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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Profile by Sanford’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross sales for the 132 Profile by Sanford locations (32 affiliate-owned and 100 franchise-owned) that have operated for at least 1 year as of December 31, 2020 and that operated a full 52 weeks in 2020

• 2020 average, median, highest, and lowest gross sales for the 34 Profile by Sanford locations (16 affiliate-owned and 18 franchise-owned) that have operated for at least 3 years as of December 31, 2020 and that operated a full 52 weeks in 2020

Section I – Background Information

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

Expands Number of Franchise Stores in New and Existing Markets

1.  In early June 2020, Profile by Sanford announced that it was significantly expanding the number of franchise stores in new and existing markets throughout the country. At the time of the announcement, there were 145 Profile stores open, 64 were being built, and 166 were committed for future development. 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.”

2.  Profile is headquartered in Sioux Falls and has 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. Mallory 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.”

3.  Profile was designed using a body of clinical research to provide individuals with a simple, effective, and sustainable approach to healthy lifestyle change. An advisory board comprised of Sanford Health physicians and researchers oversees the continued development of Profile. Sanford Health is one of the largest integrated health systems in the country.

4.  Profile combines nutrition, activity, and lifestyle coaching to encourage healthy weight loss and lasting behavior change. Certified Profile coaches help members create a personalized nutrition plan that includes a combination of Profile foods and healthy grocery options. Profile offers more than 80 food options, including pastas, soups, salad dressings, and entrees. Each Profile member receives a Profile Smart Body Scale that provides wireless, real-time progress monitoring through web and mobile applications.

Partnered with Mattress Firm to Provide Effective Corporate Wellness Solutions

5.  In late April 2021, Profile by Sanford’s blog highlighted one of Profile’s corporate wellness success stories. Corporate wellness programs are an invaluable benefit to organizations and their employees. Profile works with organizations of all sizes: from family businesses with two employees to Fortune 500 companies that employ thousands. One company, Mattress Firm, has taken the lead in partnering with Profile by Sanford to cultivate a culture of wellness within its organization.

6.  Profile by Sanford’s partnership with Mattress Firm evolved organically when the company had a few employees experience life changing results with the Profile Plan. Word spread throughout Mattress Firm and soon the full scope of the company’s team, from executives to managers to the store-level employees, gave Profile a try, and experienced great success. This led Mattress Firm to pursue becoming a Profile Employer Partner; but the company didn’t stop with Profile’s basic-level partnership option – the company wanted more.

7.  Through the advanced partnership with Mattress Firm, Profile has become a large part of the company’s culture. Profile attends Mattress Firm’s local, regional, and national company events. Profile works with employees at Mattress Firm’s corporate office in Houston and at store locations across the country. The partnership has made an impact on the entire organization without a hefty price tag and with a minimal commitment of company time.

8.  Mattress Firm members lost a total of 3,000+ pounds and Profile was delighted to be able to celebrate this victory with the company in person at its Bed Talks conference. It was an awesome couple days in Houston and more employees committed to a healthier lifestyle with Profile. Mattress Firm’s partnership has flourished due to the company’s commitment to the health and well-being of its employees.

9.  Profile has partnered with over 2,000 companies of all sizes over the past four years to offer employee wellness that aids their bottom line. More importantly, Profile’s employer partnerships have taught employees lasting lifestyle change through Profile’s core principles of nutrition, activity, and lifestyle.

Company History

10.  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. Health experts, such as dietitians, exercise physiologists, physicians, and researchers, working for the company developed a comprehensive program that made weight loss simple and sustainable.

11.  The program features a science-backed approach to weight loss and one-on-one health coaching. After testing the program, the first Profile by Sanford location opened in 2012 and franchising started in 2014. Today, there are Profile by Sanford locations across the United States.

Entrepreneur’s Franchise 500

12.  Profile by Sanford ranked No. 39 on Entrepreneur’s 2021 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 2021 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

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

2019

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  128
• Net Change:  +67

2020

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  102
• Net Change:  -26

Company-Owned

2018

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

2019

• Outlets at the Start of the Year:  29
• Outlets at the End of the Year:  29
• Net Change:  +0

2020

• Outlets at the Start of the Year:  29
• Outlets at the End of the Year:  45
• Net Change:  +16

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• As of December 31, 2020, there were 147 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).

• Forty-five 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. 102 locations were owned and operated by franchisees.

• 132 locations operated for the full 52-week period ended December 31, 2020.

• This financial performance representation contains one-year actual unaudited gross sales information of 32 affiliate-owned and operated locations and 100 franchise-owned and operated locations that were in operation for the full 52-week period ending December 31, 2020.

• It also contains three-year actual unaudited gross sales for 16 affiliate-owned locations and 18 franchise-owned locations that have been open for three years or longer and in operation for the full 52-week period ending December 31, 2020.

• Locations were classified as corporate-owned or franchise-owned based on their status as of December 31, 2020.

• On March 11, 2020, the International Health Regulations Emergency Committee of the World Health Organization declared the COVID-19 outbreak a pandemic and, the next day, the President of the United States declared COVID-19 to be a national emergency. During the weeks that followed, many states issued shelter-in-place orders and other government restrictions that severely affected businesses and consumer behavior.

• Consequently, many Profile stores were negatively affected by the pandemic and, in some states, were temporarily ordered to close. To account for the store closures, Profile by Sanford adapted the Profile business model to provide online coaching support where needed. Profile by Sanford intends to continue providing these services as long as necessary. Profile by Sanford does not currently anticipate any other changes to the Profile business model to account for future market conditions resulting from the COVID-19 pandemic.

• 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 for All Profile Locations Operated 1 Year or Longer and 3 Years or Longer

Stores Open 1 Year or Longer

• These figures include 132 affiliate-owned and franchise-owned locations that have operated for at least one year as of December 31, 2020 and that operated a full 52 weeks in 2020.

• Average Gross Sales:  $409,799
• Number and Percentage of Stores That Have Met or Exceeded the Average:  44 (33%)
• Median Gross Sales:  $245,308
• Number and Percentage of Stores That Have Met or Exceeded the Median:  66 (50%)
• Lowest Gross Sales:  $63,806
• Highest Gross Sales:  $1,750,376

Stores Open 3 Years or Longer

• These figures include 34 affiliate-owned and franchise-owned locations that have operated for at least 3 years as of December 31, 2020 and that operated a full 52 weeks in 2020.

• Average Gross Sales:  $863,226
• Number and Percentage of Stores That Have Met or Exceeded the Average:  15 (44%)
• Median Gross Sales:  $711,781
• Number and Percentage of Stores That Have Met or Exceeded the Median:  17 (50%)
• Lowest Gross Sales:  $119,932
• Highest Gross Sales:  $1,750,376

• These figures were obtained from unaudited financial statements.

• “Gross Sales” includes sales from memberships, food products, accessories, devices, and other services. It does not include sales tax collected.

• The affiliate-owned outlets have reasonably similar operations to those being offered. Profile by Sanford knows of no factors that might make sales differ significantly, other than your own skills and effort.

• Cost of Goods Sold as a percentage of Gross Sales for affiliate-owned and operated Profile locations was 35.1%. Cost of Goods Sold is based on moving average costs and excludes freight and delivery charges. Gross Margin as a percentage of Gross Sales was 64.9%.

• These charts disclose data from both franchise outlets and company-owned outlets and there are no material differences in the gross sales of franchise and company-owned outlets.

• Some outlets have sold these amounts. Your individual results may differ. There is no assurance that you will sell as much.

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