Ellie Mental Health Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$323,200 - $679,575
Franchise Fee
$20,000
Total US Locations
261
Business Summary
Ellie Mental Health operates outpatient counseling and therapy clinics. These clinics provide counseling, medication management (with franchisor approval), and therapeutic products and services. The services are delivered by licensed clinical counselors, therapists, and prescribers to individuals, couples, families, and groups. Franchisees can either directly own and operate the clinic as a licensed provider (Direct Ownership Model) or provide management, administrative, marketing, technology, and facility services to a professional entity owned by licensed providers (Managed Operation Model).
Corporate History
Ellie Mental Health's franchisor, Ellie Fam LLC, was formed in Minnesota in September 2019. However, its affiliates have been operating similar mental health businesses since November 2015, initially under the 'Ellie Family Services' mark before rebranding to 'Ellie Mental Health' in June 2021. The company began offering franchises for Ellie Mental Health businesses in June 2021. Its founder also established Ellie Family Services, PLLP (EFS) in March 2015, which operates 23 clinics as of December 2024. Ellie MSO, LLC, an affiliate formed in April 2022, owns the Ellie Mental Health service mark and other intellectual property. Ellie Fam LLC is a part of EMH PEP Holdco, LLC, an affiliate of Princeton Equity Group, LLC, which is the ultimate parent company and has interests in several other franchise systems across different industries.
Financial Overview
Investment Range
$323,200 - $679,575
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$60,000
Royalty %
7.5%
Equipment Costs (Low)
$31,000
Equipment Costs (High)
$160,600
Working Capital
$204,050
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The auditor for Ellie Mental Health has expressed substantial doubt about the company's ability to continue as a going concern, a significant financial health concern. Ellie Mental Health incurred a net loss of $18,732,302 during the fiscal year ending December 31, 2024, indicating substantial operating losses. To address this, management has received written assurances from its majority owner to inject necessary funds. This includes reclassifying $40,530,114 in related party payables to additional paid-in capital, effective January 1, 2024, to improve the company's financial position.
Financing Details
Ellie Mental Health does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
261
Franchised Units
240
Corporate Units
23
Avg Square Footage
3,300
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Ellie Mental Health has four pending litigation cases reported in its recent history. One case, filed in July 2024, involves former franchisees alleging misrepresentations and unsatisfactory services related to the company's electronic health record systems, billing, and credentialing, seeking over $937,015 in damages. Another case, filed in April 2025, involves current franchisees alleging misrepresentations and unsatisfactory shared services, electronic health record systems, billing, and credentialing, demanding at least $5,000,000 in various damages, which Ellie Mental Health states are waived in the franchise agreement. In a third case, filed in March 2025, Ellie Mental Health initiated legal action against former franchisees to enforce post-termination noncompete clauses. The former franchisees then filed counterclaims, alleging violations of franchise and business opportunity laws, fraud, and misrepresentation regarding financial performance and service provision. The fourth case, filed in September 2024, shows Ellie Mental Health enforcing a noncompete covenant against a former franchisee in bankruptcy court. Ellie Mental Health denies all allegations made against it in these disputes.
Bankruptcy History
Ellie Mental Health has no bankruptcy information to report for itself or its key management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Ellie Mental Health franchise for an additional 10-year term, franchisees must meet several conditions. They need to provide a written notice of their intent to renew at least 210 days before the current agreement expires. Franchisees must have complied with all provisions of their existing franchise agreement and operated the business according to Ellie Mental Health's system. They must also upgrade their clinic, including furniture, fixtures, and equipment, to meet the company's then-current standards. Furthermore, franchisees are required to show proof of control over the premises for the new term, provide evidence of all necessary licenses and permits for their business and staff, and sign a general release. Finally, they must pay a renewal fee of $10,000.
Training & Support Program
Franchisor Assistance
Ellie Mental Health provides extensive assistance to its franchisees both before and after opening. For pre-opening, Ellie Mental Health helps with site and territory designation, offers general guidelines for site selection, provides a sample interior layout and décor specifications, and creates a subpage for the clinic on its website. It also delivers the Initial Training Program, loans Confidential Manuals with operating procedures, and provides a list of approved suppliers and marketing materials. The company also offers an Onboarding Package with various items and services to assist with the opening. Post-opening, Ellie Mental Health offers ongoing telephone and email support for operational issues, hosts optional meetings to discuss strategy, and maintains and administers the System Brand Fund. Franchisees receive example forms and templates, continued access to marketing materials, a website subpage, and a license to the EHR System and Learning Management System (LMS) library. The company also provides contract, credentialing, and billing services.
Initial Training Hours
35
Training Location
Minnesota (corporate headquarters or affiliate's clinics) or virtually
Ongoing Support
After opening, Ellie Mental Health franchisees receive ongoing support through various channels. This includes telephone and email support for operational issues during normal business hours. The company also organizes periodic meetings, which can be conference calls, virtual, or in-person in Minnesota, to discuss strategy, obstacles, and growth. Franchisees have access to Ellie Mental Health's online Learning Management System (LMS) library (for a fee) and can request additional optional training (for a fee). Mandatory additional training may also be required if franchisees do not meet standards, incurring a fee plus travel expenses. Franchisees are also required to attend annual or bi-annual national conferences for a registration fee.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Ellie Mental Health territories are typically defined as a 3-mile radius around the physical location or a population of approximately 75,000 people. The exact size varies based on geographical and demographic factors like natural boundaries, population density, and the size of the franchised business.
Staffing Notes
Ellie Mental Health clinics generally require between 1 and 15 Licensed Providers, along with other support staff, with the exact number depending on the clinic's size, location, and service offerings. If a clinic provides medication management services through a Qualified Prescriber, it must hire and maintain at least one medication management assistant for each Qualified Prescriber. This assistant must work an equivalent number of hours per week to ensure adequate support. Franchisees or their approved Clinic Director are responsible for training all staff members, including Licensed Providers, in clinical and operational concepts before they begin providing services. This training must meet Ellie Mental Health's specific requirements.