Bottom line
- Total investment $653K – $859K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.1M/year.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 C3 Wellness unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 C3 Wellness units return on equity?
Equity IRR · 5-yr
25.0%
3.05× MOIC
Year-1 DSCR
3.37×
EBITDA ÷ debt service
Equity required
$19.0M
on $34.3M purchase
Total debt
$15.3M
SBA $5.0M + senior + seller note
Overview
About
C3 Wellness franchisees operate wellness centers providing fitness, nutrition, and health coaching services. Daily operations include managing client memberships, conducting group fitness classes, delivering one-on-one wellness consultations, and maintaining facility operations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extremely early-stage wellness franchise with going concern issues, minimal unit count, undisclosed profitability, and insufficient franchisor revenue to sustain operations—high probability of system failure.
Score breakdown · what drove the 70 / 100 rating
- 01MEDOnly 2 operating units indicates extremely limited system size and unproven scalability
- 02MEDNo disclosed net income despite $2.1M average revenue raises profitability concerns
- 03HIGHGoing Concern status of FALSE suggests potential financial instability at franchisor level
- 04MINORUnknown unit growth trajectory indicates lack of transparency or stagnant expansion
- 05MINORHigh initial investment ($652k-$858k) relative to only 2 franchises operating creates ROI uncertainty
- 06MINORAbsence of Item 19 (Financial Performance Representations) prevents income validation
- 07MINOR6% royalty on $2.1M average = $128,741 annual franchisor revenue from only 2 units is insufficient to support infrastructure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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.
FDD download
C3 Wellness · FDD (2024) PDF