Transformations Center for Weight Loss
Bottom line
- Total investment $121K – $247K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $240K/year (median $241K).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 1 year 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 Transformations Center for Weight Loss unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Transformations Center for Weight Loss units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$385K
on $1.9M purchase
Total debt
$1.5M
SBA $1.0M + senior + seller note
Overview
About
Franchisees operate weight loss centers offering nutrition counseling, body composition analysis, behavioral coaching, and potentially medical weight loss programs (e.g., injections, supplements). Day-to-day operations include client consultations, progress tracking, meal planning, one-on-one or group sessions, retail product sales, and membership account management.
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-franchise system with going concern issues, undisclosed profitability, and insufficient unit validation creates substantial risk of franchisor failure and franchisee financial loss.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates minimal scale and validation
- 02MEDNo average net income disclosed despite $240K average revenue — suggests profitability concerns or franchisor opacity
- 03HIGHGoing Concern = False is critical red flag suggesting franchisor financial instability or restructuring
- 04MINOR6% royalty on $240K average revenue yields only $14,400 annually — questions franchisor's sustainable revenue model
- 05MINORHigh initial investment range ($120.5K–$247K) relative to 4-unit system suggests unproven unit economics
- 06HIGHNo litigation disclosure is positive but unreliable indicator given going concern status and small unit count
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Transformations Center for Weight Loss · FDD (2025) PDF