Risk Score
Pending analysis
Investment Range
$251,000 - $494,000
Franchise Fee
$35,000
Total US Locations
104
Business Summary
Medi-Weightloss Businesses sell proprietary medically-supervised weight loss, wellness, nutritional, and weight management products and services. These businesses operate out of health clinics, known as Medi-Weightloss Clinics, and may offer additional ancillary products and services, including medical products and services provided by physicians. The program caters to adults and minors (aged 12-18) through its Adolescent Program. Franchisees can operate as either a Clinic Management Business, providing management services to a physician-owned medical entity, or as a Healthcare Business, directly managing and operating the medical practice if permitted by state law and if the franchisee is a licensed professional. Medi-Weightloss emphasizes that it does not practice medicine and medical decisions are made by licensed professionals.
Corporate History
Medi-Weightloss Franchising USA, LLC (MWF) was formed on January 24, 2008, as a Florida limited liability company and has been offering franchises since February 2008. The company operates Medi-Weightloss Businesses which offer proprietary medically-supervised weight loss, wellness, nutritional, and weight management products and services. Before MWF was formed, its affiliates, Physician's Health Management, LLC (PHM) and Medi-Weightloss Clinics LLC (MWLC), granted licenses to businesses operating similarly to the franchises from July 2005 through February 2008. In October 2022, Medi-Weightloss Buyer, Inc. (an affiliate of Audax Management Company, LLC) acquired MWF and its affiliates.
Financial Overview
Investment Range
$251,000 - $494,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Royalty %
10%
Marketing %
1%
Equipment Costs (Low)
$15,000
Equipment Costs (High)
$35,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Medi-Weightloss's financial statements include a "going concern" qualification from its independent auditors. This means the auditors have substantial doubt about Medi-Weightloss's ability to continue operating as a going concern due to recurring losses from operations and a net capital deficiency. The financial statements do not include adjustments that might result from the outcome of this uncertainty.
Financing Details
Medi-Weightloss does not offer any direct or indirect financing to its franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
104
Franchised Units
87
Corporate Units
17
Avg Square Footage
1,750
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Medi-Weightloss has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Medi-Weightloss has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Medi-Weightloss franchisees must provide written notice of their desire to renew between 60 and 180 days before the current term expires. They must not be in default under their franchise agreement or any other agreement with Medi-Weightloss or its affiliates, and must not have received more than three written default notices in the 12 months prior to renewal. Franchisees are required to sign Medi-Weightloss's then-current franchise agreement and all related documents, which may have materially different terms. They must also ensure their Management Agreement with the Authorized Medical Provider (if applicable) is current or sign a new one. A general release of claims against Medi-Weightloss and its affiliates must be signed by the franchisee and its owners. A non-refundable successor franchise fee of $5,000 is required. Franchisees must also have the right under their lease to maintain possession of their premises for the new term and must make any necessary renovations, refurbishments, and modernizations to the premises and business to meet Medi-Weightloss's then-current system standards for a newly opened franchise, including upgrades to equipment, tools, and technology. They must complete these renovations within a required timeframe, and typically within 60 to 180 days before the term expires. Franchisees must also take any additional actions Medi-Weightloss reasonably requires.
Training & Support Program
Franchisor Assistance
Medi-Weightloss provides a range of assistance to its franchisees. Before opening, Medi-Weightloss offers an initial training program and delivers an initial package of equipment and supplies. Franchisees receive access to the confidential Franchise Operations Manual and advice on identifying a suitable location, which Medi-Weightloss must approve. It also designates a territory, provides basic design specifications for the clinic (though franchisees are responsible for hiring architects, engineers, and construction costs), and conducts a grand opening marketing campaign. Medi-Weightloss provides a list of required furniture, fixtures, equipment, and designated suppliers, with most items included in the initial package. Ongoing support includes informing franchisees of mandatory operating standards and procedures, and providing advice on business operations based on reports or inspections through various communication methods. Additional training is available for newly hired personnel, refresher courses, or as requested/determined necessary by Medi-Weightloss, though additional fees may apply. Franchisees continue to have access to confidential materials, the Franchise Operations Manual, and trademarks. Optional assistance can include modifying the system, periodic on-site visits with written reports, administration of the System Development Fund for marketing and brand development, and potentially assisting with physician relationships. Medi-Weightloss also offers optional "Optimization" services, marketing services, and E-Signature services for additional fees.
Initial Training Hours
102
Training Location
Corporate training facility in Tampa, Florida
Ongoing Support
Medi-Weightloss provides ongoing support by informing franchisees of mandatory standards, specifications, and procedures for operating the business. It offers advice on business operations based on reports or inspections, delivered through written materials, electronic media, or telephone. Additional training is available for newly hired personnel, refresher courses, or as requested/determined necessary by Medi-Weightloss, though additional fees may apply. Franchisees continue to have access to confidential materials, the Franchise Operations Manual, and trademarks. Medi-Weightloss may also make periodic visits to clinics, maintain a System Development Fund for marketing and brand development, and potentially assist with physician relationships. Franchisees are required to attend national or regional conferences and may participate in the optional Dale Carnegie "Trusted Partner Program" meetings.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Medi-Weightloss grants a protected territory that is typically determined by zip codes, containing a population of approximately 125,000 persons, with a minimum population of at least 100,000 persons. The territory is based on geographic area, population properties, and other relevant demographic characteristics.
Staffing Notes
Medi-Weightloss franchisees must staff their clinics with adequate medical and non-medical personnel to meet the needs of the franchise. The clinic must adhere to minimum hours and days of operation as specified in the Franchise Operations Manual, typically being open every day of the year except approved national holidays. Franchisees are generally required to maintain a Management Agreement with an Authorized Medical Provider, unless the franchisee is a licensed professional operating as a Healthcare Business. The Responsible Owner is solely responsible for ensuring that all medical personnel are duly licensed, board-certified, and experienced in their respective states. The Authorized Medical Provider is responsible for employing and controlling physicians, medical providers, and other medical staff. Medi-Weightloss emphasizes that franchisees are responsible for hiring, training, directing, scheduling, and supervising their own employees and independent contractors in day-to-day operations, with Medi-Weightloss providing limited training on the system and brand standards to key employees.