Ellie Mental HealthFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ellie Mental Health franchise requires a total initial investment of $392K – $680K, including a $60K franchise fee and an ongoing 7.5% royalty[2]. Per the 2025 FDD, average unit revenue was $850K[2]. SBA 7(a) loans show a 0.9% charge-off rate across 113 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $392K – $680K
- 60th pct Healthcare
- Avg gross sales
- $850K
- 23rd pct Healthcare
- Royalty
- 7.5%
- 43rd pct Healthcare
- Units
- 255
- 70th pct Healthcare
- SBA default
- 0.9%
- 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
Only 0.9% of 113 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 255 to 183 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $392K – $680K including a $60K franchise fee, 7.5% ongoing royalty.
- Average unit revenue of $850K/year (median $760K).
- Verdict A (Top Quintile) with a risk score of 23/100. SBA loan charge-off rate of 0.9% across 113 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ellie Fam LLC
- Parent company
- EMH PEP Holdco, LLC
- CEO title
- Chief Executive Officer
- Michael DiMarco
- Incorporated in
- MN
- HQ
- 1345 Mendota Heights Road, Suite 800, Mendota Heights, Minnesota 55120
- Auditor
- Boyum & Barenscheer, PLLP
- Audited financials
- Franchisor revenue
- $8.2M
- vs $21.5M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate teletherapy/mental health clinics, managing licensed clinician networks and patient care delivery. Day-to-day operations include scheduling, patient intake, billing/insurance claims, EHR management, and clinical oversight. The franchisor provides business systems, credentialing support, billing infrastructure, and marketing templates.
- CEO
- Michael DiMarco
- Headquarters
- MN
- Founded
- 2019
- FDD year
- 2025
- States available
- 38
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $177K | $231K |
| Equipment, build-out, other | $155K | $389K |
| Total initial investment | $392K | $680K |
Source: Ellie Mental Health 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
$123K
14.5% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
6.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $392K – $680K
- Near category avg vs category
- Liquid capital req'd
- $177K – $231K
- Below avg, review vs category
- Franchise fee
- $20K – $60K
- Near category avg vs category
- Royalty
- 7.5%
- Gross Revenue · typical 6–8%
- Ad fund
- $100 per month per each Qualified Clinician and Qualified…
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Technology fee | $150 |
| Training fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $850K
- Per unit, per year
- Median gross sales
- $760K
- Item 19 type
- Actual
- Sample size
- 167 units
- vs category median 12 · large
- Range (low → high)
- $75K→$2.7M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
vs Healthcare averages
How Ellie Mental Health Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 255
- Opened
- 75
- Last reporting year
- Closed
- 18
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 7.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +31.1%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 14
- Transfer rate
- 2.3%
- Owners selling to other franchisees
- Continuity rate
- 98.8%
- Units that stayed open
- Termination rate
- 1.2%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 37 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 113
- Loan volume
- $21.8M
- Median loan
- $223K
- 50th percentile
- Charge-off rate
- 0.9%
- 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)
- 90.9%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ellie Mental Health'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 15 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.9% charge-off rate across 113 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Growing but litigation-plagued mental health franchise with undisclosed profitability, misrepresentation claims around core business infrastructure, and franchisor-initiated legal action indicating deteriorating franchisee relationships.
Litigation (Item 3)
Four pending cases involving former and current franchisees. Case 1 (AAA 01-24-0006-6544, July 2024): Ashley Garner, Meagan Ziegenbein, PowerW3 LLC v. Ellie Fam LLC and Erin Pash - claims of misrepresentations regarding EHR Systems, billing, credentialing; damages $937,015 plus $13,525; hearing scheduled November 2025. Case 2 (AAA 01-25-0001-7551, April 2025): Timothy Reagan and Jill Reagan v. Ellie Fam LLC, EMH Pep Holdco LLC, Princeton Equity Group LLC, ForThree LLC, Erin Pash, Chris Pash - claims of misrepresentations regarding shared services, EHR, billing, credentialing; demand $5,000,000+; cross-claims asserted. Case 3 (Federal 0:24-cv-04407, March 2025): Ellie Fam LLC v. CBUS Brain Health LLC, Flyers of Orange LLC, Darren Bassel, Amy Jill Bassel (originally filed Ramsey County November 2024, removed to federal court) - enforcement of post-termination covenants and non-compete; counterclaims alleging violations of Minnesota Franchise Act and Ohio Business Opportunity Plans Act. Case 4 (AAA 01-25-0002-4259, May 2025): Steve M. LeBlanc, Hailey B. Estelle, Be Better Utah LLC v. Ellie Fam LLC, Ellie Family Services PLLP, Erin Pash, Christopher Pash, ForThree LLC, Rachel Stender - claims of misrepresentations regarding shared services, EHR, billing, credentialing; violations of Minnesota Franchise Act, fraud, misrepresentation, breach of contract; demand $894,115+.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Boyum & Barenscheer, PLLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 23 / 100 rating
- 01HIGHActive litigation from franchisees alleging misrepresentation of critical backend services (EHR, billing, credentialing) — core to operations
- 02MINORNet income deliberately withheld from FDD Item 19 despite $850K average revenue disclosure — opacity suggests inconsistent profitability
- 03MINORFranchisor pursuing aggressive non-compete enforcement suggests franchisee dissatisfaction and potential exit disputes
- 04MINORHigh unit growth rate (31.1% YoY) may mask underlying churn; 255 units is still small system vulnerable to reputation damage
- 05MINORInitial investment spread ($392K-$680K) with 7.5% royalty on collected (not gross) revenue creates cash flow pressure for slow-paying practices
- 06MINORHealthcare compliance exposure: mental health licensing, telehealth regulations, HIPAA liability not clearly addressed
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 | Radius / Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 8 |
View Item 3 litigation summary
Four pending cases involving former and current franchisees. Case 1 (AAA 01-24-0006-6544, July 2024): Ashley Garner, Meagan Ziegenbein, PowerW3 LLC v. Ellie Fam LLC and Erin Pash - claims of misrepresentations regarding EHR Systems, billing, credentialing; damages $937,015 plus $13,525; hearing scheduled November 2025. Case 2 (AAA 01-25-0001-7551, April 2025): Timothy Reagan and Jill Reagan v. Ellie Fam LLC, EMH Pep Holdco LLC, Princeton Equity Group LLC, ForThree LLC, Erin Pash, Chris Pash - claims of misrepresentations regarding shared services, EHR, billing, credentialing; demand $5,000,000+; cross-claims asserted. Case 3 (Federal 0:24-cv-04407, March 2025): Ellie Fam LLC v. CBUS Brain Health LLC, Flyers of Orange LLC, Darren Bassel, Amy Jill Bassel (originally filed Ramsey County November 2024, removed to federal court) - enforcement of post-termination covenants and non-compete; counterclaims alleging violations of Minnesota Franchise Act and Ohio Business Opportunity Plans Act. Case 4 (AAA 01-25-0002-4259, May 2025): Steve M. LeBlanc, Hailey B. Estelle, Be Better Utah LLC v. Ellie Fam LLC, Ellie Family Services PLLP, Erin Pash, Christopher Pash, ForThree LLC, Rachel Stender - claims of misrepresentations regarding shared services, EHR, billing, credentialing; violations of Minnesota Franchise Act, fraud, misrepresentation, breach of contract; demand $894,115+.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 0 hrs
- Training location
- Minnesota and Virtual/at home
- Field support
- 0 hrs/yr
- On-site visits per year
- POS system
- EHR Systems
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: EHR Systems
Item 20 · call current owners
Franchisee Contacts
88 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ellie Mental Health · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ellie Mental Health franchise?
The total investment to open a Ellie Mental Health franchise ranges from $392K – $680K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ellie Mental Health franchise owners earn?
According to Item 19 of the Ellie Mental Health FDD, the average gross sales per unit is $850K. The median is $760K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ellie Mental Health's franchise failure rate?
Based on SBA 7(a) loan data, Ellie Mental Health has a charge-off rate of 0.9% across 113 loans, meaning 0.9% 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 Ellie Mental Health franchise locations are there?
As of their most recent FDD filing, Ellie Mental Health has 255 total units in the United States, including 255 franchised units and 0 company-owned units. 75 new units were opened in the latest reporting year.
Is Ellie Mental Health a good franchise to buy?
FranchiseVerdict rates Ellie Mental Health as a A-grade franchise with a risk score of 23 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.