RehabneedsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A REHABNEEDS franchise requires a total initial investment of $95K – $285K, including a $49K franchise fee. Per the 2025 FDD, average unit revenue was $461K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $95K – $285K
- 16th pct Healthcare
- Avg gross sales
- $461K
- 10th pct Healthcare
- Royalty
- N/A
- Units
- 4
- 14th 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.
118% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $95K – $285K including a $49K franchise fee.
- Average unit revenue of $461K/year, with an estimated 118% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 21/100.
- 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
- Legal entity
- REHABNEEDS Franchise LLC
- Incorporated in
- MD
- HQ
- 2401 Research Blvd #101 Rockville MD 20850
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Dr. Arya Khoshkhou
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Management and Technology System | $1K | $3K | |
| 3 months Real Estate/Rent and Deposit | — | — | |
| Insurance (12 months) | — | — | |
| Monitoring & Security System | $200 | $1K | |
| Grand Opening Marketing | $1K | $5K | |
| On-Site Training Fee | $0 | $2K | |
| Additional Funds (3 months) | — | — | |
| Initial Franchise Fee | $25K | $25K | |
| Travel and Living Expenses While Training | $1K | $5K | |
| 3 Months Real Estate/Rent and Deposit | $2K | $4K | |
| Leasehold Improvements | $0 | $5K | |
| Equipment | $5K | $10K | |
| Mill Works and Furniture | $3K | $6K | |
| Signage | $500 | $3K | |
| Technology/POS System/Computer System | $500 | $2K | |
| Initial Office Supplies | $500 | $1K | |
| Licenses and Permits | $200 | $400 | |
| Professional Fees | $3K | $10K | |
| Utility Deposits | $500 | $1K | |
| Total initial investment | $43K | $82K |
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
$78K
17.0% margin
Unlevered ROIC
37%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $95K – $285K
- Better than avg vs category
- Liquid capital req'd
- $12K – $30K
- Better than avg vs category
- Franchise fee
- $25K – $49K
- Better than avg vs category
- Royalty
- Greater of $1,000 per month or 6% of Gross Revenue (Year …
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 0.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $5K |
| Renewal fee | $12K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $461K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $224K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 117.7%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 4 units
- vs category median 12 · small
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
vs Healthcare averages
How Rehabneeds Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
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 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $49,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 21 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
REHABNEEDS · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a REHABNEEDS franchise?
The total investment to open a REHABNEEDS franchise ranges from $95K – $285K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do REHABNEEDS franchise owners earn?
According to Item 19 of the REHABNEEDS FDD, the average gross sales per unit is $461K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is REHABNEEDS's franchise failure rate?
SBA 7(a) loan charge-off data is not available for REHABNEEDS (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 REHABNEEDS franchise locations are there?
As of their most recent FDD filing, REHABNEEDS has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is REHABNEEDS a good franchise to buy?
FranchiseVerdict rates REHABNEEDS as a A-grade franchise with a risk score of 21 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.