Risk Score
Pending analysis
Investment Range
$272,350 - $491,750
Franchise Fee
$30,000
Min Cash Required
$5,000
Total US Locations
31
Business Summary
Lindora Clinics are wellness centers that provide or arrange for a variety of health and wellness products and services. These services currently include weight loss and wellness plans, nutritional supplements, hormone replacement therapy, weight loss medication, IV therapies, and laser treatments. Lindora Clinics also facilitate the provision of certain medical and non-medical services, ensuring compliance with applicable state laws regarding medical practice.
Corporate History
Lindora Franchise, LLC was formed on November 13, 2023, and began offering franchises for Lindora Clinics on November 22, 2023. The Lindora brand itself has a longer history, with its predecessor, Lindora Wellness, Inc., having 25 years of experience in owning and operating these clinics, dating back to approximately 1999. In January 2024, Lindora Wellness, Inc. sold its ownership interest to Xponential Fitness, LLC, which is controlled by the publicly traded Xponential Fitness, Inc. As of December 2023, Lindora Wellness, Inc. became a franchisee, continuing to operate its 31 existing clinics under franchise agreements with Lindora Franchise, LLC.
Financial Overview
Investment Range
$272,350 - $491,750
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$5,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$296,700
Equipment Costs (High)
$454,500
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Lindora Franchise, LLC's financial condition, as noted in the Special Risks section, calls into question its ability to provide services and support to franchisees. The franchisor relies on its parent company, Xponential Fitness LLC, for resources and operational support. The company reported a net loss of $4.476 million for the period from March 6, 2023, to December 31, 2023.
Financing Details
Lindora Franchise, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, the franchisor and its affiliates do not guarantee any notes, leases, or other obligations that franchisees might incur for their business.
Performance Metrics
Total US Locations
31
Franchised Units
31
Corporate Units
0
Avg Square Footage
1,600
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Lindora Franchise, LLC and its affiliates have disclosed four pending lawsuits. Two lawsuits, filed in August and November 2023, involve certain former franchisees of affiliate brands (AKT and Yoga Six) who allege violations of franchise investment laws, fraudulent inducement, and breach of good faith dealing against AKT Franchise, LLC, Yoga Six Franchise, LLC, Xponential Fitness, Inc. (parent company), and various related parties. The franchisees are seeking rescission of agreements and damages. Additionally, two securities-related lawsuits were filed in February and March 2024 against Xponential Fitness, Inc. and some of its officers. These lawsuits allege omissions and misstatements of material facts in publicly disclosed documents, seeking compensatory damages and other relief. Lindora Franchise, LLC intends to fully enforce the arbitration provisions in its agreements despite challenges.
Bankruptcy History
Lindora Franchise, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Lindora Clinic franchisees must provide written notice of their desire to renew between 90 and 180 days before the current term expires. They must be in substantial compliance with their franchise agreement and all other agreements with Lindora Franchise, LLC. Franchisees are required to sign Lindora Franchise, LLC's then-current franchise agreement, which may have materially different terms, and pay a renewal fee of $10,000. They must also maintain possession of an approved location or secure an alternative one, remodel the Clinic to meet current system standards, and sign a general release.
Training & Support Program
Franchisor Assistance
Lindora Franchise, LLC provides various forms of assistance to its franchisees. Pre-opening support includes guidance on designating a geographical market area, licensing of trademarks, initial staff training (a 40-hour program), specifications for clinic layout and design, and lists of approved equipment and suppliers. Lindora Franchise, LLC also consults on grand opening advertising and a pre-opening sales plan, and provides a form for the Management Services Agreement. Ongoing assistance includes specifying and approving equipment and suppliers, providing additional training upon request (for a fee), offering continuing advisory assistance, and administering the Brand Development Fund. Lindora Franchise, LLC also manages certain technology services and specifies computer systems and software for clinic operations.
Initial Training Hours
40
Training Location
Franchisor's headquarters or nearby training facility in Irvine, CA
Ongoing Support
Lindora Franchise, LLC offers various ongoing support services. Franchisees can request additional training for their personnel, though they will be responsible for associated costs. Lindora Franchise, LLC provides continuing advisory assistance and information related to clinic development and operation, and administers the Brand Development Fund, to which franchisees contribute. Management personnel may be required to attend up to five days of additional/refresher training annually at no tuition cost. The franchisor's approved supplier provides periodic updates and maintenance for the required business management software used in clinics.
Franchise Requirements
Ideal Candidate Profile
Lindora Franchise, LLC seeks qualified individuals or entities to operate its clinics. Franchisees or their appointed Operating Principals are recommended, but not required, to personally supervise the Clinic. If the franchisee does not personally supervise, an approved Designated Manager must oversee daily operations. Candidates, and any owners with 10% or greater interest, must be of good moral character and reputation, have no conflicting interests, possess a good credit rating, and have sufficient business experience, aptitude, and financial resources. All personnel working at the clinic must be properly licensed, certified, registered, trained, educated, and experienced for their assigned tasks.
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
protected
Territory Size Requirements
Lindora Clinics operate within a Designated Territory that typically has a maximum of 50,000 people and is approximately a two-mile radius around the Authorized Location. In major metropolitan downtown areas (Central Business Districts), the territory may still contain up to 50,000 people but can be limited to a geographic area ranging from two blocks to two miles. The size of the Designated Territory can vary based on the specific location and demographics, and boundaries may be defined using zip codes, streets, landmarks, or county lines.
Staffing Notes
Lindora Clinics require specific staffing for medical services, including at least one licensed and registered Nurse Practitioner and one Licensed Vocational Nurse, or similar qualified staff, all operating under the supervision of a Medical Director. The Medical Director is a licensed physician engaged through a Professional Entity. Franchisees are the employers for all other clinic staff and independent contractors, except for the Medical Director, Nurse Practitioner, and Licensed Vocational Nurse. Franchisees are solely responsible for hiring, disciplining, and setting terms of employment for their personnel, ensuring all are properly licensed, certified, and trained. Any training for medical positions is facilitated by Lindora Franchise, LLC but provided under the Medical Director's sole direction. If the franchisee (or Operating Principal) does not personally supervise, a Designated Manager approved by Lindora Franchise, LLC must manage day-to-day operations on-site.