In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Restore Hyper Wellness franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Restore Hyper Wellness franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Restore Hyper Wellness franchise opportunity
Section V – Presentation and analysis of Restore Hyper Wellness’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest gross revenue for the 99 franchised Restore Hyper Wellness studios that were open and operating for at least 12 months as of December 31, 2022
- 2022 average and median number of active members for the 99 franchised Restore Hyper Wellness studios that were open and operating for at least 12 months as of December 31, 2022
Section VI – Key ratios, comparables, computations, and analyses for the Restore Hyper Wellness franchise opportunity (exclusive content for Platinum subscribers)
Section I – Restore Hyper Wellness Franchise Costs
- Restore Hyper Wellness franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $44,500
- Architect Fees: $15,000 to $30,000
- Permitting Fees: $3,000 to $10,000
- Leasehold Improvements: $318,500 to $595,000
- Equipment: $249,048 to $317,692
- Frontage Sign: $7,000 to $15,000
- Furnishings and Fixtures: $13,000 to $30,000
- Travel Costs for Launch Training (3-4 people): $6,000 to $8,000
- Grand Opening Marketing Expenses: $25,000
- Three Months’ Rent: $11,525 to $51,561
- Security Deposit: $3,842 to $17,187
- Materials and General Supplies: $10,500 to $15,000
- Technology System: $4,400 to $12,500
- Medical and Esthetician Supplies: $5,000 to $10,000
- Shipping and Handling Costs: $13,000 to $27,000
- Storage Costs: $200 to $400
- Professional Fees: $5,000 to $10,000
- Insurance Cost: $15,000 to $25,000
- Additional Funds – 3 Months: $30,000 to $75,000
- Total Estimated Restore Hyper Wellness Franchise Costs: $779,515 to $1,318,840
Section II – Restore Hyper Wellness’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Restore Hyper Wellness’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $44,500
- Royalty Fee: 7% of Gross Sales, subject to (i) the Minimum Monthly Royalty Fee of $3,500 beginning in the first month of your second year operating your Restore Studio (i.e., the 13th month after the Actual Opening Date) and (ii) an alternative fixed fee royalty structure
- Brand Fund Contribution: up to 3% of Gross Sales; currently, 2%
- Cooperative Advertising Programs: up to 2% of Gross Sales credited against your local advertising fees, unless increased by a vote of the percentage of Restore Studios operating in your defined Advertising Coverage Area that is required by the cooperative’s by-laws
Section III – Number of Franchised and Company-Owned Restore Hyper Wellness Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 64
- Net Change: +39
2021
- Outlets at the Start of the Year: 64
- Outlets at the End of the Year: 107
- Net Change: +43
2022
- Outlets at the Start of the Year: 107
- Outlets at the End of the Year: 167
- Net Change: +60
Company-Owned
2020
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 10
- Net Change: +3
2021
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 12
- Net Change: +2
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.- Outlets at the Start of the Year: 12
- Outlets at the End of the Year: 17
- Net Change: +5
Section IV – News Updates on the Restore Hyper Wellness Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Restore Hyper Wellness Franchise (Item 19, 2023 FDD)
2022 Average Annual Gross Revenue and Average Number of Active Members for Franchised Studios Open for More Than 12 Months
- The following information shows the average annual gross revenue and average number of active members for the fiscal year ending on December 31, 2022 for franchised Studios that were open and operating for at least 12 months as of December 31, 2022.
- Franchised Studios that were in operation for fewer than 12 months during 2022 and affiliate-owned Studios are not included in this financial performance representation.
- As of December 31, 2022, there were 167 franchised Studios in operation, 99 of which had been open for more than 12 months. The remaining 68 franchised Studios were open and operating for fewer than 12 full months as of December 31, 2022, and are also not included in the following tables.
- During the fiscal year ending on December 31, 2022, no Restore Studios closed.
- Average Gross Revenue: $962,095
- Number and Percentage of Studios Attaining or Exceeding Average Gross Revenue: 45/99 (45.5%)
- Median Gross Revenue: $924,376
- Lowest Gross Revenue: $153,932
- Highest Gross Revenue: $2,314,011
- Average Number of Active Members: 296
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 43/99 (43.4%)
- Median Number of Active Members: 276
- “Gross Revenue” means all revenue derived from sales of products and services to customers of the Studio as well as fees generated from your provision of administrative services.
- An “Active Member” is a customer of a franchised Studio that is current in paying membership fees or a customer with an active membership package as of December 31, 2022.
- The franchised Studio with the lowest Gross Revenue for the fiscal year ending on December 31, 2022 (i.e., $153,932) is only approximately 1,500 square feet compared to a typical franchised Studio that ranges from 1,650 to 3,000 square feet, and does not offer the full range of Authorized Services a typical franchised Studio offers.
- Except as provided in the note above, all franchised Studios offer substantially the same products and services to the public.
- The Gross Revenue figures are based on the calendar year 2022 operating results of franchised Studios. Restore Hyper Wellness obtained the Gross Revenue and Active Member information from the POS Systems utilized by Restore Studio franchisees. Neither Restore Hyper Wellness nor an independent accountant has independently audited or verified the information.
- Gross Revenue includes: (i) the gross sales proceeds from the sale of all Authorized Services, except those which constitute Specialty Services and are provided by an Authorized Care Provider which are excluded; and (ii) administrative services fees generated by your Studio in its capacity as an administrative services contractor to an Authorized Care Provider as further described herein.
- The Gross Revenue and membership of Studios are affected by seasonality. However, not every Studio will be similarly affected by seasonality due to a wide variety of factors, including location, proximity to tourist destinations and “snowbird” communities, population density of year-round residents, geographic location in winter-weather climates, market draw, local advertising, and management efforts.
Section VI – Restore Hyper Wellness Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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