NexGenEsis Healthcare Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$124,500 - $362,695
Franchise Fee
$27,500
Total US Locations
14
Business Summary
NexGenEsis Healthcare businesses specialize in providing non-surgical, non-opioid pain relief and injury rehabilitation services. These physician-supervised clinics offer a range of treatments including non-invasive neuropathy treatments, platelet-rich plasma, alpha 2 macroglobulin, and bone marrow aspirate injections, which are derived from the patient's own body to aid natural healing. Additionally, some NexGenEsis Healthcare businesses may offer treatments for weight loss, hair loss, and erectile dysfunction.
Corporate History
NexGen Franchising, LLC was formed as a Mississippi limited liability company on June 20, 2022. The company operates under its corporate name and the name NexGenEsis Healthcare, and it began offering franchises in August 2022. NexGen Franchising, LLC does not conduct business under any other name or in any other line of business and has no predecessor. Its parent entity, EAD NexGenix LLC, owns and licenses the intellectual property used by the franchise. Several affiliates, including NexGen Healthcare LLC, NexGen Healthcare Hawaii LLC, and NexGen Healthcare Clinics LLC, operate company-owned NexGenEsis Healthcare Businesses, with some locations established as early as September 2019. Other affiliates, NexGen Medical Supplies, LLC and EAD Advertising, LLC, serve as approved suppliers for products and advertising services to franchisees.
Financial Overview
Investment Range
$124,500 - $362,695
Franchise Fee (Low)
$27,500
Franchise Fee (High)
$55,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$50,000
Equipment Costs (High)
$154,000
Working Capital
$65,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial condition of NexGen Franchising, LLC, as reflected in its financial statements, raises substantial doubt about the company's ability to continue as a going concern. This is primarily due to a net capital deficiency and incurred losses from operations. Management's plans to address these issues involve continuing to expand the franchise system. The franchisor's financial condition may call into question its ability to provide services and support to franchisees.
Financing Details
NexGen Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
14
Franchised Units
6
Corporate Units
8
Avg Square Footage
1,250
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
NexGen Franchising, LLC reports no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
NexGen Franchising, LLC's Chief Development and Sales Officer, Nathanael Job Millhouse, filed a voluntary petition for Chapter 13 bankruptcy on January 6, 2017. This personal bankruptcy was due to financial difficulties with a previous business where Mr. Millhouse had personally guaranteed some debt. The bankruptcy plan was confirmed on February 28, 2017, completed on April 14, 2022, and he received a discharge on May 16, 2022. Unsecured claims totaling $155,624.63 were discharged without full payment. All matters related to this bankruptcy have been concluded.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, NexGen Franchising, LLC franchisees must provide written notice between 60 and 180 days before the current term expires. They must not be in default of their agreement or any other agreements with the franchisor or its affiliates, and must not have received more than three separate default notices in the 12 months prior to renewal. Franchisees are required to sign the then-current successor franchise agreement and all associated documents, which may have different terms and conditions, including potentially higher royalty and advertising contributions. They must also sign a general release of all known and unknown claims against NexGen Franchising, LLC and its affiliates. Additionally, franchisees need to ensure they have the right to maintain possession of their approved premises, make any necessary renovations, refurbishments, and modernizations to meet current System standards for a newly opened franchised business, and take any other actions reasonably required by the franchisor.
Training & Support Program
Franchisor Assistance
NexGen Franchising, LLC provides franchisees with various forms of assistance. Before opening, the company offers an initial training program for up to three people at no charge, a confidential Franchise Operations Manual, and advice on selecting a suitable location. It also reviews lease agreements, designates the territory, provides basic design and layout specifications, and offers grand opening assistance with a two-day on-site visit for the first franchised business. Franchisees also receive a list of required furniture, fixtures, equipment, products, services, and approved suppliers. Ongoing support includes informing franchisees of mandatory standards and procedures, providing advice on operations based on reports or inspections, and offering additional training for new hires or refresher courses (which may incur additional fees). NexGen Franchising, LLC also allows continued use of confidential materials and Marks. Optionally, the franchisor may develop and administer a Brand Fund for system-wide marketing, provide marketing materials (with potential modification fees), conduct periodic on-site visits (which may incur fees and expenses), and organize national or regional conferences.
Initial Training Hours
42
Training Location
Houston, TX & virtually
Ongoing Support
After opening, NexGen Franchising, LLC provides ongoing support by informing franchisees of mandatory standards, specifications, and procedures for business operations. Upon reasonable request, the franchisor offers advice and guidance on the franchised business's operation, based on reports or inspections, through written materials, electronic media, or telephone. Additional training may be provided for newly hired personnel on brand and system guidelines, refresher courses, or any other training deemed necessary or requested by the franchisee, though additional fees may apply. Franchisees also continue to use confidential materials, including the Franchise Operations Manual and the Marks. Optionally, NexGen Franchising, LLC may offer additional assistance such as modifying the System, providing marketing materials (which may incur modification fees), making periodic visits to the clinic (for which expenses and training charges may be reimbursed by the franchisee), maintaining a Brand Fund, and holding national or regional conferences.
Franchise Requirements
Ideal Candidate Profile
NexGen Franchising LLC seeks individuals or entities capable of operating a healthcare business that provides non-surgical, non-opioid pain relief and injury rehabilitation. Ideal candidates must be diligent in complying with all federal, state, and local healthcare laws and regulations, including those concerning the corporate practice of medicine. Depending on state laws and their own qualifications, franchisees will either need to be licensed medical professionals capable of directly managing and operating the medical practice (Healthcare Center Business model) or designate an approved Authorized Medical Provider to operate the clinic (Clinic Management Business model). If the franchisee is a legal entity, a Responsible Owner with at least a 25% equity interest is required to oversee day-to-day operations, either directly or through an approved Franchise Manager. Responsible Owners are also solely responsible for ensuring all medical personnel are properly licensed, board-certified, and experienced in their respective fields. For Area Developers, the ability to develop and open a minimum of two NexGenEsis Healthcare Franchises is required.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
hands-on
Territory Type
Non-Exclusive
Territory Size Requirements
NexGen Franchising, LLC defines its franchise territories based on geographic area and population demographics, typically determined by zip codes. Each territory generally contains a population of approximately 175,000 to 200,000 persons, with a minimum population of at least 150,000 people.
Staffing Notes
NexGen Franchising, LLC requires franchisees to ensure their NexGenEsis Healthcare Clinic is adequately staffed with both medical and non-medical personnel to meet the business's needs. The franchisee's Responsible Owner, or an approved Franchise Manager, must be actively involved in the day-to-day operations and provide on-site management and supervision. If a Franchise Manager is used, the Responsible Owner remains responsible if the manager is unable to perform duties. The franchisee, or the Authorized Medical Provider in a Clinic Management Business model, holds sole responsibility for all employment decisions, including hiring, training, directing, scheduling, supervising, and compensating employees and independent contractors, and ensuring compliance with all wage, tax, and labor laws. All medical personnel must be duly licensed and board-certified as required by their respective states. Clinics must operate for minimum hours and days specified in the Franchise Operations Manual, typically every day except approved national holidays. Franchisees must clearly identify themselves as independent owners in all dealings and ensure employees understand they are employed by the franchisee, not NexGen Franchising, LLC.