Recovery LabFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Recovery Lab franchise requires a total initial investment of $367K – $503K, including a $39K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $746K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $367K – $503K
- 59th pct Healthcare
- Avg gross sales
- $746K
- 21st 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
50% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $367K – $503K including a $39K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $746K/year, with an estimated 50% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 38/100.
- Auditor disclosed a going-concern note, which 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
- Recovery Lab Franchising LLC
- Ultimate parent
- The First Recovery Lab LLC
- CEO title
- Founder, Managing Member and Chief Executive Officer
- Jose Luis “Louie” Zuniga
- CEO experience
- 9 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 8351 Rochester Ave., Suite 108, Rancho Cucamonga, California 91730
- Auditor
- Velez Hardy
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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.
- CEO
- Jose Luis “Louie” Zuniga
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $39K | $39K | |
| Travel and Living Expenses While Trainingnot refundable | $3K | $9K | |
| Real Estate/Lease (3 months + deposit)not refundable | $24K | $40K | |
| Build-Out/Leasehold Improvementsnot refundable | $40K | $80K | |
| Major Studio Equipmentnot refundable | $165K | $175K | |
| Minor Equipment and Suppliesnot refundable | $5K | $8K | |
| Merchandise/Sales Itemsnot refundable | $6K | $10K | |
| Fixtures and Furnishingsnot refundable | $25K | $50K | |
| Office Equipment and Suppliesnot refundable | $2K | $3K | |
| Signagenot refundable | $8K | $15K | |
| Insurance - 3 monthsnot refundable | $1K | $2K | |
| Utility Depositsnot refundable | $0 | $400 | |
| Business Licenses and Permitsnot refundable | $100 | $400 | |
| Computer System, including POS Systemnot refundable | $3K | $4K | |
| Technology Fees - 2 monthsnot refundable | $400 | $400 | |
| Professional Fees/Servicesnot refundable | $1K | $7K | |
| Grand Opening Expensesnot refundable | $35K | $35K | |
| Additional Funds - 3 monthsnot refundable | $10K | $25K | |
| Development Fee (Area Development Agreement)not refundable | $59K | $59K | |
| Total initial investment | $426K | $562K |
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
$134K
18.0% margin
Unlevered ROIC
30%
EBITDA / total invested capital
Payback
3.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $367K – $503K
- Near category avg vs category
- Liquid capital req'd
- $10K – $25K
- Better than avg vs category
- Franchise fee
- $39K – $39K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.0 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 | $200 |
| Training fee | $250 |
| Transfer fee | $20K |
| Renewal fee | $0 |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $746K
- Per unit, per year
- Median gross sales
- N/A
- Avg net income
- $218K
- Cash-on-cash
- 50.2%
- Based on Net Income / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 12 · small
- Range (low → high)
- $663K→$829K
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
vs Healthcare averages
How Recovery Lab 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
- Multi-unit owners
- 10.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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 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 loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Velez Hardy⚠ Going-concern note flagged
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 38 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Bernardino County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 26 hrs
- Training location
- On-site and franchisor location
- Time to open
- 2 mo
- From signing to launch
- POS system
- Approved business management and POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Approved business management and POS system
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Recovery Lab · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Recovery Lab franchise?
The total investment to open a Recovery Lab franchise ranges from $367K – $503K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Recovery Lab franchise owners earn?
According to Item 19 of the Recovery Lab FDD, the average gross sales per unit is $746K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Recovery Lab's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Recovery Lab (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 Recovery Lab franchise locations are there?
As of their most recent FDD filing, Recovery Lab has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is Recovery Lab a good franchise to buy?
FranchiseVerdict rates Recovery Lab as a A-grade franchise with a risk score of 38 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.