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

• Section I – Background information on The DRIPBaR franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for The DRIPBaR franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The DRIPBaR franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned The DRIPBaR 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 The DRIPBaR’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2018, 2019, and 2020 gross revenue, cost of goods sold, operating expenses, known franchisee expenses that are not paid by affiliate-owned outlets (royalty, general advertising and marketing fee, phone system fee, digital signage fee, technology fee, social media and reputation management fee, website and search engine optimization fee, web-based application fee), and net revenue after known franchisee expenses for the one affiliate-owned The DRIPBaR location that was open during the entire 2018, 2019, and 2020 calendar years

Section I – Background Information

19 Things You Need to Know About The DRIPBaR Franchise

Eyes Tremendous Growth in 2021

1.  In January 2021, The DRIPBaR claimed that it was set for tremendous growth in 2021 and beyond. The company, which at the time had more than 200 locations in various stages of development throughout the country, is focused on helping its clients obtain their best cellular health using advances in intravenous therapy.

2.  The company was slated to open its first franchise location in Atlanta in January, followed by a dozen more across Florida, Massachusetts, Rhode Island, Colorado, and Texas by the end of March. According to Chief Development Officer Ben Crosbie, The DRIPBaR will open as many as 40 locations by the end of 2021.

3.  Crosbie said, “Treatments that aim to boost your immune system are gaining in popularity during the pandemic, so it should come as no surprise that The DRIPBaR has seen interest in its franchise opportunity grow exponentially. People want to maintain their best health. We are excited to be able to educate the public on the value of IV Therapy and the power that IV therapies provide to clients to maintain their best health, or to fight cancer, heart disease and other illnesses.”

4.  IV therapy is the administration of nutrients and hydration directly into the bloodstream for immediate absorption and use by the body. It is the fastest way to deliver nutrients throughout the body, because it bypasses the digestive system and goes directly into the organs, resulting in a 90-100% absorption rate.

5.  Some of the biggest proponents of IV therapy include celebrities Madonna, Adele, Chrissy Teigen, John Legend, Cindy Crawford, Rihanna, and Brad Pitt, among countless others. While the exact reason each one uses IV vitamin therapy may be different, the underlying desire is the same: they want to tap into the extraordinary health benefits it offers.

6.  The DRIPBaR leverages these benefits and provides IV therapies that are designed to do everything from slowing the signs of aging to reducing brain fog and boosting energy. The franchise’s clients have 18 different IV lifestyle or health-support drips to choose from, including the “Flu Fighter” that may help the common cold and High C, which is typically for current or former cancer patients. For those who don’t have time for a full vitamin infusion but want the benefit, clients can choose one of seven “quick shots” that Crosbie says gives the body an added boost. Each session ranges in price from about $100 to $200 and people are sitting in the chair anywhere from 25 to 40 minutes.

7.  Crosbie added, “The quality and range of our offerings, and the consistent excellence of our services, will distinguish us as the market grows. COVID-19 has created a new understanding in people that they need to be as healthy as they can be. Healthcare is no longer a passive activity, where people wait for an illness to strike and then react to it. More than ever people want to be in control of their own health, they want to be proactive. They want non-drug therapies to support their best health. They want what The DRIPBaR has to offer and we are excited to offer our services.”

Business Mogul Carl Gould Plans to Expand Franchise Across New Jersey

8.  In early May 2021, The DRIPBaR announced that it was expanding across New Jersey with the help of worldwide leading authority on business and entrepreneurship, Carl Gould. Gould, a client and true believer of IV therapy, is looking to expand The DRIPBaR through franchising partnerships across the state and in metro areas like Newark, the suburbs of Philadelphia, and Atlantic City. The first location was expected to open later in the summer in Butler, a borough in northern New Jersey.

9.  Gould said, “I wholeheartedly believe in The DRIPBaR’s concept and mission. Their overall goal is to help people through IV therapy. From cancer patients to the busy mom, The DRIPBaR has something to help everyone. I want to bring New Jersey the best IV therapy you can get, and for me that is what The DRIPBaR does.”

10.  Ben Crosbie, the company’s chief development officer, could not be happier to have Gould. Gould’s company, 7 Stage Advisors, has mentored the launch of over 5,000 businesses in 35 countries. The serial entrepreneur built three multi-million-dollar businesses by age 40 and is now committed to growing The DRIPBaR.

11.  Gould added, “The DRIPBaR is focused on helping people and that mission is what I have been committed to my whole life. The DRIPBaR’s dedication to the community, cutting edge treatments, and excellence in the industry will lead us to success across the state.”

Continues Expansion in Florida

12.  At the beginning of October 2021, The DRIPBaR announced the opening of its first Melbourne, Florida location on October 12. The new business is located in Pineda Landings at 6375 North Wickham Rd., Suite 101 and was opened by Hollie Gilbert, with the help of her husband, Chris Arangio.

13.  The DRIPBaR’s IV therapy infusions strive to enable its clients to live more vital, energized lives and help make them more resilient to disease. As an area representative for the brand, Gilbert is helping to expand the franchise throughout the Greater Orlando and Space Coast regions. The DRIPBaR in Melbourne will be her first, with her next to open in Lake Nona in 2022.

14.  With more than 20 years of executive level marketing experience in the hospitality industry, Hollie Gilbert became invested in The DRIPBaR after the onset of COVID-19. At the time, she understood the hospitality industry needed some time to recover and wanted to pursue her passion for helping others live holistic lifestyles and explore alternative medicine techniques.

15.  This passion stemmed from the assistance of alternative therapies which helped her through two successful pregnancies in her forties. Eventually, the concept of The DRIPBaR was introduced to Gilbert and upon further research into the brand, she was ready to open up a location of her own.

16.  Gilbert said, “We are thrilled to bring The DRIPBaR and its IV therapy infusions to the beautiful community of Melbourne. Helping others live their best lives by spreading the word about a holistic approach to health is something that makes us immensely proud in what we do. We hope to carry on the mission of The DRIPBaR by helping our clients live more balanced lives and giving them and their cells the proper nutrients they need.”

Company History

17.  The DRIPBaR was founded in 2016 by Dr. Steve Petteruti and his wife Shannon in Rhode Island. The company is an IV therapy concept that is dedicated to the physical and mental health of clients and to the research that is breaking new boundaries in the IV therapy community. Through its IV drip cocktails and specialized treatments, The DRIPBaR is harnessing advances in cellular health and delivering individualized treatment for overall health and well-being.

18.  After a few years, The DRIPBaR began franchising in 2019 and there are now locations in a handful of states and many more in the process of opening.

Entrepreneur’s Franchise 500

19.  The DRIPBaR did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of The DRIPBaR 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 The DRIPBaR’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:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

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

2020

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

Company-Owned

2018

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

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  1
• Net Change:  +1

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

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

• The following historical financial performance representation is based on The DRIPBaR’s affiliate, Intellectual Medicine, LLC. The DRIPBaR’s affiliate operated one location.

• Intellectual Medicine, LLC has operated a business offering the same services as those described in The DRIPBaR’s Disclosure Document since 2016. Intellectual Medicine, LLC also offers additional services that are not related to those described in the Disclosure Document.

• The figures below are derived directly from the activities related to intravenous therapy, which is the same service that The DRIPBaR’s franchisees will be offering. The DRIPBaR’s affiliate sold supplements and other retail products and provided aesthetics and hormone services as well. Those other products and services are not accounted for in the figures below as they are not part of the products and services that The DRIPBaR franchisees offer.

January 1, 2018 to December 31, 2018

• Gross Revenue:  $510,590
• Cost of Goods Sold:  $103,565
• Operating Expenses:  $183,657
• Net Revenue:  $223,368

Known Franchisee Expenses That Are Not Paid by Affiliate-Owned Outlets

• Royalty (7%):  $35,741.30
• General Advertising and Marketing Fee (1%):  $5,105.90
• Phone System Fee ($25 per month):  $300
• Digital Signage Fee ($90 per month):  $1,080
• Technology Fee ($152 per month):  $1,824
• Social Media and Reputation Management Fee ($320 per month):  $3,840
• Website and Search Engine Optimization Fee ($499 per month):  $5,988
• Web-Based Application Fee ($250 per month):  $3,000
• Net Revenue After Known Expenses:  $166,488.80

January 1, 2019 to December 31, 2019

• Gross Revenue:  $543,310
• Cost of Goods Sold:  $96,703
• Operating Expenses:  $200,327
• Net Revenue:  $246,280

Known Franchisee Expenses That Are Not Paid by Affiliate-Owned Outlets

• Royalty (7%):  $38,031.70
• General Advertising and Marketing Fee (1%):  $5,433.10
• Phone System Fee ($25 per month):  $300
• Digital Signage Fee ($90 per month):  $1,080
• Technology Fee ($152 per month):  $1,824
• Social Media and Reputation Management Fee ($320 per month):  $3,840
• Website and Search Engine Optimization Fee ($499 per month):  $5,988
• Web-Based Application Fee ($250 per month):  $3,000
• Net Revenue After Known Expenses:  $186,783.20

January 1, 2020 to December 31, 2020

• Gross Revenue:  $570,903
• Cost of Goods Sold:  $86,570
• Operating Expenses:  $199,151
• Net Revenue:  $285,182

Known Franchisee Expenses That Are Not Paid by Affiliate-Owned Outlets

• Royalty (7%):  $39,963.21
• General Advertising and Marketing Fee (1%):  $5,709.03
• Phone System Fee ($25 per month):  $300
• Digital Signage Fee ($90 per month):  $1,080
• Technology Fee ($152 per month):  $1,824
• Social Media and Reputation Management Fee ($320 per month):  $3,840
• Website and Search Engine Optimization Fee ($499 per month):  $5,988
• Web-Based Application Fee ($250 per month):  $3,000
• Net Revenue After Known Expenses:  $223,477.76

• The Gross Revenue above was derived exclusively from the sales of intravenous therapy services, which are the services that The DRIPBaR franchisees will offer.

• The DRIPBaR affiliate’s business is located in a 2,000 square foot retail space and has been operating since 2016. The DRIPBaR anticipates its franchisees operating in 1,000 to 1,500 square foot retail spaces.

• In addition to The DRIPBaR’s affiliate offering additional services, supplements, and retail, the affiliate does not pay royalty fees or marketing fees, which The DRIPBaR franchisees will have to pay.

• Because The DRIPBaR’s affiliate, Intellectual Medicine, LLC, operates both a DRIPBaR as well as other services that are not connected with the franchise system, The DRIPBaR calculated a pro rata portion of all credit card sales, rent, professional services, and office supplies that are directly attributed to the portion of the DRIPBaR.

• Additionally, Intellectual Medicine, LLC employs a medical director for both its DRIPBaR and other affiliated practice. The DRIPBaR has calculated over the flat monthly rate of the medical director based on the duties provided by the medical director for the operation of a DRIPBaR business. This figure is included in the Operating Expenses above.

• Affiliate-owned outlets are not required to pay royalties, general advertising and marketing fees, technology fees, and digital marketing fees. These fees are estimates of what a represented Affiliate owned-outlet would have incurred for these fees.

• Other than those stated above, there are no other materially different characteristics between The DRIPBaR’s affiliate’s business and the type of business The DRIPBaR franchisees operate.

• “Gross Revenue,” as used in the above chart, means total revenue after any discounts to consumers that are directly attributed to the DRIPBaR IV services. All other gross revenue of Intellectual Medicine, LLC that is not directly attributed to the DRIPBaR intravenous therapy services has been removed.

• “Cost of Goods Sold,” as used in the above chart, means the actual cost of intravenous therapy products and intravenous therapy services provided under the DRIPBaR business and marks.

• “Operating Expenses,” as used in the above chart, includes the pro rata portion of expenses associated with payroll, insurance, licenses and permits, rent, marketing, and other general expenses associated with the day-to-day operation of the DRIPBaR business of The DRIPBaR’s affiliate, Intellectual Medicine, LLC.

• “Net Revenue,” as used in the above chart, means Gross Revenue minus Cost of Goods Sold and Operating Expenses.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

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