SEROTONIN CENTER FACILITY

Item 7 lays out the initial investment from $872,284 to $1,788,879, covering buildout for a 2,500-5,000 sq ft facility, equipment like lasers and infusion setups, plus six months' operating reserves. The $59,000 franchise fee gets you the proprietary management system, training, and territorial rights, but ongoing costs bite: 7% royalty (capped or flat $2,500 minimum, whichever's higher), 2% ad fund, mandatory $1,900/month tech fee, and $995/month call center—optionally layer on $995/month back office. Item 19 shines here, showing average and median gross revenues of $641,702 across units, a solid figure for a nascent brand in healthcare/wellness, though without bottom-line profits, you're estimating 20-30% margins after fees to gauge viability.

System maturity raises flags: franchising since 2021 with 8 franchise and 3 corporate locations, it rocketed from 2 to 8 units in 2024 (+300% growth) and projects 3 more, signaling operator interest. But 6 terminations already suggest growing pains, common in regulated med-spa plays adapting to state rules on ownership (direct for pros or management services). Five SBA loans averaging $1,275,060 reflect lender buy-in for the model, likely financing 70-80% of startup. For a hands-off investor partnering with clinicians, the revenue scale tempts, but high fixed fees and competition demand top-tier locations to hit that $642K average.