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 2019 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 2019 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 2019 FDD

• Section V – Presentation and analysis of Profile by Sanford’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, median, highest, and lowest gross sales and total members for the 34 Profile by Sanford locations (24 affiliate-owned and 10 franchisee-owned) that have operated for at least 1 year as of December 31, 2018 and do not include Profile by Sanford’s virtual store which is not representative of a standard store operation

• 2018 average, median, highest, and lowest gross sales and total members for the 24 Profile by Sanford locations (all affiliate-owned) that have operated for 3 or more years as of December 31, 2018 and do not include Profile by Sanford’s virtual store which is not representative of a standard store operation

Section I – Background Information

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

Opens 100th Location

1.  Near the end of February 2019, Profile by Sanford opened its 100th franchise location (in Mobile, Alabama). In a press release announcing the milestone opening, Profile also said that it had another 100 locations in active development and over 500 total locations either in place, in development, or with committed franchisees.

2.  According to Nate Malloy, CEO of Profile by Sanford, the company will open another 8-10 stores a month through the end of 2019. This puts Profile on track to meet its growth targets, which include opening hundreds of stores from coast to coast followed by international locations, with plans to launch in Canada this summer. Malloy added, “It’s an exciting year so far and it’s only going to get better.”

3.  Profile by Sanford now employs 60 people out of its Sioux Falls office in the CNA building along the Big Sioux River in East Bank Downtown. This number includes corporate staff and coaches who provide remote, virtual support for members. Profile is running out of space. Malloy said, “We’re actually getting a little tight with space up there. At some point, yeah, we’re going to look to expand, either in that space, or find a new home.”

4.  The diet program provides a turnkey model for its franchisees. Malloy said he “couldn’t be more excited” about the caliber of successful, experienced franchisees Profile is bringing on board. He added, “The bigger challenge is just making sure we’ve got proper support for the growth we have, and we’ve been very intentional about that. For the size of company we are today for open locations, we have a strong level of support, and we’re fortunate to provide that to our franchisees, and it’s definitely a focus for us.”

5.  Notable changes for Profile in the past year include the launch of its genetics test, Profile Precise, which helps Profile coaches create individualized plans for members by understanding how well they process carbohydrates. Profile has also switched up its product line, with plans to add additional variety to its food menu.

6.  According to Malloy, “I think variety is very helpful when you’re sticking to any nutrition plan, so we’ve added new shakes, we’ve added new bars, we brought back pizza crusts, which are a very popular item. In the next 12 months we’ll continue to launch two or three products each quarter.”

New Locations

7.  Profile by Sanford continues to open new locations around the United States, including its first franchise in Tampa, which celebrated its grand opening in January 2019. Profile by Sanford Tampa is owned and operated by franchise partners Betsy and Rick Shafer.

8.  Betsy Shafer said, “We are so excited to introduce this science-backed model of weight loss to Tampa. I have seen first-hand how the Profile plan can change lives, and we look forward to sharing more about its impact at our grand opening and in the months to come.”

9.  The grand opening celebration featured a chance to meet the Tampa Profile team and a tour of the new office space. Guests were able to learn about the Profile plan, which combines nutrition, activity, and lifestyle coaching to encourage healthy weight loss and lasting behavior change. There were also opportunities for guests to win prizes, receive membership discounts, and sample complimentary Profile food.

10.  To celebrate the new location, Profile by Sanford Tampa offered an annual membership for $129 and the Profile Precise genetic testing was reduced to $99. There was also a separate ribbon cutting ceremony for Profile by Sanford Tampa in early February.

11.  Betsy Shafer said, “We are proud South Tampa Chamber members, and we are excited to celebrate Profile’s introduction to the business community at the ribbon cutting. There’s nothing like Profile in the local market, especially with a genetic component. Profile Precise is a test that harnesses the power of genetics to map each member’s DNA and analyzes how each body metabolizes carbohydrates. Understanding our genetic makeup is essential for long-term weight loss success, and Profile’s ability to bring this science to healthy living is what separates us from so many other concepts.”

Company History

12.  Profile by Sanford was founded in 2011 when Kelby Krabbenhoft, CEO of Sanford Health, challenged the organization to create a weight loss program rooted in science and research. Not long after Krabbenhoft’s suggestion, Sanford Health put together Profile’s first Clinic and Scientific Advisory Board, which 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. After extensive research, Profile opened its first retail location in 2012 and the company began franchising in 2014.

13.  Profile by Sanford combines nutrition, activity, and lifestyle coaching to help members lose weight and keep it off. The program’s results-oriented approach has allowed Profile by Sanford to open more than 30 locations in less than five years. According to Profile, the company has more than 100 new locations in development. Today, Profile by Sanford continues to seek franchisees around the United States and Canada.

Entrepreneur’s Franchise 500

14.  Profile by Sanford ranked No. 164 on Entrepreneur’s 2019 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 2019 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 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

Fiscal Year 2016

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

Fiscal Year 2017

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

Fiscal Year 2018

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

Calendar Year 2018

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  61
• Net Change:  +51

Company-Owned

Fiscal Year 2016

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  24
• Net Change:  0

Fiscal Year 2017

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  24
• Net Change:  0

Fiscal Year 2018

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

Calendar Year 2018

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  29
• Net Change:  +4

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• As of December 31, 2018, there were 90 Profile locations operating in 28 states (Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Wisconsin, and West Virginia).

• Twenty-nine locations were owned and operated by Profile by Sanford’s affiliate, Profile Development, LLC and in some cases, previously owned and operated by Profile by Sanford’s parent company, Sanford Frontiers. Sixty-one locations were owned and operated by franchisees.

• Thirty-five locations operated for the full 52-week period ended December 31, 2018.

• This financial performance representation contains one-year actual unaudited gross sales information of 24 affiliate-owned and operated locations and 10 franchise-owned and operated locations that were in operation for the full 52-week period ending December 31, 2018.

• It also contains three-year actual unaudited gross sales and membership information for 24 affiliate-owned locations that have been open for three years or longer.

• Five affiliate-owned locations were not included, consisting of 4 locations that operated less than three years and Profile by Sanford’s virtual store which services out-of-area members and is not representative of a standard store operation.

• The financial performance representation figures below do not reflect 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.

Unaudited Average and Median Sales and Membership for All Profile Locations Operated 1 Year or Longer and 3 Years or Longer

Stores Open 1 Year or Longer

• These figures include 34 affiliate-owned and franchisee-owned locations that have operated for at least one year as of December 31, 2018 and do not include Profile by Sanford’s virtual store which is not representative of a standard store operation.