RCG Behavioral Health NetworkFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A RCG Behavioral Health Network franchise requires a total initial investment of $282K – $584K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.0M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $282K – $584K
- 53rd pct Healthcare
- Avg gross sales
- $2.0M
- 41st pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 3
- 11th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.7x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
80% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $282K – $584K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.0M/year, with an estimated 80% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 33/100.
- 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
- Legal entity
- RCG Behavioral Health Franchising, Inc.
- Ultimate parent
- RCG Behavioral Health Network, LLC
- CEO title
- Chief Visionary Officer
- Sherman A. Adkins, Jr.
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- VA
- HQ
- 911 Sturbridge Drive, Richmond, VA 23236
- Auditor
- Naper CPA Group
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
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).
- CEO
- Sherman A. Adkins, Jr.
- Headquarters
- VA
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Rent and Lease Security Deposit | $5K | $17K | |
| Utilities | $500 | $2K | |
| Leasehold Improvements | $100K | $250K | |
| Market Introduction Program | $4K | $11K | |
| Furniture, Fixtures, and Equipment | $28K | $55K | |
| Computer Systems | $7K | $10K | |
| Insurance | $2K | $15K | |
| Vehicle | $2K | $20K | |
| Signage | $2K | $15K | |
| Office Expenses | $2K | $3K | |
| Licenses and Permits | $400 | $900 | |
| Dues and Subscriptions | $1K | $3K | |
| Professional Fees (lawyer, accountant, etc.) | $1K | $3K | |
| Travel, lodging and meals for initial training | $3K | $6K | |
| Additional funds (for first 3 months) | $75K | $125K | |
| Total initial investment | $282K | $584K |
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.
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
$367K
18.0% margin
Unlevered ROIC
69%
EBITDA / total invested capital
Payback
17 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $282K – $584K
- Near category avg vs category
- Liquid capital req'd
- $75K – $125K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 1.3 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 |
| Technology fee | $700 |
| Training fee | $75 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $346K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 79.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historic Affiliate Performance
- Sample size
- 3 units
- vs category median 12 · small
- Range (low → high)
- $1.4M→$2.7M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
Revenue is 4.7x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Healthcare averages
How RCG Behavioral Health Network Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- 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
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
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 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.
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.
Risk analysis
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 33 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population-based radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 100,000 |
| 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 | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 76 hrs
- On-the-job training
- 32 hrs
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- POS system
- Kareo, Paylocity, Salesforce, Tableau, Rethink, QuickBooks, Google for Business
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Kareo, Paylocity, Salesforce, Tableau, Rethink, QuickBooks, Google for Business
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RCG Behavioral Health Network · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RCG Behavioral Health Network franchise?
The total investment to open a RCG Behavioral Health Network franchise ranges from $282K – $584K, 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 RCG Behavioral Health Network franchise owners earn?
According to Item 19 of the RCG Behavioral Health Network FDD, the average gross sales per unit is $2.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is RCG Behavioral Health Network's franchise failure rate?
SBA 7(a) loan charge-off data is not available for RCG Behavioral Health Network (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 RCG Behavioral Health Network franchise locations are there?
As of their most recent FDD filing, RCG Behavioral Health Network has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is RCG Behavioral Health Network a good franchise to buy?
FranchiseVerdict rates RCG Behavioral Health Network as a A-grade franchise with a risk score of 33 out of 100, 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.
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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.