Bottom line
- Total investment $367K – $503K including a $39K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $768K/year (median $813K). Estimated payback in 2.0 years.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 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
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 Recovery Lab unit return on the cash you put in?
Unlevered ROIC · per unit
39%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Recovery Lab units return on equity?
Equity IRR · 5-yr
39.7%
5.33× MOIC
Year-1 DSCR
2.13×
EBITDA ÷ debt service
Equity required
$3.6M
on $12.3M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
Overview
About
Recovery Lab franchisees operate recovery and wellness facilities (likely physical therapy, recovery services, or wellness centers) that generate approximately $768K in annual gross revenue. Day-to-day operations likely include managing client sessions, facility maintenance, staff scheduling, marketing, and billing while remitting 6% royalties to corporate.
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 · 13 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, unproven franchise system with minimal unit count, undocumented financial claims, and unclear growth prospects presents elevated risk despite positive going concern status.
Score breakdown · what drove the 53 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory indicates extremely early-stage franchise with unproven scalability
- 02MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $768,058 avg revenue and $218,368 net income claims
- 03MINORHigh initial investment ($366,950–$502,600) relative to only 3 comparable locations creates difficulty validating ROI assumptions
- 04MINORRoyalty structure (6% of gross sales) combined with unknown unit economics means franchisees cannot validate true profitability claims
- 05MINORMicro-franchise size (3 units) suggests franchisor may lack operational maturity, proven systems, and financial stability to support franchisees
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Recovery Lab · FDD (2026) PDF