ARCpoint LabsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ARCpoint Labs franchise requires a total initial investment of $166K – $310K, including a $55K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $155K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 28 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $166K – $310K
- 36th pct Healthcare
- Avg gross sales
- $155K
- 3rd pct Healthcare
- Royalty
- 7.0%
- 34th pct Healthcare
- Units
- 128
- 64th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 28 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 128 to 124 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $166K – $310K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $155K/year (median $148K).
- Verdict D (Below Average) with a risk score of 72/100. SBA loan charge-off rate of 0.0% across 28 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ARCpoint Franchise Group, LLC
- Parent company
- Cresso Brands, LLC
- Incorporated in
- SC
- HQ
- 303 Perimeter Center North, Suite 575, Atlanta, Georgia 30346
- Auditor
- KMS Financial Consulting
- Audited financials
- Franchisor revenue
- $5.6M
- vs $4.4M prior year
Overview
About
ARCpoint Labs franchisees operate drug testing and occupational health screening centers. Day-to-day operations include administering urine/hair/saliva tests, breath alcohol tests, and DOT physicals for employers; managing CLIA compliance and sample chain-of-custody; handling client billing and lab coordination; and staffing testing centers with certified technicians. Most revenue derives from corporate workplace testing programs and pre-employment screening contracts.
- CEO
- Kelly Crompvoets
- Headquarters
- GA
- Founded
- 2005
- FDD year
- 2025
- States available
- 29
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $54K | $72K |
| Equipment, build-out, other | $57K | $184K |
| Total initial investment | $166K | $310K |
Source: ARCpoint Labs 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$25K
16.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
12.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $166K – $310K
- Better than avg vs category
- Liquid capital req'd
- $54K – $72K
- Near category avg vs category
- Franchise fee
- $40K – $55K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $450 |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $155K
- Per unit, per year
- Median gross sales
- $148K
- Item 19 type
- gross_sales
- Sample size
- 95 units
- vs category median 12 · large
- Range (low → high)
- $234→$1.2M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Healthcare averages
How ARCpoint Labs Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 128
- Opened
- 16
- Last reporting year
- Closed
- 26
- Turnover rate
- 20.3%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -10.1%
- Net unit change last year
- 3-yr CAGR
- -3.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 28
- Loan volume
- $5.9M
- Median loan
- $221K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into ARCpoint Labs's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 28 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
ARCpoint Labs presents HIGH RISK: a contracting franchise system with pending litigation over disclosure practices, no verified unit economics, and unprotected territories that expose franchisees to internal competition.
Audited financials (Item 21)
Yes · KMS Financial Consulting
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 72 / 100 rating
- 01MEDSystem contraction: 10.1% unit decline YoY (128 units) signals franchisee failure or underperformance
- 02MINORNo Item 19 financial disclosure despite $154,694 average revenue claim — cannot independently verify profitability
- 03HIGHActive litigation on disclosure inadequacy and non-compete enforcement suggests franchisor-franchisee relationship deterioration
- 04MINORUnprotected territory creates direct competition risk; franchisees may cannibalize each other's revenue
- 05MINORLow average revenue ($154,694) against $165,700+ investment requires 2+ years to break even at 7% royalty burden
- 06HIGHGoing concern status FALSE is ambiguous — clarify if franchisor or franchisees at risk
- 07MINORHigh initial investment ($310,420 at top end) with no transparent path to stated $154,694 revenue
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Business count |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 66 hrs
- On-the-job training
- 20 hrs
- POS system
- LEO
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LEO
Item 20 · call current owners
Franchisee Contacts
158 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ARCpoint Labs · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ARCpoint Labs franchise?
The total investment to open a ARCpoint Labs franchise ranges from $166K – $310K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ARCpoint Labs franchise owners earn?
According to Item 19 of the ARCpoint Labs FDD, the average gross sales per unit is $155K. The median is $148K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is ARCpoint Labs's franchise failure rate?
Based on SBA 7(a) loan data, ARCpoint Labs has a charge-off rate of 0.0% across 28 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many ARCpoint Labs franchise locations are there?
As of their most recent FDD filing, ARCpoint Labs has 128 total units in the United States, including 128 franchised units and 4 company-owned units. 16 new units were opened in the latest reporting year.
Is ARCpoint Labs a good franchise to buy?
FranchiseVerdict rates ARCpoint Labs as a D-grade franchise with a risk score of 72 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent ARCpoint Labs, you can request corrections or provide updated information.
Claim this brandOther Healthcare franchises
Compare similar franchise opportunities in the Healthcare category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.