Risk Score
Pending analysis
Investment Range
$159,320 - $267,620
Franchise Fee
$41,667
Total US Locations
3
Business Summary
AumBio Center operates alternative holistic wellness centers that provide client wellness consultations and therapies. These centers utilize a unique system developed by AumBio Franchising, LLC, which includes specific equipment, operational standards, and procedures to offer a consistent quality of general wellness services to its clients.
Corporate History
AumBio Franchising, LLC was established as an Illinois limited liability company on August 28, 2023, and officially began offering AumBio franchises on October 17, 2023. The company's predecessor and affiliate, Aum-Bio, Inc., is an Illinois corporation that was formed on July 2, 2003. Aum-Bio, Inc. operates three holistic wellness centers, which are similar to the AumBio businesses being franchised, but it has no prior franchising experience. AumBio has developed a unique concept and system for establishing and operating these alternative holistic wellness centers.
Financial Overview
Investment Range
$159,320 - $267,620
Franchise Fee (Low)
$41,667
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$63,500
Equipment Costs (High)
$120,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
AumBio Franchising, LLC is a newly formed company from August 2023. Its financial statements indicate significant financial challenges. The company experienced a net loss of $97 in 2024, leading to a negative members' equity of ($9). The balance sheet for 2024 shows zero total assets and a bank overdraft of $9. These figures have led the auditors to express "substantial doubt" about AumBio Franchising, LLC's ability to continue operating, suggesting potential difficulties in providing services and support to its franchisees.
Financing Details
AumBio Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that prospective franchisees will be responsible for securing all necessary funds for their initial investment and ongoing operational costs through external sources, such as banks, personal loans, or other financial institutions. AumBio Franchising, LLC also explicitly states that it does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Avg Square Footage
1,100
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
AumBio has disclosed one legal matter, which resulted in an Agreed Order to Cease and Desist on April 16, 2024. This order involved Aum-Bio, Inc., a predecessor to the franchisor, and its principals, with the Department of Financial and Professional Regulation of the State of Illinois. Under the order, Aum-Bio, Inc. agreed to ensure its websites do not contain marketing materials or advertising about the efficacy of health-related procedures and therapies not supported by medical literature, and to clearly state that they are not medical professionals. Sanctions can be imposed for violations of this order. No other litigation is required to be disclosed by AumBio.
Bankruptcy History
AumBio Franchising, LLC has no bankruptcy history that is required to be disclosed in Item 4 of this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
AumBio franchisees wishing to renew their franchise must provide AumBio with written notice between nine and twelve months before their initial agreement ends. To be eligible, AumBio franchisees must be in good standing, meaning they are not in default of any agreements with AumBio, its affiliates, or their landlord, and all financial obligations to AumBio, approved vendors, and the landlord must be satisfied. AumBio franchisees will be required to sign AumBio's then-current Franchise Agreement, which may have different terms, including royalty rates, but without an additional initial franchise fee. A renewal fee of $5,000 (subject to inflation adjustment) is due. AumBio franchisees and their principal owners must also execute a general release of claims against AumBio (unless prohibited by state law). Additionally, AumBio franchisees must, at their own expense, reimage, renovate, refurbish, and modernize their AumBio Center to meet AumBio's then-current standards and specifications within a timeframe set by AumBio. They must also complete any additional training programs AumBio requires and provide proof of their legal right to continue occupying the Center's premises or secure a new approved site. Renewal is also contingent on AumBio's decision to continue offering franchises in the AumBio franchisee's territory.
Training & Support Program
Franchisor Assistance
AumBio provides comprehensive assistance to its franchisees, starting before the AumBio Center opens. Pre-opening support includes reviewing and approving the proposed site, offering written specifications for operations and management, and providing an initial training program for up to two individuals (AumBio covers tuition, but the AumBio franchisee covers travel, lodging, and wages). AumBio also supplies a list of approved suppliers, grants access to its Confidential Operations Manual, helps establish the AumBio Center's internet presence, and advises on initial market introduction and approved equipment, signs, fixtures, and inventory. Once the AumBio Center is open, ongoing support continues. AumBio offers general advisory assistance and field support as it deems helpful for operations, advertising, and promotion. AumBio franchisees receive updates and revisions to the Operations Manual and access to advertising and promotional materials developed for the System (AumBio franchisees purchase these materials). AumBio also conducts periodic inspections and evaluations of the AumBio Centers. Furthermore, AumBio provides additional mandatory and optional training for replacement managers and on new services, and offers five days of on-site assistance during the first week of operation at AumBio's expense. AumBio continuously works to maintain high standards of quality, cleanliness, safety, and customer satisfaction across all AumBio Centers.
Initial Training Hours
45
Training Location
Rolling Meadows, Illinois (with components in Chicago and Oak Lawn); virtual training is also required.
Ongoing Support
After the AumBio Center opens, AumBio provides various ongoing support services to its franchisees. This includes general advisory assistance and field support, offered at AumBio's discretion, for the continuous operation, advertising, and promotion of the AumBio franchise business. AumBio also offers additional mandatory and optional training as needed for replacement managers and for new services introduced into the AumBio System. AumBio ensures that franchisees receive regular updates, revisions, and amendments to the Confidential Operations Manual. Franchisees also gain access to advertising and promotional materials developed by AumBio, though they are responsible for purchasing these materials and covering shipping costs. AumBio conducts periodic inspections of the AumBio franchise business and evaluates its operations and staff, as it deems advisable, to maintain quality standards. Additionally, AumBio franchisees are required to attend annual conventions or meetings, covering their own travel, lodging, meals, salaries, and any registration fees.
Franchise Requirements
Ideal Candidate Profile
AumBio Franchising, LLC seeks franchisees who are the principal equity owners and executive officers of the franchisee entity and are willing to personally guarantee performance. Ideal candidates should possess strong business skills, financial capacity, and personal character. Franchisees must be comfortable assuming regulatory risks associated with operating an alternative holistic wellness center. They are required to designate and retain a full-time Center Manager, who must successfully complete the initial training and devote full-time best efforts to the management and on-site supervision of the center.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
exclusive
Territory Size Requirements
Each AumBio Center franchise receives an exclusive territory. The specific size of an AumBio territory depends on various factors such as local demographics, population density, and existing competition in the market area. However, AumBio Franchising, LLC commits not to establish more than one AumBio Center for every 100,000 people in a given market area. The precise boundaries of an AumBio territory are determined and mutually agreed upon after the franchisee's proposed location is approved and are then detailed in Schedule A of the Franchise Agreement. For multi-unit development, the Development Area is typically defined by municipal or county boundaries or as a specific trade area within a municipality.
Staffing Notes
An AumBio Center franchisee must designate and retain a Center Manager who does not necessarily need to hold an equity interest in the business. This designated Center Manager must be approved by AumBio Franchising, LLC and must successfully complete the Initial Training Program. The manager is required to dedicate full-time effort to managing the AumBio Center and must be physically present during all operating hours, providing day-to-day on-premises supervision. AumBio Franchising, LLC retains the right to approve all proposed Center Managers. All employees and independent contractors who will have access to AumBio's Confidential Operations Manual and proprietary information must sign a Confidentiality and Non-Competition Agreement. Additionally, all employees administering therapies must obtain any required certifications and training. AumBio Franchising, LLC mandates that franchisees hire a sufficient number of qualified and competent personnel to provide prompt, courteous, and efficient service. Employees are expected to maintain a neat and clean appearance, adhere to AumBio's dress code, and conduct themselves professionally. Franchisees are solely responsible for all aspects of employee management, including recruitment, hiring, training, wages, taxes, benefits, scheduling, discipline, and termination. Franchisees must also conduct criminal background checks on all prospective employees through an approved third-party vendor and ensure employees acknowledge they are employed by the franchisee, not AumBio Franchising, LLC. A notice to this effect must be prominently displayed to employees at the AumBio Center.