ProMD Health Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
ProMD Health is a medical aesthetics franchise offering anti-aging treatments like Botox, fillers, and hormone therapy. Franchisees run the clinics, managing licensed providers, patient care, and treatment sales.
FranchiseVerdict summary · 2026
A ProMD Health franchise requires a total initial investment of $197K – $511K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.1M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $197K – $511K
- 43rd pct Healthcare
- Avg gross sales
- $2.1M
- 25th pct Healthcare
- Royalty
- 6.0%
- 11th pct Healthcare
- Units
- 12
- 33rd pct Healthcare
- SBA charge-off
- N/A
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 $197K – $511K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $2.1M), with an estimated 69% cash-on-cash return (based on NET PROFIT (before taxes)).
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ProMD Development Group, Inc.
- CEO title
- President & Founder
- Scott R. Melamed
- Incorporated in
- Maryland
- HQ
- 166 Defense Highway, Suite 302, Annapolis, MD 21401
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $582K
- vs $888K prior year
Overview
About
- CEO
- Scott R. Melamed
- Headquarters
- MD
- Founded
- 2018
- FDD year
- 2025
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 15% below the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $150K |
| Equipment, build-out, other | $97K | $311K |
| Total initial investment | $197K | $511K |
Source: ProMD 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
- $197K – $511K
- Middle of category vs category
- Liquid capital req'd
- $50K – $150K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 1.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $30K |
| Renewal fee | $25K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 48% above the healthcare norm.
Source: FDD 2025 · 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
$383K
18.0% margin
Unlevered ROIC
84%
EBITDA / total invested capital
Payback
14 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $444K as NET PROFIT (before taxes). Our model estimates $383K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because NET PROFIT (before taxes) 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 ProMD Health unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
84%
Above the 30–60% band. Verify revenue is per-unit average
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 ProMD Health units return on equity?
Equity IRR · 5-yr
27.8%
3.41× MOIC
Year-1 DSCR
2.93×
EBITDA ÷ debt service
Equity required
$11.4M
on $23.4M purchase
Total debt
$12.0M
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: 2025 FDD
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $2.1M
- Avg net profit (before taxes)
- $444K
- Reported as NET PROFIT (before taxes) in FDD Item 19
- Cash-on-cash
- 69.1%
- Based on NET PROFIT (before taxes) / 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
- Average and Median for Corporate and Franchise outlets
- Sample size
- 4
- vs category median 20 · small
- Range (low → high)
- $1.1M→$3.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
Revenue is 6.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
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 $2.1M/year in gross sales. Revenue-to-investment ratio: 6.0x.
Fee burden
Total ongoing fee load of 7.0% — below 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. Sample size of 4 units — treat as directional only.
Operator retention
System expanding at 600.0% CAGR over 3 years across 12 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 ProMD Health Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 3
- 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
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 58%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 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.
4
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $1.3M
- Median loan
- $641K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (2 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Clean medical-aesthetics FDD: no litigation, no bankruptcy, no going-concern, audited financials, Item 19 disclosed with strong $2.1M average gross sales. 12 units (7 franchised), 0% turnover. No financial-weakness flags present.
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 63 / 100 verdict
- 01MINORZero litigation, no bankruptcy, no going-concern, no financial distress
- 02MEDAudited, item19_disclosed=true, avg gross sales $2,127,280
- 03MINOR0% turnover, growing unit base
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 48 hrs
- POS system
- Authorize.net
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Authorize.net
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ProMD Health · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ProMD Health franchise?
The total investment to open a ProMD Health franchise ranges from $197K – $511K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ProMD Health franchise owners earn?
According to Item 19 of the ProMD Health FDD, the average gross sales per unit is $2.1M. The median is $2.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the ProMD 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 ProMD Health FDD and qualifies whose outlets they describe.
What is ProMD Health's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ProMD 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 ProMD Health franchise locations are there?
As of their most recent FDD filing, ProMD Health has 12 total units in the United States, including 7 franchised units and 5 company-owned units. 3 new units were opened in the latest reporting year.
Is ProMD Health a good franchise to buy?
FranchiseVerdict rates ProMD Health as a A-grade franchise with a verdict score of 63 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.