Medi-Weightloss Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Medi-Weightloss is a healthcare franchise operating physician-supervised medical weight-loss clinics offering diet plans, medications, and coaching. Franchisees run a clinic managing providers, patient programs, and supplement sales.
FranchiseVerdict summary · 2026
A Medi-Weightloss franchise requires a total initial investment of $207K – $435K, including a $45K franchise fee. Per the 2024 FDD, average unit revenue was $902K[2]. SBA 7(a) loans show a 6.3% charge-off rate across 48 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $207K – $435K
- 45th pct Healthcare
- Avg gross sales
- $902K
- 17th pct Healthcare
- Royalty
- N/A
- Units
- 105
- 63rd pct Healthcare
- SBA charge-off
- 6.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · 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 $207K – $435K including a $45K franchise fee.
- RETURNSAverage unit revenue of $902K/year (median $753K), with an estimated 31% cash-on-cash return (based on Net Income Before Other Expenses).
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better). SBA loan charge-off rate of 6.3% across 48 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 22.2% CAGR over 3 years with 105 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Medi-Weightloss Franchising USA, LLC
- Parent company
- Medi-Weightloss Buyer, Inc. (MWBI); Medi-Weightloss Intermediate Holdings, Inc. (MWIH); Medi-Weightloss Group Holdings, L.P. (MGH)
- Ultimate parent
- Audax Management Company, LLC
- CEO title
- Chief Executive Officer
- Kenneth Hall
- Incorporated in
- FL
- HQ
- 509 S. Hyde Park Avenue, Tampa, Florida 33606
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $25.3M
- vs $25.3M prior year
Affiliated brands
- Medi IP
- of Audax Management Company
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kenneth Hall
- Headquarters
- FL
- Founded
- 2008
- FDD year
- 2024
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical healthcare franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Initial Packagenot refundable | $49K | $54K | |
| Training Feenot refundable | $5K | $5K | |
| Furniture, Fixtures, Equipment and Suppliesnot refundable | $15K | $35K | |
| 3 Months' Lease Payments | $7K | $15K | |
| Leasehold Improvementsnot refundable | $30K | $125K | |
| Architecture Fees and Permitsnot refundable | $1K | $5K | |
| Computer Systemnot refundable | $2K | $3K | |
| Security Deposits | $4K | $10K | |
| Additional Inventory and Suppliesnot refundable | $1K | $5K | |
| Signagenot refundable | $6K | $8K | |
| Licenses and Permitsnot refundable | $500 | $2K | |
| Insurancenot refundable | $4K | $15K | |
| Professional Feesnot refundable | $2K | $10K | |
| Training Travel Expensesnot refundable | $4K | $8K | |
| Start-Up Marketing Campaignnot refundable | $3K | $3K | |
| Local Advertising - 3 Monthsnot refundable | $9K | $18K | |
| Optional IV Therapy Programnot refundable | $0 | $10K | |
| Additional Funds - 3 Monthsnot refundable | $20K | $60K | |
| Total initial investment | $207K | $435K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $207K – $435K
- Middle of category vs category
- Liquid capital req'd
- $20K – $60K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- Greater of $2,250 per month or 10% of monthly Gross Sales
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 3.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $350 |
| Training fee | $5K |
| Transfer fee | $19K |
| Renewal fee | $5K |
| Inventory (initial) | $1K – $5K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 36% below the healthcare norm.
Source: FDD 2024 · Item 19
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
$162K
18.0% margin
Unlevered ROIC
45%
EBITDA / total invested capital
Payback
27 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $181K as Net Income Before Other Expenses. Our model estimates $162K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Net Income Before Other Expenses deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Medi-Weightloss unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
45%
Within the 30–60% "attractive franchise" band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Medi-Weightloss units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.9M purchase
Total debt
$7.9M
SBA $5.0M + senior + seller note
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: 2024 FDD
Financial Performance
- Avg gross sales
- $902K
- Per unit, per year
- Median gross sales
- $753K
- Avg net income before other expenses
- $181K
- Reported as Net Income Before Other Expenses in FDD Item 19
- Cash-on-cash
- 31.0%
- Based on Net Income Before Other Expenses / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales + Net Income Before Other Expenses
- Sample size
- 54
- vs category median 20 · large
- Range (low → high)
- $190K→$2.7M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 9 / 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 $902K/year in gross sales. Median is $753K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.8x.
Fee burden
Total ongoing fee load of 11.0% — above the Healthcare average of 8.8%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 22.2% CAGR over 3 years across 105 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 averages
How Medi-Weightloss Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 105
- Opened
- 15
- Last reporting year
- Closed
- 0
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 17.0%
- Company-owned
- 17
- Corporate units in the system
- % franchised
- 84%
- vs corporate-owned
- Net growth (3-yr)
- +22.2%
- Net unit change over 3 years
- 3-yr CAGR
- +22.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 29
- Closed (3yr)
- 1
- Terminated (3yr)
- 13
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 7.8%
- Franchisor-initiated terminations
- Ceased ops
- 1.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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.
Available to sell in · Item 12
- Illinois
- Indiana
- Michigan
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 48
- Loan volume
- $11.6M
- Median loan
- $165K
- 50th percentile
- Charge-off rate
- 6.3%
- 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)
- 93.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 3
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 21.0%
- brand beats franchise avg ↓
- Jobs supported
- 439
- 3.8 per loan
- Lender concentration
- 38%
- top lender's share
Borrower mix: 85% went to startups / new businesses, 15% to established operators
Franchise vs independent — in diet and weight reducing centers, franchised businesses charge off at 21.0% vs 23.2% for independents — franchising is associated with 9% lower SBA default risk in this category.
Vintage analysis
Medi-Weightloss charge-off rate by loan vintage
Top lenders financing Medi-Weightloss franchisees
Showing 3 of 14 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.
Premium insight
SBA Lending Report
Deep-dive into Medi-Weightloss'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
- 12-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 6.3% — 61% 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
Medi-Weightloss presents moderate-to-cautious risk due to undisclosed financial performance data, high royalty burden, historical litigation, and niche market vulnerability—requiring thorough validation before $207K–$435K commitment.
Litigation (Item 3)
4 consolidated cases (Kikta/Vita Settlement, settled June 9, 2014): franchisor sued former franchisees for breach of transfer/franchise agreement; former owner counterclaimed for unpaid compensation; affiliate Vita Nutritionals sued former president for breach of fiduciary duty; former president counterclaimed against Vita principals. All settled with $300K payment to Kikta and dismissal of all claims.
Largest disclosed settlement: $300,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 76 / 100 verdict
- 01MEDModerate unit growth (15.8% YoY) is positive but system is still small (105 units) with limited scale; vulnerability to economic downturns in weight-loss sector
- 02HIGH2014 litigation with former franchisee (Evelyn Kikta) involved contract disputes, trademark infringement, and employment claims — signals potential franchisor-franchisee relationship friction and IP vulnerability
- 03MINORWeight-loss industry faces regulatory scrutiny (FDA, FTC) and reputational risk; no mention of clinical validation or compliance framework in franchise overview
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 125,000 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Tampa, FL |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 4 |
View Item 3 litigation summary
4 consolidated cases (Kikta/Vita Settlement, settled June 9, 2014): franchisor sued former franchisees for breach of transfer/franchise agreement; former owner counterclaimed for unpaid compensation; affiliate Vita Nutritionals sued former president for breach of fiduciary duty; former president counterclaimed against Vita principals. All settled with $300K payment to Kikta and dismissal of all claims.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 167 hrs
- Training location
- Tampa, Florida or another location designated by franchisor
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks and Advantage
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks and Advantage
Item 20 · call current owners
Franchisee Contacts
94 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Medi-Weightloss · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Medi-Weightloss franchise?
The total investment to open a Medi-Weightloss franchise ranges from $207K – $435K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Medi-Weightloss franchise owners earn?
According to Item 19 of the Medi-Weightloss FDD, the average gross sales per unit is $902K. The median is $753K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Medi-Weightloss 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 Medi-Weightloss FDD and qualifies whose outlets they describe.
What is Medi-Weightloss's franchise failure rate?
Based on SBA 7(a) loan data, Medi-Weightloss has a charge-off rate of 6.3% across 48 loans, meaning 6.3% 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 Medi-Weightloss franchise locations are there?
As of their most recent FDD filing, Medi-Weightloss has 105 total units in the United States, including 88 franchised units and 17 company-owned units. 15 new units were opened in the latest reporting year.
Is Medi-Weightloss a good franchise to buy?
FranchiseVerdict rates Medi-Weightloss as a A-grade franchise with a verdict score of 76 out of 100 (higher is better), 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.
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.