FranchiseVerdict
MD Hyperbaric Center logo
FV-01598·MODERATEExcellent95

MD Hyperbaric Center

Health & Wellness - OtherFranchising since 2024Website
Investment
$133K – $522K
34th pct Other
Avg revenue
$360K
9th pct Other
Royalty
8.0%
59th pct Other
Units
12
43rd pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $133K – $522K including a $50K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $360K/year (median $360K). Estimated payback in 1.1 years.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • Emerging franchise — only 2 years of franchising with 12 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
MDH FRANCHISOR LLC
Parent company
MD Hyperbaric Holding Inc.
Incorporated in
Delaware
HQ
1 Carter Road, West Orange, NJ 07052
Auditor
Whitley Penn LLP
Audited financials
Franchisor revenue
$75K
vs $186K prior year

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 MD Hyperbaric Center unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $359,531
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
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: $133K–$522K
Working capital
$
FDD reports $38K–$40K

Unlevered ROIC · per unit

22%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$79K
EBITDA margin
22.0%
Total invested
$366K
Payback
56 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 MD Hyperbaric Center units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.1M

on $5.4M purchase

Total debt

$4.3M

SBA $2.7M + senior + seller note

Overview

About

Franchisees operate hyperbaric oxygen therapy centers providing FDA-regulated medical treatments for wound healing, dive injuries, and off-label conditions. Daily operations include patient intake, chamber operation/monitoring, medical compliance, insurance billing, and marketing. Revenue depends on patient volume, treatment protocols, and payer mix (Medicare, commercial insurance, cash).

CEO
Christopher Neal
Founded
2023
FDD year
2026
States available
4

Item 7 · what it costs

The Vitals

Total investment
$133K – $522K
All-in to open one unit
Liquid capital
$38K – $40K
Cash you must have on hand
Franchise fee
$50K
Royalty
8.0%
Gross Sales · typical 6–8%
Ad fund
0.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
1.1 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$360K
Per unit, per year
Median gross sales
$360K
Item 19 type
Gross Sales and EBITDA
Sample size
1 units
vs category median 12 · small
Range (low → high)
$360K$360K
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank9th
vs Health & Wellness - Other peers
Investment cost rank34th
Lower investment ranks lower (better)
Royalty rate rank59th
Lower royalty = lower percentile (better)
Unit count rank43th
vs Health & Wellness - Other peers
Risk score rank51th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
12
Opened
3
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
8
Corporate units in the system
% franchised
33%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
2024
4+9
Franchised units
2025
1
Franchised units
2026
0
Franchised units

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

Item 20 · 12 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 12 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

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

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

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

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Rapidly scaling medical franchise with undisclosed financials, high fees relative to net margins, and atypical absence of litigation disclosure creates material due diligence gaps.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORExplosive unit growth (300% YoY) suggests either aggressive recruitment or unsustainable expansion — difficult to validate quality of new franchisees
  2. 02HIGHNo Item 19 (Going Concern = False) means franchisor declined to disclose financial performance data, preventing independent verification of claimed average revenue/net income
  3. 03MINORHigh investment range ($133K-$521K) with only 12 units total creates concentration risk and limits comparative performance data
  4. 04MINOR8% royalty on $359K average revenue = $28,760/year in fees, compressing margins significantly given capital intensity of hyperbaric equipment
  5. 05HIGHMedical/clinical franchise with no disclosed litigation is unusual — hyperbaric therapy carries regulatory, insurance, and liability exposure that should be scrutinized
  6. 06MEDFranchise fee ($50K) represents 37% of minimum investment, indicating front-loaded costs with limited franchisor skin-in-the-game

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius
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
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New Jersey

Item 11

Training & Operations

Classroom training
80 hrs
On-the-job training
40 hrs
POS system
Company Point of Sale System
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.

Franchisee contacts

18 numbers

Locked
(970) 208-••••
CO
(412) 556-••••
PA
(214) 393-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

MD Hyperbaric Center · FDD (2026) PDF

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