Ellie Mental Health Franchise Cost, Revenue & Review 2026
- Investment
- $189K – $445K
- Disclosed sales
- $818K
- gross sales, not profit
- SBA charge-off
- 9.1%
- on 113 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ellie Mental Health is a healthcare franchise operating outpatient mental-health and teletherapy clinics. Franchisees run a clinic managing a network of licensed therapists, patient intake, scheduling, and insurance billing.
FranchiseVerdict summary · 2026
A Ellie Mental Health franchise requires a total initial investment of $189K – $445K, including a $60K franchise fee and an ongoing 7.5% royalty[2]. Per the 2026 FDD, average unit revenue was $818K[2]. SBA 7(a) loans show a 9.1% charge-off rate across 113 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $189K – $445K
- 40th pct Healthcare
- Avg gross sales
- $818K
- Net sales17th pct Healthcare
- Royalty
- 7.5%
- 52nd pct Healthcare
- Units
- 249
- 73rd pct Healthcare
- SBA charge-off
- 9.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $189K – $445K including a $60K franchise fee, 7.5% ongoing royalty.
- RETURNSAverage unit revenue of $818K/year (median $765K).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 9.1% across 113 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +9 franchised outlets in the latest year (43 opened, 34 closed); 13 signed but not yet open (Item 20).
- LEGAL12 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Ellie Fam LLC
- Parent company
- EMH PEP Holdco, LLC
- FDD Item 1, page 12 of the 2026 FDD
- Ultimate parent
- Princeton Equity Group, LLC
- FDD Item 1, page 12 of the 2026 FDD
- Predecessor
- Ellie Family Services, PLLP (EFS); Ellie MSO, LLC
- Prior franchisor entity
- 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
- $28.5M
- vs $21.5M prior year
Same owner · FDD Item 1, page 12
6 other brands on this site name Princeton Equity Group, LLC as parent or ultimate parent in their own FDD.
Portfolio: Princeton Equity Group (private-equity sponsor)
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Michael DiMarco
- Headquarters
- MN
- Founded
- 2019
- FDD year
- 2026
- States available
- 38
Can you afford it, and what does the money buy?
Entry cost is about typical for a healthcare franchise (near the category median).
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $60K | $92K |
| Equipment, build-out, other | $69K | $293K |
| Total initial investment | $189K | $445K |
Source: Ellie Mental Health 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $189K – $445K
- Middle of category vs category
- Liquid capital req'd
- $60K – $92K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 7.5%
- Set by a formula · typical 6–8%
- Ad fund
- $100 per month per Qualified Clinician and Qualified Pres…
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Technology fee | $365 |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 7.5% of rev |
What do units actually make?
Average unit sales run 21% above the healthcare norm.
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Ellie Mental Health until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$393K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Ellie Mental Health unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $818K
- Per unit, per year
- Median gross sales
- $765K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 188 outlets
- vs category median 20 · large
- Range (low → high)
- $46K→$2.9MCited, not corroborated — printed on page 68 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $818K/year in gross sales. Revenue-to-investment ratio: 2.6x.
Fee burden
Total ongoing fee load of 7.5% (near the Healthcare median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 36.1% CAGR over 3 years across 249 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare medians
How Ellie Mental Health Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 249
- Opened
- 43
- Last reporting year
- Closed
- 34
- Terminated
- 29
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +36.1%
- Net unit change over 3 years
- 3-yr CAGR
- +36.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 29
- Not renewed
- 0
- Transferred
- 6
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 13
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 85
- Franchisor's next-year forecast
- 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 12 · 38 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.
38
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.
- Total loans
- 113
- Loan volume
- $21.8M
- Median loan
- $223K
- 50th percentile
- Charge-off rate
- 9.1%
- on 113 loans · 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
- Typical loan rate
- 9.7%
- avg rate to borrowers
- vs industry
- 1.4%
- brand is above its industry ↑
- Jobs supported
- 2,345
- 10.8 per loan
- Lender concentration
- 86%
- top lender's share
Borrower mix: 96% went to startups / new businesses, 4% to established operators
Top lenders financing Ellie Mental Health franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Ellie Mental Health from SBA 7(a) FOIA data.
- Principal loss rate
- 0.2%
- Avg SBA guarantee
- 65%
- Avg interest rate
- 9.66%
- Avg chargeoff amount
- $40K
- Lender concentration
- 85.8%
- Job velocity
- 10.8 per $100K
- NAICS benchmark
- 1.4%
- NAICS 621330
- Jobs supported
- 2,345
Top SBA lendersTop lender holds 86% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 97 | $15.7M | 9.1% |
| 2 | Meridian Bank | 4 | $1.9M | N/A |
| 3 | Northwest Bank | 2 | $585K | N/A |
| 4 | Pinnacle Bank | 2 | $673K | N/A |
| 5 | United Bank of Philadelphia | 1 | $331K | N/A |
| 6 | The Bancorp Bank National Association | 1 | $305K | N/A |
| 7 | Craft Bank | 1 | $245K | N/A |
| 8 | U.S. Bank, National Association | 1 | $622K | N/A |
| 9 | Georgia's Own Credit Union | 1 | $469K | N/A |
| 10 | Citizens Bank | 1 | $400K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 18 | 1 | 25.0% |
| FLFlorida | 13 | 0 | 0.0% |
| GAGeorgia | 10 | 0 | -- |
| MOMissouri | 7 | 0 | -- |
| PAPennsylvania | 7 | 0 | -- |
| CTConnecticut | 4 | 0 | 0.0% |
| ILIllinois | 4 | 0 | -- |
| MAMassachusetts | 4 | 0 | -- |
| NCNorth Carolina | 4 | 0 | -- |
| NJNew Jersey | 4 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 9.1% — 43% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Boyum & Barenscheer, PLLP
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 55 / 100 verdict
- 01HIGHActive litigation from franchisees alleging misrepresentation of critical backend services (EHR, billing, credentialing) — core to operations
- 02MINORFranchisor pursuing aggressive non-compete enforcement suggests franchisee dissatisfaction and potential exit disputes
- 03MINORHigh unit growth rate (31.1% YoY) may mask underlying churn; 255 units is still small system vulnerable to reputation damage
- 04MINORHealthcare compliance exposure: mental health licensing, telehealth regulations, HIPAA liability not clearly addressed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 75,000 |
| Online sales rightsℹ | 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 |
| Termination groundsℹ | 9 |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota |
| Jury trial waiver | Yes |
| Governing law | MN |
| Litigation count | 12 |
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 0 hrs
- Training location
- Minnesota (corporate headquarters or affiliate location) or virtual
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- EHR Systems
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: EHR Systems
Item 20 · call current owners
Franchisee Contacts
214 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $189K – $445K, 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 $818K. The median is $765K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Ellie Mental Health?
Ellie Mental Health is franchised by Ellie Fam LLC. Its parent company is EMH PEP Holdco, LLC. The ultimate parent named in the FDD is Princeton Equity Group, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Ellie Mental Health FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ellie Mental Health FDD and qualifies whose outlets they describe.
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 9.1% across 113 loans, meaning 9.1% 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 249 total units in the United States, including 249 franchised units and 0 company-owned units. 43 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 B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.