FranchiseVerdict
Auxo Medical logo
FV-00209·MODERATEExcellent91FDD 2022

Auxo Medical

Health & Wellness - OtherFranchising since 2021Website
Investment
$100K – $138K
23rd pct Other
Avg revenue
$1.9M
55th pct Other
Royalty
8.0%
59th pct Other
Units
4
20th pct Other
SBA default
—

Bottom line

  • Total investment $100K – $138K including a $50K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $1.9M/year (median $986K). Estimated payback in 0.4 years.
  • Rated MODERATE with a risk score of 64/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Auxo Medical Franchising, LLC
Incorporated in
Virginia
HQ
5401 Distributor Drive, Richmond, Virginia 23225
Auditor
Steve Walls & Associates, PLLC
Audited financials

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Auxo Medical unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,929,572
Franchisor take · royalty + ad fund
Royaltytyp 6–8%
%
Ad fundtyp 3–5%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $100K–$138K
Working capital
$
FDD reports $14K–$17K

Unlevered ROIC · per unit

287%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.
Store EBITDA · annual
$386K
EBITDA margin
20.0%
Total invested
$134K
Payback
4 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Auxo Medical units return on equity?

Edit assumptions

Equity IRR · 5-yr

27.2%

3.33× MOIC

Year-1 DSCR

3.01×

EBITDA ÷ debt service

Equity required

$12.6M

on $25.1M purchase

Total debt

$12.5M

SBA $5.0M + senior + seller note

SBA 7(a) request ($12.5M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Auxo Medical franchisees operate healthcare service delivery and/or medical product distribution centers, likely focused on home health, DME (durable medical equipment), or telehealth services. Day-to-day operations involve patient acquisition, service delivery/product fulfillment, compliance with healthcare regulations, billing/insurance processing, and local marketing.

CEO
Jay Crabtree
Founded
2021
FDD year
2022
States available
4

Item 7 · what it costs

The Vitals

Total investment
$100K – $138K
All-in to open one unit
Liquid capital
$14K – $17K
Cash you must have on hand
Franchise fee
$50K
Royalty
8.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical
Payback period
0.4 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.9M
Per unit, per year
Median gross sales
$986K
Item 19 type
Company Owned Outlets
Sample size
3 units
vs category median 12 · small
Range (low → high)
$192K→$4.6M
Cohort dispersion
Transparency
10 / 5
vs category median 4 / 5 · above
Revenue rank55th
vs Health & Wellness - Other peers
Investment cost rank23th
Lower investment ranks lower (better)
Royalty rate rank59th
Lower royalty = lower percentile (better)
Unit count rank20th
vs Health & Wellness - Other peers
Risk score rank62th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
4
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
25%
vs corporate-owned
2020
1+1
Franchised units
2021
0
Franchised units
2022
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 4 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

4

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

Early-stage medical franchise with franchisor going concern issues, minimal unit base, and undisclosed unit economics presents meaningful risk despite reasonable unit-level profitability claims.

Score breakdown · what drove the 64 / 100 rating

  1. 01MINOROnly 4 units system-wide with unknown growth trajectory suggests early-stage or stagnant franchise
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
  3. 03MEDNo Item 19 (average unit economics) disclosed — cannot validate the $295k average net income claim
  4. 04MINORDual royalty structure (8% services + 5% products) creates complexity; actual burden depends on service/product mix
  5. 05MINORHigh initial investment ($99k-$137k) relative to only 4 existing units raises execution risk questions

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Number of surgery centers
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Virginia

Item 11

Training & Operations

Classroom training
18 hrs
On-the-job training
62 hrs
POS system
Salesforce/Stripe
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

No franchisee contacts available for Auxo Medical. This brand's FDD Item 20 did not include a contactable franchisee list.

FDD download

Auxo Medical · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above