INDUSTRY BENCHMARK · 37 SYSTEMS · FISCAL 2015–2026
Are health & wellness franchises a good investment?
Across 37 health & wellness franchise systems (14,584 franchised units), franchisees exited at an annualized rate of 9.6% in their latest FDD Item 20 filings, while new outlets opened at 10.9%. The median buy-in: a $50K franchise fee, 6.0% royalty, and a total investment of $222K–$575K.
People search for a “health & wellness franchise failure rate,” but no such official number exists. 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. That annualized exit rate is the honest, measurable proxy: it slightly overstates failure (some exits are retirements or sales) and slightly understates distress (struggling units often sell before they close), but unlike survey numbers it comes from legally mandated disclosures.
9.6%
1,382 exits / 14,418 units at start
10.9%
1,574 outlets opened
37
verified FDD extractions
14,584
at latest fiscal year end
$50K
FDD Item 5
6.0%
FDD Item 6
$222K–$575K
FDD Item 7
22/37
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 37 SYSTEMS · 37 FILINGS · FISCAL 2015–2026
| Signal | Brand | Index | Grade |
|---|---|---|---|
| STRONGEST | 100% Chiropractic | Proven & strong | |
| STRONGEST | PRIME IV HYDRATION & WELLNESS (UNIT) | Proven & strong | |
| STRONGEST | AFC/AMERICAN FAMILY CARE | Proven & strong | |
| WEAKEST | Dentsmart | Too new to judge | |
| WEAKEST | BeBalanced | Too new to judge | |
| WEAKEST | Relive Health (AR Offering) | Too new to judge |
HEALTH INDEX: SOURCED 0–100 SCORE FROM EACH BRAND'S OWN FDD ITEM 20 · METHODOLOGY
Health & Wellness franchise questions, answered from the filings
What percentage of health & wellness franchises fail?
There is no official failure rate, but FDD Item 20 filings show the honest proxy: across 37 health & wellness franchise systems, 1,382 franchised outlets left their systems (terminations, non-renewals, and "ceased operations — other") out of 14,418 open at the start of the year — an annualized exit rate of 9.6% in fiscal 2015–2026. Not every exit is a failure (some are retirements or sales), but it is the measurable floor.
How much does a health & wellness franchise cost?
Across the latest FDD filings of 37 health & wellness systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $222K–$575K (Item 7).
What royalty do health & wellness franchises charge?
The median ongoing royalty across 37 health & wellness franchise systems is 6.0% of gross sales, per Item 6 of their latest FDD filings.
Are health & wellness franchises growing or shrinking?
In the latest Item 20 filings, health & wellness systems opened new franchised outlets at an annualized rate of 10.9% while franchisees exited at 9.6%. Openings currently outpace exits in this industry.
What is the healthiest health & wellness franchise?
By the Watch Desk verdict system (computed from FDD Item 20 with an evidence gate), the strongest verified health & wellness system tracked is 100% Chiropractic.
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