Next Health Franchise Cost, Revenue & Review 2026
- Investment
- $1.6M – $2.2M
- Disclosed sales
- $4.0M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Next Health is a wellness franchise offering IV therapy, hormone optimization, and biohacking and longevity services. Franchisees run the centers, managing clinical staff, treatments, and memberships.
FranchiseVerdict summary · 2026
A Next Health franchise requires a total initial investment of $1.6M – $2.2M, including a $80K franchise fee and an ongoing 9.0% royalty[2]. Per the 2025 FDD, average unit revenue was $4.0M[2]. 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: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ 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
- $1.6M – $2.2M
- 97th pct Senior Care
- Avg gross sales
- $4.0M
- Company-owned only
- Royalty
- 9.0%
- 92nd pct Senior Care
- Units
- 5
- 17th pct Senior Care
- SBA charge-off
- N/A
Quick verdict · Senior Care · color = vs category peers
Green = favorable by >10% vs Senior Care 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 $1.6M – $2.2M including a $80K franchise fee, 9.0% ongoing royalty.
- RETURNSAverage unit revenue of $4.0M/year (company-owned outlets only - not franchisee performance).
- RISKVerdict B (Above average), verdict score 49/100 (higher is better).
- GROWTHNegative, pipeline stalled: 28 agreements signed but not yet open against 5 open outlets (Item 20).
- EARLYEmerging franchise: only 3 years of franchising with 5 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Next Health Franchising, LLC
- Parent company
- Next Health Management Group, Inc.
- FDD Item 1, page 10 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Darshan Shah, MD
- Incorporated in
- DE
- HQ
- 8560 West Sunset Boulevard, Suite 650, West Hollywood, CA 90069
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $38K
- vs $1K prior year
Affiliated brands
- Next Health IP
- LH Franchising
- Next Health International
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Darshan Shah, MD
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 1294% above the typical senior care franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $80K | $80K |
| Working capital (3–6 mo) | $175K | $250K |
| Equipment, build-out, other | $1.4M | $1.8M |
| Total initial investment | $1.6M | $2.2M |
Source: Next Health 2025 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
- $1.6M – $2.2M
- Bottom third — review vs category
- Liquid capital req'd
- $175K – $250K
- Bottom third — review vs category
- Franchise fee
- $80K – $80K
- Bottom third — review vs category
- Royalty
- 9.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $700 |
| Training fee | $8K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $180K – $200K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 277% above the senior care norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2025 · 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 Next 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 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
$2.1M
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 Next 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 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: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $4.0M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Unit Revenue (gross revenue including regulated services, excluding sales tax)
- Sample size
- 3 outlets
- vs category median 22 · small
- Range (low → high)
- $3.1M→$5.7MCited, not corroborated — printed on page 60 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 79 Senior Care 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 $4.0M/year in gross sales. Revenue-to-investment ratio: 2.1x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 10.0% — above the Senior Care median of 7.0%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 3 outlets — treat as directional only.
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 Senior Care medians
How Next Health Compares
Category median of published Senior Care 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 28
- 5.60 per open outlet · Item 20 Table 5
- Projected new
- 28
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
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.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage wellness franchise with minimal operating units, unverified financial claims, and capital-intensive model presents high execution risk despite no litigation.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 total revenues of $38,358 consisted entirely of other operating revenues; franchise fees were $0 (vs $1,446 franchise fees in the inception period ended 12/31/2023). Company reported a net loss of $1,557,686 and a member's deficit of $(1,690,494).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 verdict
- 01MINOROnly 5 units in system with unknown growth trajectory suggests early-stage or stalling franchise
- 02MINOR9% royalty on $4M average revenue = $360K annually, creating cash flow pressure for breakeven franchisees
- 03MEDExtremely limited franchisee sample size (5 units) makes financial averages statistically unreliable and potentially cherry-picked
- 04MINORUnknown growth rate indicates franchisor may not be actively recruiting or expanding, suggesting market validation issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | West Hollywood, CA (or within 50 miles of franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 78 hrs
- Training location
- Next Health Corporate Office, West Hollywood, CA (or another location selected by franchisor)
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Next Health franchise?
The total investment to open a Next Health franchise ranges from $1.6M – $2.2M, with an initial franchise fee of $80K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Next Health franchise owners earn?
According to Item 19 of the Next Health FDD, the average gross sales per unit is $4.0M. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Next Health?
Next Health is franchised by Next Health Franchising, LLC. Its parent company is Next Health Management Group, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Next 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 Next Health FDD and qualifies whose outlets they describe.
What is Next Health's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Next Health (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Next Health franchise locations are there?
As of their most recent FDD filing, Next Health has 5 total units in the United States.
Is Next Health a good franchise to buy?
FranchiseVerdict rates Next Health as a B-grade franchise with a verdict score of 49 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.