FYZICAL

Item 7 lays out a steep upfront commitment: franchise fee of $300,000 atop total initial investment ranging $306,050-$1,069,500, covering build-out, equipment, and training for new or conversion sites. Notably, no ongoing royalties or ad fund fees appear in Item 6, shifting costs to as-incurred items like $20,000 transfers, insurance reimbursements, and additional training—potentially easing cash flow for mature units but risking surprises. Without Item 19, there's no disclosed average revenue or profit, forcing reliance on external signals like 104 SBA loans averaging $222,261, suggesting lenders see viability despite the high costs; this volume (nearly two loans per 58 locations) indicates franchisees leverage debt heavily to launch.

System metrics in Items 20-21 show modest expansion from 51 to 58 locations (+14% growth), with just 3 projected new units and 2 transfers, hinting at steady but not explosive scaling. One settled litigation over breach and royalties (Item 3) resolved mutually, avoiding major red flags. For investors eyeing medical services, the $300K fee demands exceptional patient volume in rehab and wellness; SBA data implies doable financing, but absent earnings proof, validate via discovery day—high rewards possible in aging demographics, yet capital intensity could strain underperformers.