Renue®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A RENUE® franchise requires a total initial investment of $182K – $226K, including a $75K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $658K[2]. SBA 7(a) loans show a 22.2% charge-off rate across 12 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $182K – $226K
- 9th pct Lodging
- Avg gross sales
- $658K
- 0th pct Lodging
- Royalty
- 10.0%
- 50th pct Lodging
- Units
- 26
- 24th pct Lodging
- SBA default
- 22.2%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging 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
Each dollar invested generates 3.2x in gross revenue, well above the typical 1.5-2.5x range.
22.2% of SBA loans charged off across 12 loans, above the 16% franchise average.
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $182K – $226K including a $75K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $658K/year (median $400K).
- Verdict D (Below Average) with a risk score of 73/100. SBA loan charge-off rate of 22.2% across 12 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Renue Systems Development Corp., Inc.
- CEO title
- President, Chief Executive Officer, Secretary, Treasurer
- David J. Grossman
- CEO experience
- 14 yrs
- Years in role or industry
- Incorporated in
- IL
- HQ
- 1147 North Main Street, Lombard, Illinois 60148
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $2.0M
- vs $2.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- related to us by common ownership
- of ours and related to us by common ownership
Other brands the franchisor or its parent operates (Item 1).
Overview
About
RENUE® franchisees operate wellness/skincare service centers offering treatments and products. Day-to-day operations include client consultations, administering services (likely non-invasive beauty/health treatments), managing inventory, scheduling appointments, and handling sales of related retail products.
- CEO
- David J. Grossman
- Headquarters
- IL
- Founded
- 2000
- FDD year
- 2026
- States available
- 16
FDD Item 7 · 2026 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Initial Equipment, Chemicals, Supplies and Training Package Feenot refundable | $55K | $55K | |
| Shipping Costs for Initial Equipment, Chemicals and Supplies | $0 | $4K | |
| Storage Space - 3 Months | $2K | $5K | |
| Wages, Travel and Living Expenses During Training | $2K | $5K | |
| Vehicle | $30K | $50K | |
| Computer Equipment, Software and Accessories | $500 | $2K | |
| Insurance - 3 Months | $3K | $5K | |
| Accounting and Legal Professional Fees | $1K | $3K | |
| Business Licenses | $100 | $200 | |
| Additional Funds for First 3 Months | $15K | $25K | |
| Total initial investment | $182K | $226K |
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
$59K
9.0% margin
Unlevered ROIC
26%
EBITDA / total invested capital
Payback
3.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $182K – $226K
- Better than avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Better than avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Training fee | $500 |
| Transfer fee | $37K |
| Renewal fee | $7K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $658K
- Per unit, per year
- Median gross sales
- $400K
- Item 19 type
- Historical financial information
- Sample size
- 20 units
- vs category median 100 · small
- Range (low → high)
- $145K→$1.9M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 0 / 5 · above
Compared against 245 Lodging brands
vs Lodging averages
How Renue® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 1
- 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
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- +4.2%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- 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.
- Total loans
- 12
- Loan volume
- $2.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 22.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 66.7%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Renue®'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
A 22.2% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Slow-growing micro-franchise with compliance history, undisclosed profitability, and mandatory minimums creating elevated investment risk in a stagnant system.
Litigation (Item 3)
Washington Consent Order S-11-0789-11-CO01 issued by State of Washington Department of Financial Institutions, Securities Division on September 30, 2011. Required compliance with registration and delivery of Franchise Disclosure Document sections. Reimbursement of investigative costs required; no fines or assessments. Related to franchise offer and sale by prior owner and subsequent offer before Washington franchise registration obtained.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
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 73 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — unable to assess true profitability or validate the $657,806 avg revenue claim
- 02MEDMinimal system growth (4.2% YoY) with only 26 units suggests weak brand momentum and limited proven scalability
- 03MINORMonthly royalty minimums ($1,000-$2,500/year 2+) create fixed cost burden regardless of sales performance, problematic for slow-ramp locations
- 04MINOR2011 Washington State Consent Order indicates historical compliance issues with franchise disclosure regulations
- 05MINORHigh franchise fee ($74,500) relative to small system size and slow growth creates significant sunk cost risk
- 06HIGHGoing Concern = False not explicitly stated as positive, creating ambiguity about franchisor financial health
- 07MINORAverage revenue of $657,806 on $182,350-$226,200 investment yields only 2.9-3.6x payback, marginal for franchise model
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Geographic Area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 1 |
View Item 3 litigation summary
Washington Consent Order S-11-0789-11-CO01 issued by State of Washington Department of Financial Institutions, Securities Division on September 30, 2011. Required compliance with registration and delivery of Franchise Disclosure Document sections. Reimbursement of investigative costs required; no fines or assessments. Related to franchise offer and sale by prior owner and subsequent offer before Washington franchise registration obtained.
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RENUE® · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RENUE® franchise?
The total investment to open a RENUE® franchise ranges from $182K – $226K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RENUE® franchise owners earn?
According to Item 19 of the RENUE® FDD, the average gross sales per unit is $658K. The median is $400K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is RENUE®'s franchise failure rate?
Based on SBA 7(a) loan data, RENUE® has a charge-off rate of 22.2% across 12 loans, meaning 22.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many RENUE® franchise locations are there?
As of their most recent FDD filing, RENUE® has 26 total units in the United States, including 25 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is RENUE® a good franchise to buy?
FranchiseVerdict rates RENUE® as a D-grade franchise with a risk score of 73 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.