In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a NexGenEsis Healthcare franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a NexGenEsis Healthcare franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned NexGenEsis Healthcare outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the NexGenEsis Healthcare franchise opportunity

Section V – Presentation and analysis of NexGenEsis Healthcare’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 gross revenue, cost of goods sold, gross profit, expenses (advertising, rent, payroll, other expenses, Hawaii general excise tax), EBITDA, franchise related adjustments (Royalties, Brand Marketing, local advertising adjustment), and adjusted EBITDA for the four affiliate NexGenEsis Healthcare businesses (“Affiliate Clinics”) that were in operation at least 12 months as of December 31, 2023 along with four Affiliate Clinics that are operated as satellite franchises to two of these Affiliate Clinics (together the “Reporting Group”)

Section VI – Key ratios, comparables, computations, and analyses for the NexGenEsis Healthcare franchise opportunity (exclusive content for Platinum subscribers)

Section I – NexGenEsis Healthcare Franchise Costs

• NexGenEsis Healthcare franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $55,000
• Initial Neuropathy Package:  $3,500
• Modality Equipment Package:  $6,500 to $10,000
• Regenerative Equipment Package:  $15,000 to $35,000
• Furniture, Fixtures, Equipment, and Supplies:  $10,000 to $20,000
• Computer/POS System and Office Supplies and Equipment:  $2,500 to $10,000
• 3 Months’ Lease Payments:  $3,750 to $30,000
• Leasehold Improvements:  $10,000 to $75,000
• Utility and Security Deposits:  $1,500 to $5,000
• Signage:  $2,500 to $5,000
• Licenses and Permits:  $500 to $1,500
• Insurance:  $4,000 to $7,000
• Professional Fees:  $2,000 to $10,000
• Training:  $1,500 to $10,000
• Medical Training:  $0 to $4,495
• Additional Funds for 3 Months:  $50,000 to $80,000
• Total Estimated NexGenEsis Healthcare Franchise Costs:  $168,250 to $361,495

Section II – NexGenEsis Healthcare’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• NexGenEsis Healthcare’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $55,000
• Royalty:  7% of Gross Sales
• Brand Fund Contribution:  1% of monthly Gross Sales
• Local Advertising Payment:  $10,000 per month for the first two months after you open your NexGenEsis Business, and $20,000 each subsequent month
• Local and Regional Advertising Cooperatives:  established by cooperative members, between 0 to 50% of the local advertising requirement

Section III – Number of Franchised and Company-Owned NexGenEsis Healthcare Outlets

Franchised

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  5
• Net Change:  +3

Section IV – News Updates on the NexGenEsis Healthcare Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the NexGenEsis Healthcare Franchise (Item 19, 2024 FDD)

• As of the Issuance Date of the 2024 Disclosure Document, there were ten affiliate and two franchised NexGenEsis Healthcare Businesses in operation. This Item 19 presents financial information for the four affiliate NexGenEsis Healthcare Businesses (“Affiliate Clinics”) that were in operation at least 12 months as of December 31, 2023 along with four Affiliate Clinics that are operated as Satellite Franchises to two of these Affiliate Clinics (together the “Reporting Group”).

• NexGenEsis excluded two non-Satellite Franchises Affiliate Clinics that were not open 12 months as of December 31, 2023.

• The Affiliate Clinics operate under the Healthcare Center Business model as standalone businesses and have reasonably similar operations to NexGenEsis Healthcare franchises, including degree of competition, services or goods sold, and services supplied by NexGenEsis.

• These Affiliate Clinics do not pay Royalties, Brand Fund Contributions, or Technology Fees and are not subject to the Local Advertising Requirement.

• For purposes of this Item 19, “Gross Revenue” means the total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns. All numbers in this Item 19 have been rounded to the nearest dollar.

• The tables below includes information about the Reporting Group for the periods from January 1, 2023 to December 31, 2023 (“Reporting Period”). The financial information is based on actual revenue and expenses. The financial information was prepared from sales records and reports. The numbers have not been audited but NexGenEsis has no reason to doubt their accuracy.

Gross Revenue, Gross Profit, EBITDA, and Adjusted EBITDA for Affiliate Clinics (2023)

Gulfport, Mississippi

Gross Revenue:  $1,075,188

COGS:  $112,609

Gross Profit:  $962,579

Expenses (other than COGS)

• Advertising:  $330,956
• Rent:  $30,000
• Payroll:  $284,616
• Other Expenses:  $107,570
• Hawaii General Excise Tax:  $ –
• Total Expenses (other than COGS):  $753,142

EBITDA:  $209,437

Franchise Related Adjustments

• Royalties:  $75,263
• Brand Marketing:  $10,752
• Local Advertising Adjustment:  $ –

Adjusted EBITDA:  $123,422

Baton Rouge, Louisiana

Gross Revenue:  $322,156

COGS:  $42,573

Gross Profit:  $279,584

Expenses (other than COGS)

• Advertising:  $156,547
• Rent:  $28,928
• Payroll:  $104,660
• Other Expenses:  $35,386
• Hawaii General Excise Tax:  $ –
• Total Expenses (other than COGS):  $325,521

EBITDA:  -$45,937

Franchise Related Adjustments

• Royalties:  $22,551
• Brand Marketing:  $3,222
• Local Advertising Adjustment:  $83,453

Adjusted EBITDA:  -$155,163

Honolulu, Hawaii

Gross Revenue:  $2,022,027

COGS:  $282,503

Gross Profit:  $1,739,524

Expenses (other than COGS)

• Advertising:  $401,347
• Rent:  $111,722
• Payroll:  $479,069
• Other Expenses:  $124,576
• Hawaii General Excise Tax:  $102,843
• Total Expenses (other than COGS):  $1,219,556

EBITDA:  $519,968

Franchise Related Adjustments

• Royalties:  $141,542
• Brand Marketing:  $20,220
• Local Advertising Adjustment:  $ –

Adjusted EBITDA:  $358,206

Bellaire, Texas

Gross Revenue:  $419,444

COGS:  $61,776

Gross Profit:  $357,668

Expenses (other than COGS)

• Advertising:  $231,135
• Rent:  $26,769
• Payroll:  $117,277
• Other Expenses:  $39,491
• Hawaii General Excise Tax:  $ –
• Total Expenses (other than COGS):  $414,672

EBITDA:  -$57,004

Franchise Related Adjustments

• Royalties:  $29,361
• Brand Marketing:  $4,194
• Local Advertising Adjustment:  $8,865

Adjusted EBITDA:  -$99,425

Average

Gross Revenue:  $959,704 (100.0%)

COGS:  $124,865 (13.0%)

Gross Profit:  $834,839 (87.0%)

Expenses (other than COGS)

• Advertising:  $279,996 (29.2%)
• Rent:  $49,355 (5.1%)
• Payroll:  $246,406 (25.7%)
• Other Expenses:  $76,756 (8.0%)
• Hawaii General Excise Tax:  $25,711 (2.7%)
• Total Expenses (other than COGS):  $678,224 (70.7%)

EBITDA:  $156,615 (16.3%)

Franchise Related Adjustments

• Royalties:  $67,179 (7.0%)
• Brand Marketing:  $9,597 (1.0%)
• Local Advertising Adjustment:  $20,863 (2.2%)

Adjusted EBITDA:  $58,976 (6.1%)

• The Hawaii and Bellaire Affiliate Clinics also each operate two Satellite Franchises. Due to accounting practices for these locations, NexGenEsis was unable to accurately separate the expenses between the main Affiliate Clinic and the respective Satellite Franchises so the table above includes expenses for both the main Affiliate Clinics and the Satellite Franchises.

• The Gross Revenue number for Hawaii includes $494,356 of revenue from their two Satellite Franchises located in Maui and Kona. The Gross Revenue number for Bellaire includes $118,985 of revenue from their two Satellite Franchises in The Woodlands and Jersey Village. The Jersey Village Satellite Franchise opened in December 2023; all other Satellite Franchise locations where open for entire Reporting Period.

• Because the Gross Revenue for Hawaii and Bellaire above include aggregate totals with the Satellite Franchises, these figures may include higher Gross Revenue than the typical franchisee would generate operating a single NexGenEsis Healthcare Businesses.

• The term “COGS” means the cost of sales including medical supplies and products used in the performance of earning revenue.

• The term “Gross Profits” means Gross Sales minus COGS.

• The term “EBITDA” is defined as earnings before interest, taxes, depreciation, and amortization. The EBITDA numbers include the gross profit minus all ordinary and recurring operating expenses, except interest, income taxes, depreciation, and amortization.

• “Franchise Related Adjustments.” NexGenEsis has added a Royalty of 7% of Gross Sales, Brand Fund Contributions of 1% of Gross Sales, and, if necessary, added an amount equal to the Local Advertising Requirement minus actual advertising expenses, to reflect fees and costs that franchised NexGenEsis Healthcare Businesses will pay and incur.

• “Adjusted EBITDA” equals EBITDA less Franchise Related Adjustments. Adjusted EBITDA is not equal to Net Income and excludes other operating expenses and non-operating expenses including federal taxes, depreciation, and amortization, that must be deducted from the Gross Sales figures to obtain your net income or profit.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – NexGenEsis Healthcare Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️