In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Profile by Sanford franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Profile by Sanford franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Profile by Sanford franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Profile by Sanford outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Profile by Sanford’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• fiscal year 2018 actual and average gross sales, number of new members, number of members on June 30, 2018, and average number of members for the 23 affiliate-owned and five franchisee-owned Profile by Sanford locations that were in operation for the full 52-week period ended June 30, 2018

• fiscal year 2018 average and median gross sales for the 28 affiliate-owned and franchisee-owned Profile by Sanford locations that have operated for at least one year as of June 30, 2018

• fiscal year 2018 average and median gross sales for the 24 affiliate-owned and franchisee-owned Profile by Sanford locations that have operated for three or more years as of June 30, 2018

Section I – Background Information

15 Things You Need to Know About the Profile by Sanford Franchise

Experiences Exponential Growth

1.  In early April 2018, Profile by Sanford announced that it was significantly expanding the number of franchise stores in its system in new and existing markets across the United States. At the time of the announcement, there were 45 Profile by Sanford stores open, 64 being built, and 166 committed to future development. More than half of the new stores were sold in March.

2.  Nate Malloy, vice president of Profile by Sanford, said, “This is an exciting time for Profile, and with the phenomenal growth we are experiencing, there are no plans to slow down. Profile started with one location six years ago, and we will soon have a presence from coast to coast.”

3.  Profile by Sanford is headquartered in Sioux Falls, South Dakota and back in April had physical locations in 18 states. Current franchise commitments will expand the brand’s presence to 35 states. The company is shooting for more than 1,000 locations in the U.S., and is continuing to explore international expansion.

4.  Malloy added, “We’ve proven our program works, our business model is sustainable and that our retail setting is inviting and engaging. Entrepreneurs across the country are lining up to bring Profile’s brand of healthy lifestyle change to their communities.”

Debuts at National Retail Convention

5.  In late May 2018, Profile by Sanford helped fuel its national growth by reaching out to brokers at the RECON event in Las Vegas. At the time, Profile was scheduled to have its 50th store open in a few weeks and had 119 stores in development across the country. Kurt Brost, Sanford Health’s director of real estate services, said, “The growth trajectory is rather startling. But it’s been fun to watch this team get their arms around it and not only handle it but excel at getting these open and running around the country.”

6.  Brost and NAI’s Gregg Brown teamed up for meetings at the convention put on by the International Council of Shopping Centers. NAI has served as the master broker for Profile since last fall. Brost added, “In markets where we had little to no experience, I felt it was important to get local brokers with insight into these markets. It helps to have a relationship with the landlords and developers. You want to have someone who can tell that story and get your foot in the door.”

7.  During the convention, Brost and Brown met with brokers representing markets from Houston to Tampa and Boston to Colorado. In some markets, multiple franchisees are looking for Profile locations in different territories. According to Brost, “There’s a strong Midwest presence, and the East Coast is building out quickly along the eastern seaboard with multiple cities in Florida and North Carolina. We haven’t hit D.C. yet, but we just did Philadelphia and then New York and Boston, so we’re getting there for the East Coast.”

8.  Demand for Profile by Sanford franchises has been so strong that Brost and Brown attended RECON one year sooner than they had originally planned. Brost said, “It’s been fun to see this just explode and see the reactions from all over the country to what we’re doing. We have developers and brokers who have heard about the concept and are reaching out to us.”

9.  Brost and Brown also brought samples of Profile food products to help tell the brand’s unique story of blending health care-based research into a weight management and nutrition business. All together, Brost and Brown met with representatives of at least 22 markets, hoping to secure the right storefronts to pave the way for Profile’s success.

Newest Location

10.  Profile by Sanford is continuing to open locations across the U.S. and one of its newest locations opened on October 30, 2018 in Louisville, Kentucky. The new location is the first of four slated for the area.

11.  A grand opening community event was held at the Profile store on November 1, 2018 from 4:00 to 7:00 p.m. The community was invited to stop by the Profile store to meet the coaching staff, enjoy Profile’s delicious foods, learn about the Profile Plan program, and enter drawings for free memberships.

12.  Jamal Thruston, Profile’s franchise manager for Louisville, said, “Louisville sets the standard for championship level brands. We know there will be support for Profile’s scientifically based program that helps people achieve better living through healthier food, activity and lifestyle coaching.”

Company History

13.  Profile by Sanford began in 2011 when Kelby Krabbenhoft, the CEO of Sanford Health – one of the nation’s largest and most innovative integrated health care systems – challenged the organization to create a weight loss program rooted in science and research. Profile’s first clinic and Scientific Advisory Board came together to assemble all the pieces of a comprehensive program designed to set the industry standard for how nutrition, activity, and lifestyle coaching is delivered.

14.  A year later, the first Profile by Sanford location opened and franchising began in 2014. Since franchising started a few years ago, Profile by Sanford has grown moderately (although growth has accelerated in recent months) and is seeking franchisees across the United States and Canada.

Entrepreneur’s Franchise 500

15.  Profile by Sanford has yet to appear on Entrepreneur’s Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Profile by Sanford franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Profile by Sanford’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  2
• Net Change:  +1

2017

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  5
• Net Change:  +3

2018

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  25
• Net Change:  +20

Company-Owned

2016

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  23
• Net Change:  0

2017

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  24
• Net Change:  +1

2018

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  27
• Net Change:  +3

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• As of June 30, 2018, there were 52 Profile locations operating in 17 states (Alabama, Arkansas, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Utah, and Wisconsin).

• Twenty seven locations were owned and operated by the franchisor’s affiliate Profile Development, LLC and in some cases, previously owned and operated by the franchisor’s parent company Sanford Frontiers.

• Twenty five locations were owned and operated by franchisees.

• Twenty eight locations operated for the full 52-week period ended June 30, 2018.

• This financial performance representation contains actual unaudited gross sales and membership information of the 23 affiliate-owned and operated locations and five franchisee-owned and operated locations that were in operation for the full 52-week period ended June 30, 2018.

• The other four affiliate-owned locations consist of three locations operated less than 52 weeks and Profile’s virtual store servicing out-of-area members and is not representative of a standard store operation.

• The financial performance representation figures below do not reflect all of the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 1 – Unaudited Gross Sales and Membership Information for Affiliate-Owned and Operated and Franchisee-Owned and Operated Profile Locations

Location #1