FranchiseVerdict
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FV-01807·MODERATEExcellent81

O44 Method

Health & FitnessFranchising since 2023Website
Investment
$73K – $169K
12th pct Health & Fitn…
Avg revenue
58th pct Health & Fitn…
Royalty
Units
1
2nd pct Health & Fitn…
SBA default

Bottom line

  • Total investment $73K – $169K including a $40K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
O44 Franchising LLC
Incorporated in
California
HQ
121 San Anselmo Avenue, #129, San Anselmo, CA 94960
Auditor
Windes
Audited financials
Franchisor revenue
$0
vs $59K prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 O44 Method unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: fitness
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $73K–$169K
Working capital
$
FDD reports $5K–$20K

Unlevered ROIC · per unit

174%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$233K
EBITDA margin
31.0%
Total invested
$133K
Payback
7 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.

Overview

About

O44 Method franchisees appear to operate fitness or wellness studios using a proprietary training methodology. Day-to-day operations likely involve conducting classes, managing client memberships, scheduling instructors, and maintaining studio facilities while adhering to the O44 Method brand standards and curriculum.

CEO
Carrie Dorr
Founded
2023
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$73K – $169K
All-in to open one unit
Liquid capital
$5K – $20K
Cash you must have on hand
Franchise fee
$40K
Royalty
The greater of 5% of Gross Sales, or $1,000 per month
Ad fund
1.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
3-yr CAGR
-50.0%
Compounded over last 3 years
2023
1+1
Franchised units
2024
0
Franchised units
2025
2
Franchised units

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

Item 20 · 20 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 · 20 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.

No SBA loan data available for this brand.

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

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

Single-unit franchise system with undisclosed financials, high upfront fees, and unproven scalability presents significant validation risk despite protected territory.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINOROnly 1 franchised unit in system with unknown growth trajectory indicates minimal validation of franchise model scalability
  2. 02MEDNo disclosed average revenue or net income data prevents realistic ROI assessment on $72,500-$169,000 investment
  3. 03MINORRoyalty floor of $1,000/month ($12,000 annually) requires minimum $20,000 monthly revenue to break even on royalties alone, creating cash flow risk for underperforming locations
  4. 04MEDHigh franchise fee of $40,000 (55% of minimum total investment) with 5-year term suggests long payback period with limited exit flexibility
  5. 05MEDExtremely limited unit count (1) makes franchisee the beta test for business model rather than joining proven system

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
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
30 hrs
On-the-job training
0 hrs

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

22 numbers

Locked
(801) 530-••••
UT
(402) 471-••••
NE
(512) 475-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

O44 Method · FDD (2025) PDF

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