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

• Section I – Estimated initial investment (franchise costs) for a Profile franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Profile franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Profile outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Profile franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Profile’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, highest, and lowest gross sales for the 35 affiliate-owned Profile locations that have operated for at least 1 year as of December 31, 2021 and that operated a full 52 weeks in 2021, and the 22 affiliate-owned Profile locations that have operated for 3 or more years as of December 31, 2021 and that operated a full 52 weeks in 2021

• 2021 average, median, highest, and lowest gross sales for the 63 franchise-owned Profile locations that have operated for at least 1 year as of December 31, 2021 and that operated a full 52 weeks in 2021, and the 41 franchise-owned Profile locations that have operated for 3 or more years as of December 31, 2021 and that operated a full 52 weeks in 2021

• Section VI – Key ratios, comparables, computations, and analyses for the Profile franchise opportunity (exclusive content for Platinum subscribers)

Section I – Profile Franchise Costs

• Profile (stand-alone store) franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Profile Start-Up Kit:  $112,500 to $134,500
• Initial Product Inventory:  $15,000 to $20,000
• Exterior Signage:  $9,000 to $13,000
• Specific Build-out Materials:  $20,500 to $29,500
• Real Estate Leasehold Improvements:  $93,000 to $160,000
• Store Rent:  $5,000 to $19,500
• Lease and Utility Security Deposits:  $1,000 to $9,500
• Initial Promotional Campaign:  $45,000 to $90,000
• Insurance:  $2,000 to $4,000
• Training-Related Expenses:  $2,500 to $6,000
• Professional Fees:  $1,000 to $12,000
• Architectural and Engineering:  $12,500 to $16,000
• Licenses:  $500 to $2,500
• Additional Funds (3-Month Period):  $30,000 to $90,000
• Total Estimated Profile Franchise Costs:  $399,000 to $656,000

Section II – Profile’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Profile’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Royalty Fee:  5% of Gross Revenue
• Marketing Fund Contribution:  2% of weekly Gross Revenue
• Multi-Area Marketing, Marketing Cooperatives, or Local Marketing:  amount Profile designates, not to exceed 2% of Gross Revenue

Section III – Number of Franchised and Company-Owned Profile Outlets

Franchised

2019

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  128
• Net Change:  +51

2020

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

2021

• Outlets at the Start of the Year:  102
• Outlets at the End of the Year:  63
• Net Change:  -39

Company-Owned

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

2021

• Outlets at the Start of the Year:  45
• Outlets at the End of the Year:  35
• Net Change:  -10

Section IV – Background Information on the Profile Franchise

11 Things You Need to Know About the Profile Franchise

Acquired by Ten Oaks Group

1.  In mid-January 2022, Sanford Health sold Profile to North Carolina-based Ten Oaks Group, a family office investment firm. The move comes as Sanford continues “to thoughtfully evaluate our business portfolio with the goal of strengthening our focus on our core mission of providing health care to the patients, residents and communities we serve,” said Michelle Bruhn, chief financial officer of Sanford. Prior to the sale, Sanford had made a string of layoffs at Profile in the latter half of 2021.

2.  Bruhn continued, “Profile by Sanford has spent the past decade on a journey to become the leading health and nutrition program in the United States. Thousands of members have lost more than 3 million pounds using Profile’s science-backed coaching approach. This opportunity will give Profile the flexibility and autonomy to grow strategically with new partners, while allowing Sanford Health to reinvest critical resources into the delivery of health care. Profile members and employees should not experience any disruptions during this transition.”

Partners with HealthPartners on Worker Weight Management

3.  In early August 2021, Profile and HealthPartners, the largest consumer-governed, non-profit health care organization in the nation, announced the results of a 12-month cohort longitudinal study that evaluated the impact of a health system sponsored employee weight management program.

4.  The purpose of the study was to evaluate the Profile program on employee and employer-related outcomes including weight, health behaviors, and health and well-being, as well as health care utilization, absenteeism, and job satisfaction. Participants in the program lost an average of 8% in body weight after 3 months and maintained through 12 months of joining Profile. In addition, employees reported improvements in emotional health and higher levels of life satisfaction and energy to sustain a full workday.

5.  Stephen Herrmann, PhD, senior director of innovation and research at Profile, said, “The results from this study underscore the important role that employers can play in improving the health, well-being and productivity of their workforce by offering an evidence-based weight management program that incorporates personalized health coaching, structured meal planning and other lifestyle interventions. This collaboration with HealthPartners was meaningful because they highly value their employees’ health and well-being and want to see evidence of effectiveness; so we had the opportunity to design a rigorous program in close coordination with a healthcare delivery system and insurer.”

6.  “In the workplace, obesity has widely-documented impacts – employees with obesity have 20% more doctor visits, incur higher medical costs and have higher rates of absenteeism than those without overweight or obesity,” said Nico P. Pronk, PhD, MA, FACSM, FAWHP, president of HealthPartners Institute and chief science officer at HealthPartners. “The study conducted with Profile by Sanford will help to establish more rigorous practice-based real-world evidence of the impacts of weight loss programs on healthcare-related outcomes including chronic diagnoses, medication and health care utilization as well as indicators of well-being.”

7.  HealthPartners employs more than 26,000 people and serves over 2 million patients and insurance plan members across the Midwest. Profile is currently offered to all interested HealthPartners employees and adult dependents who receive health insurance through their employer. Participants who complete at least 20 Profile coaching sessions during the year are eligible for a financial incentive to reduce their health insurance costs. The incentive is not tied to program outcomes but rather to participation in the program.

8.  In total, 140 participants enrolled in the study with Profile. Over the course of one year, participants reported clinically significant improvements in weight, BMI, fruit/vegetable intake, home food preparation, added sugar, sugar sweetened beverages, and life satisfaction.

Company History

9.  Profile (formerly 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. Sanford tapped its dietitians, exercise physiologists, physicians, and researchers to develop a comprehensive weight loss program that made weight loss simple and sustainable. Profile offers one-on-one health coaching to clients.

10.  After testing the program for a few years, Sanford Health opened the first Profile by Sanford location in 2012. Sanford Health started franchising Profile in 2014. In 2022, Sanford Health sold Profile to Ten Oaks Group. Today, there are Profile locations across the United States.

Entrepreneur’s Franchise 500

11.  Profile ranked No. 289 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Profile Franchise (Item 19, 2022 FDD)

• As of December 31, 2021, 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’s affiliate, Profile Development, LLC, and in some cases, previously owned and operated by Profile’s parent company, Sanford Frontiers. 102 locations were owned and operated by franchisees.

• 98 locations operated for the full 52-week period ended December 31, 2021.

• This financial performance representation contains one-year actual unaudited gross sales information of 35 affiliate-owned and operated locations and 63 franchise-owned and operated locations that were in operation for the full 52-week period ending December 31, 2021.

• It also contains three-year actual unaudited gross sales for 22 affiliate-owned locations and 41 franchise-owned locations that have been open for three years or longer and in operation for the full 52-week period ending December 31, 2021.

• Locations were classified as corporate-owned or franchise-owned based on their status as of December 31, 2021.

• 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.

Part 1 – Unaudited Average and Median Sales for Affiliate-Owned Profile Locations Operated 1 Year or Longer and 3 Years or Longer

Stores Open 1 Year or Longer

• These figures include 35 affiliate-owned locations that have operated for at least one year as of December 31, 2021 and that operated a full 52 weeks in 2021.

• Average Gross Sales:  $654,860
• Number and Percentage of Stores That Have Met or Exceeded the Average:  12 (35%)
• Median Gross Sales:  $443,038
• Number and Percentage of Stores That Have Met or Exceeded the Median:  17 (50%)
• Lowest Gross Sales:  $124,910
• Highest Gross Sales:  $2,067,812

Stores Open 3 Years or Longer

• These figures include 22 affiliate-owned locations that have operated for 3 or more years as of December 31, 2021 and that operated a full 52 weeks in 2021.

• Average Gross Sales:  $850,197
• Number and Percentage of Stores That Have Met or Exceeded the Average:  9 (41%)
• Median Gross Sales:  $737,157
• Number and Percentage of Stores That Have Met or Exceeded the Median:  11 (50%)
• Lowest Gross Sales:  $257,585
• Highest Gross Sales:  $2,067,812

• 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.

• These affiliate-owned outlets have reasonably similar operations to those being offered. Profile 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 32.4%. 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 67.6%.

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

Part 2 – Unaudited Average and Median Sales for Franchised Profile Locations Operated 1 Year or Longer and 3 Years or Longer

Stores Open 1 Year or Longer

• These figures include 63 franchise-owned locations that have operated for at least one year as of December 31, 2021 and that operated a full 52 weeks in 2021.

• Average Gross Sales:  $552,692
• Number and Percentage of Stores That Have Met or Exceeded the Average:  26 (41%)
• Median Gross Sales:  $450,268
• Number and Percentage of Stores That Have Met or Exceeded the Median:  32 (51%)
• Lowest Gross Sales:  $135,985
• Highest Gross Sales:  $1,447,228

Stores Open 3 Years or Longer

• These figures include 41 franchise-owned locations that have operated for 3 or more years as of December 31, 2021 and that operated a full 52 weeks in 2021.

• Average Gross Sales:  $599,624
• Number and Percentage of Stores That Have Met or Exceeded the Average:  19 (46%)
• Median Gross Sales:  $559,813
• Number and Percentage of Stores That Have Met or Exceeded the Median:  21 (51%)
• Lowest Gross Sales:  $173,960
• Highest Gross Sales:  $1,447,228

• 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.

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

Section VI – Profile Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️