Medi-Weightloss Franchise Cost, Revenue & Review 2026
- Investment
- $207K – $435K
- Disclosed sales
- $902K
- gross sales, not profit
- SBA charge-off
- 17.6%
- on 48 loans
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 and an ongoing 10.0% royalty[2]. Per the 2024 FDD, average unit revenue was $902K[2]. SBA 7(a) loans show a 17.6% charge-off rate across 48 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: high - issued more than two years ago
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 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $207K – $435K
- 45th pct Healthcare
- Avg gross sales
- $902K
- 19th pct Healthcare
- Royalty
- 10.0%
- 68th pct Healthcare
- Units
- 105
- 62nd pct Healthcare
- SBA charge-off
- 17.6%
- % 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 $207K – $435K including a $45K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $902K/year (median $753K), with an estimated 31% cash-on-cash return (based on Net Income Before Other Expenses).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 17.6% across 48 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +12 franchised outlets in the latest year (15 opened, 3 closed); 16 signed but not yet open (Item 20).
- 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)
- FDD Item 1, page 8 of the 2024 FDD
- Ultimate parent
- Audax Management Company, LLC
- FDD Item 1, page 8 of the 2024 FDD
- 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 is about typical for a healthcare franchise (near the category median).
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
- 10.0%
- Set by a formula · typical 6–8%
- 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 |
|---|---|
| Royalty | 10.0% of gross sales |
| 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 33% above the healthcare norm.
Source: FDD 2024 · 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 Medi-Weightloss 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 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
$361K
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
FDD-reported earnings
The FDD reports $181K as Net Income Before Other Expenses. This is a disclosed figure, not our estimate — we publish no modelled profit for Medi-Weightloss.
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 Medi-Weightloss 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 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 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: 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 outlets
- vs category median 20 · large
- Range (low → high)
- $190K→$2.7MCited, not corroborated — printed on page 62 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- 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 median of 8.0%.
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 medians
How Medi-Weightloss 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 105
- Opened
- 15
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 16
- 0.15 per open outlet · Item 20 Table 5
- Projected new
- 16
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
89 current owners across 22 states; 5 former (terminated, transferred or not renewed) listed separately.
- FL 15
- MA 10
- NC 8
- CT 7
- TX 7
- GA 5
- IL 5
- VA 5
- MI 4
- LA 3
- NJ 3
- PA 3
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- 17.6%
- on 48 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)
- 82.4%
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Medi-Weightloss from SBA 7(a) FOIA data.
- Principal loss rate
- 2.4%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 8.04%
- Avg chargeoff amount
- $94K
- Lender concentration
- 37.5%
- Job velocity
- 3.8 per $100K
- NAICS benchmark
- 17.6%
- NAICS 812191
- Jobs supported
- 439
Top SBA lendersTop lender holds 38% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 18 | $3.0M | N/A |
| 2 | Stearns Bank National Association | 13 | $2.5M | 18.2% |
| 3 | Brookline Bank, a Division of Beacon Bank and Trust | 2 | $296K | 0.0% |
| 4 | INTRUST Bank, National Association | 2 | $118K | 0.0% |
| 5 | United Community Bank | 2 | $1.3M | N/A |
| 6 | Cadence Bank | 2 | $614K | N/A |
| 7 | Idaho Central CU | 2 | $175K | N/A |
| 8 | First Mid Bank & Trust, National Association | 1 | $150K | 0.0% |
| 9 | Celtic Bank Corporation | 1 | $100K | 100.0% |
| 10 | Live Oak Banking Company | 1 | $1.7M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MIMichigan | 6 | 0 | -- |
| FLFlorida | 5 | 1 | 33.3% |
| PAPennsylvania | 5 | 0 | 0.0% |
| GAGeorgia | 4 | 1 | 50.0% |
| TXTexas | 4 | 0 | 0.0% |
| VAVirginia | 4 | 0 | -- |
| AZArizona | 3 | 1 | 100.0% |
| KSKansas | 2 | 0 | 0.0% |
| LALouisiana | 2 | 0 | -- |
| MAMassachusetts | 2 | 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 17.6% — 10% above the 16.0% national norm, i.e. higher 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total franchisor revenue of $25,272,269 for FY ended 12/31/2023 disclosed in Item 8 (franchisee required purchases/leases were $11,069,979, ~44%). Item 21 audited financial statements (Exhibit B) are present by reference but not extractable as text (scanned/image), so balance-sheet figures, net income, and auditor name are unavailable.
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 56 / 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 territory |
| 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
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.
Who owns Medi-Weightloss?
Medi-Weightloss is franchised by Medi-Weightloss Franchising USA, LLC. Its parent company is Medi-Weightloss Buyer, Inc. (MWBI); Medi-Weightloss Intermediate Holdings, Inc. (MWIH); Medi-Weightloss Group Holdings, L.P. (MGH). The ultimate parent named in the FDD is Audax Management Company, LLC. Source: FDD Item 1, 2024 filing.
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 17.6% across 48 loans, meaning 17.6% 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 B-grade franchise with a verdict score of 56 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.