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 2024 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 2024 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 2024 FDD, including information on the:
- 2023 average, median, lowest, and highest gross sales, by quartile and overall, for the 153 franchised Restore Hyper Wellness studios that were open and operating for at least 12 months as of December 31, 2023
- 2023 average, median, lowest, and highest number of active members, by quartile and overall, for the 153 franchised Restore Hyper Wellness studios that were open and operating for at least 12 months as of December 31, 2023
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 2024 FDD:
- Initial Franchise Fee: $44,500
- Architect Fees: $15,000 to $30,000
- Permitting Fees: $3,000 to $10,000
- Leasehold Improvements: $325,000 to $600,000
- Equipment: $239,674 to $268,425
- 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: $9,000 to $44,000
- Security Deposit: $3,000 to $16,000
- Materials and General Supplies: $10,500 to $15,000
- Technology System: $6,000 to $16,000
- Medical and Esthetician Supplies: $5,000 to $10,000
- Shipping and Handling Costs: $13,000 to $27,000
- Professional Fees: $5,000 to $10,000
- Commercial Surety Bond: $500 to $2,000
- Insurance Cost: $12,500 to $19,000
- Additional Funds – 3 Months: $75,000 to $100,000
- Total Estimated Restore Hyper Wellness Franchise Costs: $817,674 to $1,289,925
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 2024 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 Business Opening Date) and (ii) an alternative fixed fee royalty structure
- Brand Fund Contribution: 2% of Gross Sales
- Cooperative Advertising Programs: 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
2021
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- 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
2023
- Outlets at the Start of the Year: 167
- Outlets at the End of the Year: 214
- Net Change: +47
Company-Owned
2021
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 12
- Net Change: +2
2022
- Outlets at the Start of the Year: 12
- Outlets at the End of the Year: 17
- Net Change: +5
2023
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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: 17
- Outlets at the End of the Year: 14
- Net Change: -3
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, 2024 FDD)
- The following information shows the average annual Gross Sales and average number of Active Members for the fiscal year ending on December 31, 2023, for franchised Studios that were open and operating for at least 12 months as of December 31, 2023 (“Included Studios”).
- Franchised Studios that were in operation for fewer than 12 months during 2023 and affiliate-owned Studios are not included in this financial performance representation.
- As of December 31, 2023, there were 214 franchised Studios in operation, 153 of which are Included Studios. The remaining 61 franchised Studios were open and operating for fewer than 12 full months as of December 31, 2023, and are therefore not Included Studios.
- During the fiscal year ending on December 31, 2023, 18 Restore Studio franchises closed.
- Table 1 in each of the below sections provides data for all of the Included Studios, while Table 2 in each of the below sections divides the Included Studios into “quartile” subsets, with Quartile 1 being the highest performing quartile and Quartile 4 being the lowest performing quartile.
Part 1 – 2023 Average Gross Sales for Franchised Studios Open for More Than 12 Months
- Average Gross Sales: $886,379
- Median Gross Sales: $868,774
- Lowest Gross Sales: $302,045
- Highest Gross Sales: $2,181,616
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 68/153 (44.4%)
Quartile 1
- Number of Studios: 39
- Average Gross Sales: $1,299,231
- Median Gross Sales: $1,207,553
- Lowest Gross Sales: $1,045,634
- Highest Gross Sales: $2,181,616
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 14/39 (35.9%)
Quartile 2
- Number of Studios: 38
- Average Gross Sales: $938,267
- Median Gross Sales: $945,429
- Lowest Gross Sales: $868,774
- Highest Gross Sales: $1,031,736
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 20/38 (52.6%)
Quartile 3
- Number of Studios: 38
- Average Gross Sales: $757,110
- Median Gross Sales: $766,635
- Lowest Gross Sales: $652,313
- Highest Gross Sales: $868,470
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 20/38 (52.6%)
Quartile 4
- Number of Studios: 38
- Average Gross Sales: $540,042
- Median Gross Sales: $549,113
- Lowest Gross Sales: $302,045
- Highest Gross Sales: $651,901
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 24/38 (63.2%)
Total
- Number of Studios: 153
- Average Gross Sales: $886,379
- Median Gross Sales: $868,774
- Lowest Gross Sales: $302,045
- Highest Gross Sales: $2,181,616
- Number and Percentage of Studios Attaining or Exceeding Average Gross Sales: 78/153 (50.1%)
Part 2 – 2023 Average Number of Active Members for Franchised Studios Open for More Than 12 Months
- Average Number of Active Members: 259
- Median Number of Active Members: 247
- Lowest Number of Active Members: 113
- Highest Number of Active Members: 625
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 69/153 (45.1%)
Quartile 1
- Number of Studios: 40
- Average Number of Active Members: 372
- Median Number of Active Members: 347
- Lowest Number of Active Members: 308
- Highest Number of Active Members: 625
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 15/40 (37.5%)
Quartile 2
- Number of Studios: 37
- Average Number of Active Members: 279
- Median Number of Active Members: 279
- Lowest Number of Active Members: 247
- Highest Number of Active Members: 307
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 19/37 (51.4%)
Quartile 3
- Number of Studios: 38
- Average Number of Active Members: 220
- Median Number of Active Members: 220
- Lowest Number of Active Members: 192
- Highest Number of Active Members: 244
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 19/38 (50%)
Quartile 4
- Number of Studios: 38
- Average Number of Active Members: 162
- Median Number of Active Members: 167
- Lowest Number of Active Members: 113
- Highest Number of Active Members: 190
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 24/38 (63.2%)
Total
- Number of Studios: 153
- Average Number of Active Members: 259
- Median Number of Active Members: 247
- Lowest Number of Active Members: 113
- Highest Number of Active Members: 625
- Number and Percentage of Studios Attaining or Exceeding Average Number of Active Members: 77/153 (50.3%)
- “Gross Sales” is defined in Item 6.
- 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, 2023.
- All franchised Studios offer substantially the same products and services to the public.
- The Gross Sales figures are based on the calendar year 2023 operating results of franchised Studios. Restore Hyper Wellness obtained the Gross Sales and Active Member information from the POS Systems utilized by Restore Studio franchisees.
- Gross Sales 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 Sales 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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