Bottom line
- Total investment $95K – $285K including a $49K franchise fee.
- Average unit revenue of $461K/year. Estimated payback in 0.8 years.
- Rated MODERATE with a risk score of 63/100.
- 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 REHABNEEDS unit return on the cash you put in?
Unlevered ROIC · per unit
48%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 REHABNEEDS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.9M purchase
Total debt
$5.5M
SBA $3.5M + senior + seller note
Overview
About
RehabNeeds franchisees operate medical rehabilitation supply and equipment distribution centers, serving physical therapy clinics, hospitals, and home health agencies with orthopedic devices, mobility aids, and recovery products. Day-to-day operations include customer relationship management, inventory management, order fulfillment, and sales activities within a protected territory.
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 · 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 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage micro-franchise with unsubstantiated financial claims, escalating royalty structures, and insufficient unit density to validate the business model or franchisor stability.
Score breakdown · what drove the 63 / 100 rating
- 01MEDOnly 4 units system-wide indicates extremely limited track record and minimal franchisor operational infrastructure
- 02HIGHNo Item 19 financial performance representation (Going Concern = False) means franchisor won't substantiate the $461K avg revenue claim
- 03MINOREscalating minimum royalties ($1K→$2K→$3K) combined with 6% revenue share creates dual burden that could exceed 8%+ of gross revenue by Year 3
- 04MINORMassive investment range spread ($94.6K–$285.3K) suggests either highly variable startup costs or lack of standardized operations
- 05MINORMicro-franchise system (4 units) with unknown growth trajectory raises sustainability and franchisor viability concerns
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
REHABNEEDS · FDD (2025) PDF