Auxo MedicalFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Auxo Medical franchise requires a total initial investment of $100K – $138K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. Per the 2022 FDD, average unit revenue was $2.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $100K – $138K
- 19th pct Healthcare
- Avg gross sales
- $2.4M
- 43rd pct Healthcare
- Royalty
- 8.0%
- 45th pct Healthcare
- Units
- 4
- 14th pct Healthcare
- SBA default
- N/A
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
Each dollar invested generates 20.2x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $100K – $138K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $2.4M/year. Estimated payback in 0.4 years (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 49/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Auxo Medical Franchising, LLC
- CEO title
- Chief Executive Officer
- Jay Crabtree
- CEO experience
- 17 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- VA
- HQ
- 5401 Distributor Drive, Richmond, Virginia 23225
- Auditor
- Steve Walls & Associates, PLLC
- Audited financials
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
- Headquarters
- VA
- Founded
- 2021
- FDD year
- 2022
- States available
- 4
FDD Item 7 · 2022 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Construction and Leasehold Improvements | $0 | $1K | |
| Lease Deposits - 3 Months | $0 | $750 | |
| Furniture, Fixtures and Equipment | $3K | $12K | |
| Service Vehicle | $3K | $5K | |
| Computer, Software and Point of Sales System | $1K | $3K | |
| Grand Opening Marketing | $15K | $15K | |
| Initial Inventory | $4K | $17K | |
| Utility Deposits | $55 | $155 | |
| Insurance Deposits - 3 Months | $4K | $5K | |
| Travel for Initial Training | $3K | $7K | |
| Professional Fees | $3K | $5K | |
| Licenses and Permits | $50 | $500 | |
| Printing Stationary and Office Supplies | $175 | $350 | |
| Additional Funds - 3 months | $14K | $17K | |
| Total initial investment | $100K | $138K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$360K
15.0% margin
Unlevered ROIC
268%
EBITDA / total invested capital
Payback
4 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $100K – $138K
- Better than avg vs category
- Liquid capital req'd
- $14K – $17K
- Better than avg vs category
- Franchise fee
- $50K – $130K
- Near category avg vs category
- 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 FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $296K
- Reported as P&L Bottom Line in FDD Item 19
- Item 19 type
- Company Owned Outlets
- Sample size
- 3 units
- vs category median 12 · small
- Range (low → high)
- $192K→$4.6M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
Revenue is 20.2x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Healthcare averages
How Auxo Medical Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 25%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
ITEM 3 (Litigation) section not provided in document excerpt
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Steve Walls & Associates, PLLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 rating
- 01MINOROnly 4 units system-wide with unknown growth trajectory suggests early-stage or stagnant franchise
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 03MEDNo Item 19 (average unit economics) disclosed — cannot validate the $295k average net income claim
- 04MINORDual royalty structure (8% services + 5% products) creates complexity; actual burden depends on service/product mix
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Number of surgery centers |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Henrico County, Virginia |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
ITEM 3 (Litigation) section not provided in document excerpt
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 62 hrs
- Training location
- Richmond, Virginia
- POS system
- Salesforce/Stripe
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Salesforce/Stripe
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Auxo Medical franchise?
The total investment to open a Auxo Medical franchise ranges from $100K – $138K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Auxo Medical franchise owners earn?
According to Item 19 of the Auxo Medical FDD, the average gross sales per unit is $2.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Auxo Medical's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Auxo Medical (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Auxo Medical franchise locations are there?
As of their most recent FDD filing, Auxo Medical has 4 total units in the United States, including 1 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Auxo Medical a good franchise to buy?
FranchiseVerdict rates Auxo Medical as a A-grade franchise with a risk score of 49 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.
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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.