Restore Hyper Wellness

Delving into the 2025 FDD, Item 7 lists the franchise fee at $44,500, with total investment ranging from undisclosed minimums but supported by average SBA loans of $610,094 across 101 records, signaling substantial capital needs for buildouts in high-traffic areas. Revenue shines in Item 19: average gross sales hit $911,516, median $850,994 across studios, driven by memberships and a la carte services—impressive for a 2016 entrant now at 209 locations (12 corporate). Yet fees bite: 7% royalty, 2% brand fund, plus a $600/month technology surcharge, totaling around 9% plus fixed costs that could pressure maturing units.

System metrics raise flags: locations contracted 2% from 214 (2023) to 209 (2024), with 29 terminations and just 4 transfers, alongside modest 7 projected new units—far from explosive expansion in wellness peers. A pending franchisee lawsuit in Item 20 alleges breach of contract, fraud, and non-disclosure on sales and operations, potentially eroding trust. For investors eyeing $900K+ topline, validate local demand and ops execution; contraction and litigation suggest caution despite revenue allure, as weaker medians imply top performers skew averages.