Recovery Lab Franchise Cost, Revenue & Review 2026
- Investment
- $367K – $503K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Recovery Lab is a wellness franchise offering cryotherapy, hyperbaric therapy, and assisted stretching for recovery. Franchisees run the centers, managing equipment, sessions, and memberships.
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]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $367K – $503K
- 63rd pct Healthcare
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 3
- 11th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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 $367K – $503K including a $39K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 disclosed $768K average from 3 affiliate-owned outlets. This is franchisor-operated data, not franchisee results.
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 2 signed but not yet open (Item 20).
- DATAItem 19 reports revenue alongside profit figures rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Recovery Lab Franchising LLC
- Ultimate parent
- The First Recovery Lab LLC
- FDD Item 1, page 7 of the 2026 FDD
- 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
- California
- HQ
- 8351 Rochester Ave., Suite 108, Rancho Cucamonga, California 91730
- Auditor
- Velez Hardy
- Audited financials
Overview
About
- CEO
- Jose Luis "Louie" Zuniga
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 35% above the typical healthcare franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown18 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 | |
| Total initial investment | $367K | $503K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $367K – $503K
- Middle of category vs category
- Liquid capital req'd
- $10K – $25K
- Top 40% of category vs category
- Franchise fee
- $39K – $39K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
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 |
| Inventory (initial) | $6K – $10K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Recovery Lab is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Recovery Lab unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 FDD
Financial Performance
Item 19 disclosed $768K average from 3 affiliate-owned outlets. This is franchisor-operated data, not franchisee results.
Company-owned outlets only - not franchisee performance
- Item 19 type
- historic gross sales and net operating income for 3 affiliate-owned outlets
- Sample size
- 3
- vs category median 20 · small
- Range (low → high)
- $663K→$829KCited, not corroborated — printed on page 53 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Healthcare median).
Disclosure
Item 19 reports revenue alongside profit figures rather than annual gross sales, so unit revenue is not directly comparable.
Multi-unit rate
Only 10% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How Recovery Lab Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
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
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 10.0%
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.67 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- AZ 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Velez Hardy
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 44 / 100 verdict
- 01MINOR3 units company-owned, 0 franchised; audited + Item 19
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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| 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
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisor works with franchisee; independent third-party commercial real estate brokerage firm designated by Franchisor is required for site selection
- Franchisor financing
- Not offered
- Item 10
- 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
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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?
Item 19 of the Recovery Lab FDD discloses outlet figures from $663K to $829K but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Recovery Lab?
Recovery Lab is franchised by Recovery Lab Franchising LLC. The ultimate parent named in the FDD is The First Recovery Lab LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Recovery Lab 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 Recovery Lab FDD and qualifies whose outlets they describe.
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.
Is Recovery Lab a good franchise to buy?
FranchiseVerdict rates Recovery Lab as a C-grade franchise with a verdict score of 44 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.