Risk Score
Pending analysis
Investment Range
$255,478 - $595,000
Franchise Fee
$18,750
Total US Locations
237
Business Summary
Good Feet Worldwide offers franchises for Good Feet Stores that specialize in selling GOOD FEET® brand arch supports and related foot products. These stores operate under a specific system that includes facility design, sales methods, decor, signage, and confidential operating procedures for various aspects like record-keeping, accounting, purchasing, and marketing. Good Feet Stores sell products primarily from affiliate companies and other approved vendors. It is important to note that Good Feet products are not to be sold as medical treatments or with any medical diagnosis or prescription.
Corporate History
Good Feet Worldwide, LLC was formed as a Delaware limited liability company on December 20, 2004. The company began offering franchises for Good Feet Stores in February 2005. While the franchisor itself has never operated a Good Feet Store, its affiliate, Dr.'s Own, LLC (or its predecessor Dr.'s Own, Inc.), granted Good Feet Product dealerships from 1998 until March 2003 and has operated one or more Good Feet Stores since February 2003.
Financial Overview
Investment Range
$255,478 - $595,000
Franchise Fee (Low)
$18,750
Franchise Fee (High)
$25,000
Royalty %
1%
Marketing %
3%
Equipment Costs (Low)
$89,000
Equipment Costs (High)
$316,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Good Feet Worldwide received an unqualified audit opinion for its financial statements for the fiscal years ending December 31, 2023, and 2022. The company's net income increased significantly in 2023 to $944,109, up from $191,032 in 2022. Member's equity also saw a substantial rise from $361,379 to $5,210,128 in 2023. A contingent liability of approximately $791,000, related to a management bonus plan, was reversed in 2023 as the earnout period concluded. While cash decreased notably from $1,023,153 to $39,832 in 2023, a significant related-party receivable of $1,188,794 was collected shortly after year-end, which would improve the cash position. The company maintains a healthy financial position with no explicit going concern qualifications noted by its auditors.
Financing Details
Good Feet Worldwide does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of the franchisees.
Performance Metrics
Total US Locations
237
Franchised Units
210
Corporate Units
27
Avg Square Footage
1,750
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Good Feet Worldwide has disclosed two litigation cases. The first involved a customer lawsuit, Sisk vs. Dr.'s Own, Inc. and Good Feet Worldwide, LLC, filed in October 2019, alleging violations of unfair trade practices. This case was settled for $125,000 and dismissed in January 2020. The second case, Conway v. Planet Fitness Holdings, LLC and others, involved Richard Moore, Good Feet Worldwide's current President, and was filed in May 2013 against Planet Fitness. This lawsuit alleged fraud, securities act violations, negligent misrepresentation, and breach of good faith related to Ms. Conway's separation from Planet Fitness. A verdict for Conway of $5.36 million was reached in May 2019, with a final judgment of over $4.9 million plus interest entered in September 2020, and an appellate court final judgment in June 2022. Good Feet Worldwide states that this second action does not involve the Good Feet System.
Bankruptcy History
Good Feet Worldwide's current Chief Financial Officer, Mr. Bhatti, was the former Global Chief Financial Officer of Jenny Craig from July 2020 to November 2022. Jenny Craig filed for Chapter 7 bankruptcy protection on May 5, 2023. This bankruptcy case is currently pending and Good Feet Worldwide states it does not involve the Good Feet System.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise, Good Feet Worldwide franchisees must provide written notice at least 180 days before the current term ends, be in substantial compliance with the material terms of their franchise agreement, and upgrade, remodel, and redecorate their store to meet current brand standards. They must also maintain possession of the store's premises or relocate to an approved new site if reasonably requested by Good Feet Worldwide (if the existing premises are inconsistent with current standards and the request is made 18 months prior to expiration). Franchisees are required to execute the then-current franchise agreement and related agreements, sign a mutual general release (if allowed by state law), have their Managing Owner and Store managers complete any new training programs, and pay a $5,000 renewal fee. The terms of the new agreement may differ materially, including a reduced territory and increased fees.
Training & Support Program
Franchisor Assistance
Before opening a Good Feet Store, Good Feet Worldwide helps franchisees by granting the franchise, approving the store's lease, selling initial product inventory, and providing an Initial Brand Standard Training Program. They also provide specifications for the store's building, equipment, and decor, make their Confidential Operating Manual available, and consult on grand-opening advertising. For Area Development Agreement (ADA) signees, Good Feet Worldwide designates the number of stores to open and offers real estate and project-site services, including market analysis, demographic studies, site investigation, review, and selection, and recommends potential store sites or sources for brokers and contractors. During operation, Good Feet Worldwide licenses advertising and promotional materials, offers initial training for new general managers, and provides additional training programs or seminars. They issue and modify operating procedures, inspect stores, offer staff for consultation and guidance, provide access to confidential information and trademarks, continue to sell products, and maintain an Advertising Fund. Good Feet Worldwide may also form a Franchisee Advisory Council and establish websites for the franchise system.
Initial Training Hours
72
Training Location
San Diego, California
Ongoing Support
After opening, Good Feet Worldwide provides ongoing support by making staff available for consultation and guidance in operating the store. They offer additional brand standard training programs or seminars at their principal offices or other designated locations, which may be required annually. The franchisor issues and modifies operational standards, specifications, and procedures, including updates to the Operations Manual. Good Feet Worldwide inspects stores as needed and provides available changes, improvements, and additions to the Good Feet System. Additional guidance and assistance can be provided upon the franchisee's request, subject to personnel availability. Good Feet Worldwide also maintains and administers an Advertising Fund to support system-wide marketing and may form a Franchisee Advisory Council to advise on system development.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Good Feet Worldwide defines its exclusive territories based on area demographics, including population, number of homes, and general media markets, without a set minimum or maximum size. The franchisor uses Nielsen DMA statistics and may consider other sources for market information. Territories are described using streets, roads, highways, zip codes, city and county lines, and/or natural boundaries.
Staffing Notes
Good Feet Worldwide requires that each Good Feet Store be under the direct, on-premises supervision of a trained individual acting as a full-time general manager. This general manager must have completed Good Feet Worldwide's Initial Brand Standard Training Program, though they do not necessarily have to be the franchisee's Managing Owner. The Managing Owner is responsible for overall management and business decisions. Additionally, all employees with access to confidential information must sign a confidentiality and non-competition agreement, and the Managing Owner or general manager is responsible for training all store employees on brand standards.