Bottom line
- Total investment $199K – $821K including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- Emerging franchise — only 2 years of franchising with 4 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 Red Light Method unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Overview
About
Red Light Method franchisees operate fitness studios specializing in red light therapy and wellness services. Day-to-day operations include client sessions, equipment maintenance, membership management, retail sales, and studio administration. The business model relies on recurring memberships and class bookings.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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
Extremely early-stage franchise with minimal unit count, undisclosed financials, franchisor going concern issues, and high capital requirements create substantial risk of total investment loss.
Score breakdown · what drove the 72 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory suggests minimal market validation and high failure risk
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests underperformance
- 03HIGHGoing concern status is FALSE, indicating potential financial instability at franchisor level
- 04MEDHigh investment range ($199k-$821k) with no disclosed earnings creates severe ROI opacity
- 05MINORMinimum $2,000 monthly royalty floor regardless of sales creates cash flow pressure for struggling locations
- 06MINOR10-year term is lengthy commitment to unproven concept with only 4 existing 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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Red Light Method · FDD (2025) PDF