The CoveryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Covery franchise requires a total initial investment of $260K – $383K, including a $43K franchise fee. Per the 2025 FDD, average unit revenue was $709K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $260K – $383K
- 50th pct Healthcare
- Avg gross sales
- $709K
- 20th pct Healthcare
- Royalty
- N/A
- Units
- 9
- 28th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
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
The system contracted 13% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $260K – $383K including a $43K franchise fee.
- Average unit revenue of $709K/year.
- Verdict B (Above Average) with a risk score of 62/100.
- Auditor 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
- Legal entity
- R-WELLNESS, LLC
- Incorporated in
- LA
- HQ
- 16161 Perkins Road, Baton Rouge, Louisiana 70810
- Auditor
- LAPORTE
- Audited financials
- Franchisor revenue
- $768K
- vs $723K prior year
- ⚠ 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.
Affiliated brands
- Ageless Athletes RX
Other brands the franchisor or its parent operates (Item 1).
Overview
About
The Covery operates as a B2B software/services platform providing fraud detection and risk management solutions to e-commerce and fintech clients. Franchisees likely manage client relationships, deliver platform implementation, provide ongoing support, and handle local sales and account management within their protected territory.
- CEO
- Daniel Stickler
- Headquarters
- LA
- Founded
- 2020
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $43K | $43K |
| Working capital (3–6 mo) | $15K | $25K |
| Equipment, build-out, other | $202K | $315K |
| Total initial investment | $260K | $383K |
Source: The Covery 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$113K
16.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $260K – $383K
- Near category avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $43K – $43K
- Better than avg vs category
- Royalty
- The greater of $2,500 per month or 6.75% of Gross Revenues
- Ad fund
- Currently 1.75% of Gross Revenues
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $204 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $15K – $25K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $709K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 5 units
- vs category median 12 · small
- Range (low → high)
- $475K→$943K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 201 Healthcare brands
vs Healthcare averages
How The Covery Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 11.1%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Net growth (yr3)
- -12.5%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 6
- Franchisor's next-year forecast
- Continuity rate
- 90.0%
- Units that stayed open
- Ceased ops
- 5.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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 loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $1.9M
- Median loan
- $931K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Covery's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This early-stage fraud prevention franchise lacks disclosed profitability metrics, has minimal system size, and imposes substantial fixed royalty obligations that could strain franchisee cash flow.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $42,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · LAPORTE⚠ Going-concern note flagged
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: No
Score breakdown · what drove the 62 / 100 rating
- 01MEDNet Income not disclosed in FDD Item 19 — cannot assess true profitability or ROI against $259.5k-$382.5k investment
- 02MEDOnly 9 units system-wide with modest 12.5% YoY growth suggests limited scale and unproven unit economics
- 03MINORHigh royalty floor of $2,500/month ($30k annually) creates cash flow pressure on underperforming locations
- 04MINORSignificant gap between average revenue ($708.5k) and royalty obligations (6.75% + floor) — unclear net income after all costs
- 05MINORSmall franchise system increases risk of franchisor viability and support infrastructure
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 | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radial/Population |
| Protected territory | Yes |
| Territory population | 100,000 |
| 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 | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Louisiana |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 35 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- ZENOTI
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ZENOTI
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Covery · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Covery franchise?
The total investment to open a The Covery franchise ranges from $260K – $383K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Covery franchise owners earn?
According to Item 19 of the The Covery FDD, the average gross sales per unit is $709K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Covery's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Covery (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 The Covery franchise locations are there?
As of their most recent FDD filing, The Covery has 9 total units in the United States, including 3 franchised units and 9 company-owned units.
Is The Covery a good franchise to buy?
FranchiseVerdict rates The Covery as a B-grade franchise with a risk score of 62 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.