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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Profile by Sanford’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, highest, and lowest gross sales and total members for the 89 Profile by Sanford locations (28 affiliate-owned and 61 franchise-owned) that have operated for at least 1 year as of December 31, 2019 and do not include Profile by Sanford’s virtual store which is not representative of a standard store operation
- 2019 average, median, highest, and lowest gross sales and total members for the 22 Profile by Sanford locations (all affiliate-owned) that have operated for at least 3 years as of December 31, 2019 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
Launches COVIDAge Calculator
1. In early May 2020, Profile by Sanford and Everist Health unveiled a new screening system to determine the risk of complications for COVID-19. The COVIDAge Calculator is an opportunity, says Profile by Sanford’s chief healthy living expert Stephen Herrmann, “for people to identify their risk of hospitalization, ICU admission and mortality.” Herrmann says information like body mass index, smoking habits, blood sugar, and cholesterol levels helps identify someone’s “COVID age” and risk of complication.
2. This tool follows a similar heart age calculator that was unveiled earlier this year by Profile by Sanford and Everist Health. The AngioDefender combines several health markers to give an idea of a person’s overall cardiovascular health. “Being able to translate that and pivot quickly from general cardiovascular health to COVID-19 risk, is really impressive that they were able to do it so quickly,” Herrmann said.
3. Herrmann added, “All of these health factors play a role, but sometimes it’s complex to understand how. You can plug in the numbers you know; it creates a COVID age. That age will help you place your risk. It’s adjusting your risk based on all those other health factors.”
4. Herrmann said the COVIDAge Calculator can be useful in determining which risk factors someone can control. He continued, “A lot of them are linked to nutrition and diet. For a long-term solution, Profile is able to help build nutrition plans, activity plans and focus on lifestyle behaviors to lower those risk factors for this and other future issues that might arise.”
5. Herrmann reiterated that Profile by Sanford, part of Sanford Health, and Everist Health, a health technology company, are leading the way on something “that’s never been tried before.” “What we’re trying to do with Everist Health is simplify some of the complex risk factors out there. So when people have a variety of health conditions, they don’t necessarily understand real well how they interact. How does your A1C (diabetes blood test) interact with your blood pressure, interact with your age, in increasing or decreasing your risk? So, trying to figure out a simple way to do that is really important. And then, what each of those independent risk factors contributes.”
Science-backed Program Fuels Jump on Franchise 500
6. At the beginning of February 2020, Profile by Sanford earned recognition on Entrepreneur magazine’s competitive Franchise 500 list. Entrepreneur magazine ranked the health coaching program No. 64 on its Franchise 500 list for 2020 — a jump of 100 spots from its place on the 2019 list.
7. Profile by Sanford combines nutrition, activity, and lifestyle coaching to help members lose weight and keep it off. Physicians and researchers at Sanford Health designed the program to take the guesswork out of healthy lifestyle change.
8. Nate Malloy, vice president of Sanford Health and CEO of Profile by Sanford, explained the approach in a Sanford Health Innovations podcast. “It really allows this arm of Sanford Health to deliver a program that all physicians would like to have the time to be able to do themselves. It’s just not currently the way that the system is designed and the way that we handle things like obesity. And so our approach to deliver one-on-one coaching in an environment that is inviting, it’s convenient and it’s relatively simple to follow, I think is a big part of it. And I see it as a tool that our physicians and care teams can utilize to enhance the experience for their patients to provide them with a holistic wellness solution,” Malloy said.
9. Entrepreneur magazine recognized how impressive of a year 2019 was for Profile by Sanford. The company opened 67 stores last year and celebrated the opening in Mobile, Alabama of its 100th store. Reagan Clemensen, director of franchise development for Profile by Sanford, said, “More than 1,100 franchise companies applied for the Franchise 500 list this year, so we are excited to lock in a top-100 ranking. This is a testament to the work Profile coaches are doing with their members all over the country.”
10. Also around the time of the announcement, Profile by Sanford had launched Profile MOM, a program for women that was developed by OB/GYNs and registered dietitians at Sanford Health and Profile. The goal of the program is to provide resources that help optimize nutrition, guide safe physical activity, and encourage healthy habits before, during, and after pregnancy.
11. After learning about the person, Profile coaches will place them in one of five evidence-based plans for various stages in life and individual goals. They are:
- Reboot: a structured low carb weight loss plan;
- Balance: for special medical considerations such as diabetes;
- MOM: for before, during, and after pregnancy;
- Perform: athletic performance nutrition; and
- Teen: healthy habits for teenagers.
12. Profile by Sanford was founded in 2011 after Sanford Health CEO Kelby Krabbenhoft challenged the organization to come up with a weight loss program rooted in science and research. A group of Sanford Health experts (dietitians, exercise physiologists, physicians, and researchers) rose to the challenge and created a comprehensive program designed to set the industry standard for how nutrition, activity, and lifestyle coaching is delivered.
13. After developing a solid program, the first Profile by Sanford location opened in 2012 and franchising started two years later. Today, Profile by Sanford has locations in more than 35 states.
Entrepreneur’s Franchise 500
14. Profile by Sanford ranked No. 64 on Entrepreneur’s 2020 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 10
- Net Change: +7
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 61
- Net Change: +51
- Outlets at the Start of the Year: 61
- Outlets at the End of the Year: 128
- Net Change: +67
- Outlets at the Start of the Year: 25
- Outlets at the End of the Year: 25
- Net Change: +0
- Outlets at the Start of the Year: 25
- Outlets at the End of the Year: 29
- Net Change: +4
- Outlets at the Start of the Year: 29
- Outlets at the End of the Year: 29
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- As of December 31, 2019, there were 157 Profile locations operating in 36 states (Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wisconsin).
- 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. 128 locations were owned and operated by franchisees.
- Ninety locations operated for the full 52-week period ended December 31, 2019.
- This financial performance representation contains one-year actual unaudited gross sales information of 28 affiliate-owned and operated locations and 61 franchise-owned and operated locations that were in operation for the full 52-week period ending December 31, 2019.
- Profile by Sanford’s virtual store which services out-of-area members and is not representative of a standard store operation, was not included.
- It also contains three-year actual unaudited gross sales and membership information for 22 affiliate-owned locations that have been open for three years or longer.
- Seven affiliate-owned locations were not included, consisting of 6 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 89 affiliate-owned and franchise-owned locations that have operated for at least one year as of December 31, 2019 and do not include Profile by Sanford’s virtual store which is not representative of a standard store operation.