Risk Score
Pending analysis
Investment Range
$95,800 - $448,100
Franchise Fee
$45,000
Total US Locations
17
Business Summary
Hydrate IV Bar businesses specialize in providing intravenous (IV) hydration therapy, intramuscular and subcutaneous injections, and injectable vitamins. These services are administered in a relaxing, spa-like environment focused on wellness, recovery, and beauty. Franchisees have the option to operate either from a traditional retail location, known as a 'Wellness Spa,' or from a mobile unit or non-traditional locations such as pop-up events and concierge services, referred to as a 'Hydrate Minibar.'
Corporate History
KCA Holdings LLC, operating as Hydrate IV Bar, was formed in Colorado on January 12, 2020. The company began offering franchises for Hydrate IV Bar businesses in June 2020. Hydrate IV Bar itself does not operate company-owned businesses of the type being franchised; instead, its affiliates own and operate several Hydrate IV Bar locations in Colorado, with the earliest one established in April 2016.
Financial Overview
Investment Range
$95,800 - $448,100
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$140,000
Royalty %
8%
Marketing %
3%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$170,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition has been highlighted as a special risk, raising questions about its financial ability to provide services and support. KCA Holdings LLC reported a net loss of $223,915 in 2024 and $296,661 in 2023, and a net cash used in operating activities of $277,134 in 2024. The company's balance sheet also shows a members' deficit of $725,433 as of December 31, 2024.
Financing Details
Hydrate IV Bar does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or obligations.
Performance Metrics
Total US Locations
17
Franchised Units
12
Corporate Units
5
Avg Square Footage
900
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Hydrate IV Bar's affiliate, Hydrate IV Bar Holdings, LLC, was involved in one lawsuit in 2024. The affiliate filed a trademark infringement suit against Hydrate Arizona, LLC in April 2024. This case was settled in June 2024, with Hydrate Arizona agreeing to stop using Hydrate IV Bar's marks and change its name. Hydrate IV Bar Holdings, LLC, in turn, agreed not to challenge Hydrate Arizona's use of the marks in Alaska.
Bankruptcy History
Hydrate IV Bar has no bankruptcy information required to be disclosed, indicating that the franchisor and its key personnel have not been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Hydrate IV Bar franchisees must notify the franchisor in writing between 60 to 180 days before the agreement expires. They must be in good standing, not be in default of their franchise agreement or any other agreements with the franchisor or its affiliates, and pay all amounts due. Franchisees are required to sign the then-current successor franchise agreement and a general release. Additionally, they must pay a non-refundable renewal fee equal to 25% of the current Initial Franchise Fee and must upgrade and remodel their Wellness Spa to meet the franchisor's then-current standards and specifications at least 60 to 180 days before the term expires. They also need to ensure their lease rights extend through the successor term.
Training & Support Program
Franchisor Assistance
Hydrate IV Bar provides pre-opening assistance, including an initial training program (typically in Denver), electronic access to the Franchise Brand Standards Manual, introduction to designated real estate and construction management suppliers, consultation on site selection, territory designation, a pre-opening site inspection (virtual or in-person), and grand opening marketing materials. Ongoing support includes informing franchisees of mandatory standards, providing operational advice based on reports or inspections, offering guidance on advertising and marketing (including digital templates), and providing additional training for new personnel or for refresher courses. Optional assistance may include national or regional conferences and negotiating supplier agreements for discounts. The franchisor also maintains a System Website.
Initial Training Hours
58
Training Location
Online and Corporate store in Denver, CO or other location we designate
Ongoing Support
After opening, Hydrate IV Bar franchisees receive continuous support by being informed of mandatory standards, specifications, and procedures for their business. The franchisor provides advice and guidance on operations, advertising, and marketing (including digital templates) based on reports or inspections. Additionally, Hydrate IV Bar offers supplemental training for newly-hired personnel, refresher courses, and special assistance upon request, though additional fees may apply for these services. Franchisees also have ongoing access to confidential materials, including the Franchise Brand Standards Manual and the Marks.
Franchise Requirements
Ideal Candidate Profile
Hydrate IV Bar requires its franchisees to be actively involved in the business on a full-time, hands-on basis. For entity franchisees, a "Designated Owner" is required, holding at least 20% equity, with authority over day-to-day operations, and must have successfully completed the training program. The franchise also mandates the hiring of a "Medical Director" (an MD, DO, nurse practitioner, or other licensed professional, depending on local and state laws) to oversee all medical and health-related operations, and a "Lead Nurse" (a nurse practitioner or other licensed professional, licensed in Colorado and the state of operation) for daily medical management.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Hydrate IV Bar Wellness Spa territories are defined with a radius of between two blocks in high-density areas to approximately three miles. However, the exact size can be larger or smaller based on population numbers from the U.S. Census report and other demographic data, including information from zip codes, household occupancy rates, and other statistical sources chosen by the franchisor. Hydrate Minibars do not receive any territorial protection.
Staffing Notes
Hydrate IV Bar franchisees are responsible for determining appropriate staffing levels and for hiring, training, directing, scheduling, and supervising their employees or independent contractors. The franchisor explicitly requires the engagement of a Medical Director (MD, DO, nurse practitioner, or other licensed professional as per local laws) to oversee all medical operations. A Lead Nurse (nurse practitioner or other licensed professional, licensed in Colorado and the operating state) is also required for day-to-day medical and health-related management at the Wellness Spa. The franchisee's Designated Owner or a Spa Manager may also fulfill the Medical Director role, provided they meet the qualifications. All employees must be clearly identified as employees of the franchisee, not the franchisor, with the franchisee handling all employment-related decisions and compliance with applicable laws.