RCG Behavioral Health Network
Bottom line
- Total investment $282K – $584K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.2M/year (median $2.5M). Estimated payback in 1.3 years.
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 3 years of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
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 RCG Behavioral Health Network unit return on the cash you put in?
Unlevered ROIC · per unit
94%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 RCG Behavioral Health Network units return on equity?
Equity IRR · 5-yr
24.9%
3.04× MOIC
Year-1 DSCR
3.39×
EBITDA ÷ debt service
Equity required
$19.5M
on $34.9M purchase
Total debt
$15.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate behavioral health service delivery centers providing mental health and substance abuse treatment services to patients. Daily operations include clinical care coordination, therapist/counselor management, patient intake and billing, regulatory compliance reporting, and care outcome tracking. Revenue is generated through insurance billing, private pay, and government programs (Medicaid/Medicare).
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 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
Extremely early-stage or stalled behavioral health franchise with minimal operating units, undisclosed financials, and uncertain franchisor stability presents elevated risk despite decent unit-level profitability metrics.
Score breakdown · what drove the 60 / 100 rating
- 01MEDOnly 3 units in the entire franchise system indicates extremely limited scale and network effects
- 02HIGHNo going concern status suggests franchisor may lack financial stability or growth trajectory
- 03MEDItem 19 (financial performance representations) not disclosed, preventing validation of the $345,564 avg net income claim
- 04MINORHigh initial investment ($282k-$584k) relative to only 3 existing units raises questions about franchisor viability and unit economics
- 05HIGHLack of disclosed litigation history with such small unit count may indicate franchisees lack resources to litigate or system is too new to assess
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RCG Behavioral Health Network · FDD (2025) PDF