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

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

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

Section III – Number of franchised and company-owned Hydralive Therapy 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 Hydralive Therapy franchise opportunity

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

• 2023 actual and average total customers, client square footage, revenue, cost of goods sold, gross profit, operating expenses, and net income for the 2 affiliate-owned Hydralive Therapy locations that operated for 2 or more years

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

Section I – Hydralive Therapy Franchise Costs

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

• Initial Franchise Fee:  $49,500
• Franchise Location – One Month Rent and Security Deposit:  $4,000 to $7,000
• Leasehold Improvements:  $10,000 to $130,000
• Insurance:  $2,000 to $3,500
• Clinic Supplies:  $19,200 to $25,000
• Computer System, Security Cameras, and Telephones:  $2,000 to $5,000
• Signage:  $1,000 to $8,000
• Utility Deposits and Business Licenses:  $350 to $1,250
• Legal and Accounting:  $0 to $2,500
• Opening Advertising:  $5,000 to $10,000
• Equipment:  $101,900
• Architect:  $9,200 to $12,000
• Clinic Furniture:  $25,000 to $30,000
• Additional Funds – Initial 3 Months:  $15,000 to $30,000
• Total Estimated Hydralive Therapy Franchise Costs:  $244,150 to $415,650

Section II – Hydralive Therapy’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $49,500
• Continuing License Fee:  7% weekly Gross Revenue
• Brand Fund Fee:  2% of monthly Gross Revenue
• Local Advertising Services Fee:  you must spend at least $2,000 each month on advertising mediums that are specifically directed and executed by the Local Advertising Services Program
• Advertising Cooperative:  when cooperative formed: up to 2% of Gross Revenue

Section III – Number of Franchised and Company-Owned Hydralive Therapy 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:  1
• Net Change:  +1

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  3*
• Outlets at the End of the Year:  4*
• Net Change:  +1

2022

• Outlets at the Start of the Year:  4*
• Outlets at the End of the Year:  3*
• Net Change:  -1

2023

• Outlets at the Start of the Year:  3*
• Outlets at the End of the Year:  3*
• Net Change:  0

*Although the franchisor does not operate any company-owned locations, its parent operates three similar locations in Alabama.

Section IV – News Updates on the Hydralive Therapy Franchise

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

• During the calendar year 2023, Hydralive Therapy had one franchise location open in Columbus, Georgia, which was open less than two years and is therefore not included in the chart below.

• Hydralive Therapy’s affiliate K & B Industries, LLC, which has since been acquired 100% by Hydralive Holdings, LLC, effective March 1, 2023, operated two Hydralive locations for two years or more, one in Tuscaloosa, Alabama (opened in 2016) and one in Homewood, Alabama (Birmingham, Alabama metropolitan area, opened in 2018).

• Hydralive Therapy’s parent Hydralive Holdings, LLC also owns another location in Hoover, Alabama (opened March 2023). The Hoover location was not operated for a full two years and is therefore not included in the chart below.

• The Unaudited 2023 Financial Statement is for two of Hydralive Holdings, LLC’s locations that operated for two or more years.

• The Homewood location has a cryotherapy machine (your franchise is required to operate an electric cryotherapy machine) and the Tuscaloosa location does not and did not offer cryo therapy in 2023.

• The Homewood location is in a market which is part of a larger metropolitan area, while the Tuscaloosa location is in a small metro area close to the University of Alabama. The two clinics in the chart represent affiliate locations which did not pay Royalty nor Brand Fund Fees.

Homewood

• Total Customers:  8,364
• Client Square Footage:  3,110
• Year Opened:  2018

Revenue

• Monthly Recurring Membership:  $173,969
• Retail Merchandise Sales:  $1,149
• Treatments:  $549,565
• Consultation Revenue:  $41,350
• Total Revenue:  $766,033

Cost of Goods Sold

• Medical Supplies:  $128,961
• Merchant Service Fees:  $24,086
• Retail Products:  $2,270
• Cryo Gas:  $9,563
• Total Cost of Goods Sold:  $164,880

Gross Profit:  $601,153

Operating Expenses

• Software/Web Licensing:  $10,066
• Miscellaneous (Gifts/Repairs):  $6,044
• Liability Insurance:  $6,141
• Marketing and Advertising:  $36,887
• Office Expenses:  $2,808
• Administrative Payroll:  $72,201
• Professional Fees:  $89,219
• MD Consult Fee:  $41,350
• Rent:  $47,210
• Utilities:  $7,430
• Total Operating Expenses:  $319,356

Net Income:  $281,797

Tuscaloosa

• Total Customers:  5,225
• Client Square Footage:  3,200
• Year Opened:  2016

Revenue

• Monthly Recurring Membership:  $100,626
• Retail Merchandise Sales:  $877
• Treatments:  $350,068
• Consultation Revenue:  $31,925
• Total Revenue:  $483,496

Cost of Goods Sold

• Medical Supplies:  $83,253
• Merchant Service Fees:  $14,896
• Retail Products:  $7,334
• Cryo Gas:  $847
• Total Cost of Goods Sold:  $106,330

Gross Profit:  $377,166

Operating Expenses

• Software/Web Licensing:  $10,066
• Miscellaneous (Gifts/Repairs):  $6,768
• Liability Insurance:  $6,141
• Marketing and Advertising:  $27,238
• Office Expenses:  $3,173
• Administrative Payroll:  $51,567
• Professional Fees:  $76,528
• MD Consult Fee:  $31,925
• Rent:  $51,885
• Utilities:  $6,827
• Total Operating Expenses:  $272,118

Net Income:  $105,048

Average

• Total Customers:  6,795
• Client Square Footage:  3,155

Revenue

• Monthly Recurring Membership:  $137,298 (22%)
• Retail Merchandise Sales:  $1,013 (0%)
• Treatments:  $449,816 (72%)
• Consultation Revenue:  $36,638 (6%)
• Total Revenue:  $624,765 (100%)

Cost of Goods Sold

• Medical Supplies:  $106,107 (17%)
• Merchant Service Fees:  $19,491 (3%)
• Retail Products:  $4,802 (1%)
• Cryo Gas:  $5,205 (1%)
• Total Cost of Goods Sold:  $135,605 (22%)

Gross Profit:  $489,160 (78%)

Operating Expenses

• Software/Web Licensing:  $10,066 (2%)
• Miscellaneous (Gifts/Repairs):  $6,406 (1%)
• Liability Insurance:  $6,141 (1%)
• Marketing and Advertising:  $32,062 (5%)
• Office Expenses:  $2,991 (0%)
• Administrative Payroll:  $61,884 (10%)
• Professional Fees:  $82,874 (13%)
• MD Consult Fee:  $36,638 (6%)
• Rent:  $49,548 (8%)
• Utilities:  $7,129 (1%)
• Total Operating Expenses:  $295,737 (47%)

Net Income:  $193,422 (31%)

• *Note: Certain states may require that a physician or a mid-level practitioner consulting with a physician (Nurse Practitioner or Physician Assistant) provide initial consultations that are good for one year to each new Hydralive client. The costs for which are included above for reference.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.

• Many factors, including location, management capabilities, local market conditions, and other factors, are unique to each clinic location and may significantly impact the financial performance of the clinic.

• You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised Hydralive Clinic. Many factors, including location, management capabilities, local market conditions, and other factors, are unique to each business and may significantly impact the financial performance of your franchise business. Actual results vary from Clinic to Clinic and Hydralive Therapy cannot estimate the results of any particular franchise.

• Historical costs do not necessarily correspond to future costs because of factors such as pandemics, inflation, changes in minimum wage laws, rising fuel cost, location, financing, construction costs, lease related costs such as rent, CAM charges, taxes, interest, insurance, and utilities vary from franchise business to franchise business. All information should be evaluated in light of current market conditions including such cost and price information as may then be available.

• The term “Gross Revenue” means all revenue you derive from operating the Hydralive Clinic, including, but not limited to, all amounts received at or away from the Clinic Site from any activities or services whatsoever including any that are in any way associated with the Marks, the System, and whether from cash, check, barter, credit or debit card, or credit transactions, including memberships and the redemption value of gift certificates redeemed regardless of whether such gift certificates are issued by the Clinic or someone else; but excluding (1) all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority and (2) customer refunds, adjustments, credits, and allowances actually made by the Clinic.

• Gross Revenue also includes revenues from any service and sale of products bearing or associated with the Marks.

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