Rehabneeds Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
RehabNeeds is a healthcare franchise distributing rehabilitation and physical therapy equipment and supplies to clinics and home health providers. Franchisees run local operations, managing inventory, sales, and accounts.
FranchiseVerdict summary · 2026
A REHABNEEDS franchise requires a total initial investment of $95K – $285K, including a $49K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $95K – $285K
- 14th pct Healthcare
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 11th pct Healthcare
- Units
- 4
- 16th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · 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 $95K – $285K including a $49K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports Historical Company-Owned Outlet average performance (Statement of Income and Certain Expenses, unaudited) rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- REHABNEEDS Franchise LLC
- CEO title
- Co-Founder & Chief Executive Officer
- Dr. Arya Khoshkhou
- Incorporated in
- Maryland
- HQ
- 2401 Research Blvd #101, Rockville, Maryland 20850
- Auditor
- DA Advisory Group PLLC
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Dr. Arya Khoshkhou
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 54% below the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $95K – $285K
- Top 40% of category vs category
- Liquid capital req'd
- $12K – $30K
- Top 40% of category vs category
- Franchise fee
- $49K – $49K
- Top 40% of category vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $5K |
| Renewal fee | $12K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
REHABNEEDS did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one REHABNEEDS unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
60%
Above the 30–60% band. Verify revenue is per-unit average
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: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Item 19 type
- Historical Company-Owned Outlet average performance (Statement of Income and Certain Expenses, unaudited)
- Sample size
- 4
- vs category median 20 · small
- Source filing
- FDD 2025
- 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 8.0% (near the Healthcare average).
Disclosure
Item 19 reports Historical Company-Owned Outlet average performance (Statement of Income and Certain Expenses, unaudited) rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Rehabneeds Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- 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
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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)
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?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pre-opening (is_pre_opening=true) PT/rehab franchisor with an early-stage going-concern note (distress_is_early_stage=true) — treated as minor per rubric. Zero revenue and near-zero net loss (-$387) reflect a brand-new franchisor. Audited and Item 19 disclosed; 0 franchised units.
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ⓘ Going-concern language present, but this is an early-stage franchisor with limited operating history — common for new systems and not necessarily a sign of distress.
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 45 / 100 verdict
- 01MEDPre-opening franchisor, limited history
- 02MINORGoing-concern note is early-stage (distress_is_early_stage=true) — minor weight
- 03MINORZero revenue, tiny net loss -$387
- 04MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 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
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?
REHABNEEDS does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the REHABNEEDS 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 REHABNEEDS FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 45 out of 100 (higher is better), 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.
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.