Natural Awakenings Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$59,550 - $86,275
Franchise Fee
$5,000
Total US Locations
47
Business Summary
Natural Awakenings Publishing Corp. operates a franchise publishing a free, local, community print and digital Natural Awakenings magazine. This magazine features content on natural lifestyles, organic and healthy foods, sustainable living, and whole health. The business generates income primarily from selling advertising space in its print and digital magazines and on its website. Additionally, Natural Awakenings franchisees may market a co-branded online subscription magazine called Knatural Awakenings and sell NAPC-approved services like memberships, business services, and advertising offerings. Franchisees also earn commissions from cross-marketing memberships in KnoWEwell's Regenerative Whole Health Hub.
Corporate History
The Natural Awakenings concept was originally founded in Naples, Florida, in 1993. Natural Awakenings Publishing Corp., the current franchisor, was formed as a Delaware corporation on September 1, 2022. On December 1, 2022, this entity acquired all or substantially all assets, including the franchise system, from its predecessor, Natural Awakenings Publishing Corp., a Florida corporation. The predecessor's principal owner also operates the Naples/Ft. Myers edition of Natural Awakenings Magazine, which was a company-owned unit until the asset purchase and is now a franchisee.
Financial Overview
Investment Range
$59,550 - $86,275
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$49,500
Royalty %
7%
Equipment Costs (Low)
$2,100
Equipment Costs (High)
$6,350
Working Capital
$15,263
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Natural Awakenings Publishing Corp.'s financial condition, as noted in its Item 21 financial statements, raises questions about its ability to provide services and support to franchisees. The Hawaii Addendum also points out that a review of the financial statements indicates that the franchisor's liabilities exceed its assets, suggesting a negative equity situation that prospective franchisees should consider. However, the company reported a net income of $132,113 for the year ended December 31, 2023, a positive shift from a net loss in the previous period.
Financing Details
Natural Awakenings Publishing Corp. offers qualified franchisees the opportunity to finance a portion of their Initial Franchise Fee in installments. Franchisees must make a down payment of $25,000. The remaining $24,500 can be financed over either 4 years at the Prime Rate +1% interest, resulting in monthly payments of $615.52, or over 6 years at the Prime Rate +2.5% interest, with monthly payments of $656.68. The promissory note for this financing requires a personal guarantee from the individual guarantors and the franchisee. Natural Awakenings Publishing Corp. does not offer any other direct or indirect financing options.
Performance Metrics
Total US Locations
47
Franchised Units
46
Corporate Units
1
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Natural Awakenings Publishing Corp. has no litigation to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Natural Awakenings Publishing Corp. has no bankruptcy history to report, as no bankruptcies are required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, Natural Awakenings Publishing Corp. franchisees must notify the franchisor in writing between six and nine months before their agreement expires. Franchisees must be in full compliance with their agreement and any other agreements with the franchisor, including having timely paid all monetary obligations and exceeding minimum royalty fees during the last 12 months. Franchisees and their Responsible Agent must meet current qualification and training requirements. They must also make reasonable expenditures to update the appearance and condition of the business's equipment and signage to current brand standards. Finally, franchisees must pay a $5,000 renewal fee and sign the franchisor's then-current standard franchise agreement, which may have significantly different terms and fee rates, as well as execute a general release of claims.
Training & Support Program
Franchisor Assistance
Natural Awakenings Publishing Corp. provides comprehensive support to its franchisees. Before opening, Natural Awakenings Publishing Corp. offers an initial training program for the franchisee, a business manager, and/or a responsible agent. This training is customized and typically lasts 15.5 to 39.5 hours, conducted remotely online, with optional in-person sessions at headquarters or the franchisee's location. The franchisor also provides opening business and management consultation for 30 days after the business launches, along with assistance for website setup and NAPC-provided content. Franchisees are loaned an operations manual and proprietary business materials. Once operational, Natural Awakenings Publishing Corp. assists with magazine layout services for the first digital and print publications, and thereafter charges a monthly fee for minimum or full-service layout. The franchisor maintains its proprietary website and hosts the franchisee's website, providing monthly editorial materials (Publishers Options Packages) and cover art options. Natural Awakenings Publishing Corp. also maintains its software system for customer inquiries and sales and has the right to sell and administer national and regional advertising programs, passing on net revenues to franchisees after a commission. While franchisees are responsible for local advertising, Natural Awakenings Publishing Corp. may require participation in a National Advertising Fund.
Initial Training Hours
40
Training Location
Online/Remote
Ongoing Support
Natural Awakenings Publishing Corp. provides various ongoing support services, though it reserves discretion over the type and timing of assistance. Franchisees receive ongoing consultation from NAPC representatives, delivered off-site, by telephone, or through electronic means, subject to staff availability. The franchisor maintains its proprietary website and hosts the franchisee's website, and provides monthly editorial materials (Publishers Options Packages) and cover art options for magazine production. Natural Awakenings Publishing Corp. may also provide ongoing training, requiring franchisees to attend at least one online or in-person session annually for a $500 fee per participant. Additionally, franchisees are required to attend the Natural Awakenings Publishing Corp. Owners Conference at least once every two years, with a conference fee not exceeding $1,000 per person.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Natural Awakenings Publishing Corp. grants franchisees an exclusive territory defined by a general population of approximately 500,000 people. This population is determined using data compiled from the United States Census Bureau.
Staffing Notes
Natural Awakenings Publishing Corp. expects franchisees to staff their businesses in accordance with criteria and directions provided in the Operations Manual. The franchisee or a designated Business Manager, who must successfully complete the franchisor's training program, is responsible for all day-to-day administrative and management functions. If the franchisee is not directly involved, a Business Manager must be hired. The franchisor does not anticipate franchisees hiring outside writers for local content during the first six months of operations, which influences the initial payroll estimates.