INDUSTRY BENCHMARK · 44 SYSTEMS · FISCAL 2023–2026
Are health & wellness franchises a good investment?
Across 32 health & wellness franchise systems, the median system's exit rate in its latest fiscal year was 1.7%, and its opening rate 33.0%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 7.9%. HEALTH MART alone is 45% of the sector's franchised base. Median franchise fee: $50K; median royalty: 7.0%; median total investment: $300K–$690K.
There is no official “health & wellness franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
1.7%
32 systems · latest fiscal year each
7.9%
HEALTH MART alone is 45% of the sector's franchised base.
33.0%
1,109 outlets opened in total
44
FDD filed within 24 months
9,543
at latest fiscal year end
$50K
FDD Item 5
7.0%
FDD Item 6
$300K–$690K
FDD Item 7
31/44
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 44 SYSTEMS · 44 FILINGS · FISCAL 2023–2026
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | PRIME IV HYDRATION & WELLNESS (UNIT) | Strong |
| STRONGEST RECORD | 100% Chiropractic | Strong |
| STRONGEST RECORD | AFC/AMERICAN FAMILY CARE | Strong |
| WEAKEST FILED RECORD | LICE CLINICS OF AMERICA | Weaker |
| WEAKEST FILED RECORD | HEALTH MART | Weaker |
| WEAKEST FILED RECORD | Heights Wellness Retreat | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Health & Wellness franchise questions, answered from the filings
How many health & wellness franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 32 health & wellness systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2026) was 1.7%; pooled across systems, with no system counting for more than 20% of the weight, it was 7.9%. HEALTH MART alone is 45% of the sector's franchised base. Not every exit is a failure: some are retirements or sales.
How much does a health & wellness franchise cost?
Across the latest FDD filings of 44 health & wellness systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $300K–$690K (Item 7).
What royalty do health & wellness franchises charge?
The median ongoing royalty across 44 health & wellness franchise systems is 7.0% of gross sales, per Item 6 of their latest FDD filings.
Are health & wellness franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2026), the median health & wellness system opened new franchised outlets at 33.0% of its starting base and lost 1.7% to exits. For the median system, openings outpaced exits.
What is the healthiest health & wellness franchise?
Of the health & wellness systems rated from their FDD Item 20 tables, PRIME IV HYDRATION & WELLNESS (UNIT) has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
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