Risk Score
Pending analysis
Investment Range
$103,500 - $228,000
Franchise Fee
$35,000
Min Cash Required
$25,000
Total US Locations
8
Business Summary
Nora Mental Health, LLC offers franchisees the opportunity to operate a Nora Mental Health clinic providing outpatient mental health services. These services include counseling, medication management, and employee assistance programs. Nora Mental Health utilizes a proprietary method, a form of cognitive behavioral therapy, in its treatment. Franchisees can choose between a Direct Ownership Model, where the franchisee may or may not be a Licensed Provider depending on state law, or a Managed Operation Model, where the franchisee provides management, administrative, marketing, technology, and facility services to a Practice Entity operated by Licensed Providers.
Corporate History
Nora Mental Health, LLC is a Delaware limited liability company that was organized on November 28, 2022. The company began offering Nora Mental Health franchises on December 10, 2022. Nora Mental Health, LLC does not have any parent or predecessor companies and does not conduct business under any other name or offer franchises in any other line of business. An affiliate, Midwest Wellness LLC, a Michigan limited liability company, has operated four mental health clinic businesses in Michigan since March 2018, which serve as models for training.
Financial Overview
Investment Range
$103,500 - $228,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$25,000
Royalty %
7.5%
Equipment Costs (Low)
$12,000
Equipment Costs (High)
$63,000
Working Capital
$42,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Nora Mental Health, LLC's financial statements for the year ended December 31, 2023, received an unqualified opinion from its independent auditor. The auditor's report also includes a 'Going Concern' note, stating that the Company's ability to continue as a going concern is dependent upon developing sales and obtaining additional capital and financing. While the Company believes in the viability of its strategy, there are no assurances to that effect. The financial statements do not include adjustments to reflect the possible effects of this uncertainty on the recoverability and classification of assets or liabilities.
Financing Details
Nora Mental Health, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Nora Mental Health, LLC does not guarantee any notes, leases, or other obligations for its franchisees. Franchisees will need to arrange their own funding.
Performance Metrics
Total US Locations
8
Franchised Units
4
Corporate Units
4
Avg Square Footage
1,400
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Nora Mental Health, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. The document states that no litigation is required to be disclosed in this item.
Bankruptcy History
Nora Mental Health, LLC has no bankruptcy history to report. The FDD explicitly states in Item 4 that no bankruptcy is required to be disclosed for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the agreement, Nora Mental Health, LLC franchisees (or their owners if an entity) must provide written notice between 120 and 180 days before the current term expires. They must not be in default under their agreement or any other agreement with Nora Mental Health, LLC or its affiliates. Franchisees are required to sign the then-current form of franchise agreement and all related documents, complete any necessary refresher training, and if required, remodel their clinic to meet current brand standards. They must also have the right to maintain possession of their premises for the renewal term and sign a general release in favor of Nora Mental Health, LLC. A $500 renewal fee is also required.
Training & Support Program
Franchisor Assistance
Nora Mental Health, LLC provides its franchisees with several forms of assistance. Before opening, Nora Mental Health, LLC conducts an initial training program for up to two individuals tuition-free and loans one copy of the confidential Operations Manual. Nora Mental Health, LLC also provides specifications for fixtures, furnishings, equipment, and signage, and assists with creating a pre-opening marketing plan. Nora Mental Health, LLC estimates that a typical franchisee will be ready to open their business six to nine months after signing the franchise agreement. During operation, Nora Mental Health, LLC informs franchisees of mandatory standards and procedures, offers advice on operations based on reports or inspections, and provides guidance on advertising and marketing. Nora Mental Health, LLC may offer additional training for newly hired personnel or refresher courses, which may incur additional fees. Franchisees also get access to confidential materials, including the Manual and Marks, and Nora Mental Health, LLC maintains and administers a Marketing Fund to promote the brand. Nora Mental Health, LLC hosts a page on its website for each franchised business and provides an Electronic Medical Records (EMR) system with integrated billing and a complete billing service, along with sample templates and forms.
Initial Training Hours
42
Training Location
Niles, MI or online/your location or at our affiliate's location
Ongoing Support
After opening, Nora Mental Health, LLC provides continuing assistance to its franchisees. This includes informing them of mandatory operating standards and procedures, offering advice on clinic operations based on reports or inspections, and providing guidance on advertising and marketing. Nora Mental Health, LLC may offer additional training for newly hired personnel, refresher training courses, and other requested assistance, for which additional fees may apply. Franchisees continue to use confidential materials like the Operations Manual and the brand Marks. Nora Mental Health, LLC maintains and administers the Marketing Fund and hosts a page on its website for each franchised business. Nora Mental Health, LLC also provides an Electronic Medical Records (EMR) system with integrated billing services and a 24/7 live call center, as well as sample templates and forms. Nora Mental Health, LLC may hold periodic national or regional conferences to discuss business and operational issues.
Franchise Requirements
Ideal Candidate Profile
Nora Mental Health, LLC offers two models for franchisees: a Direct Ownership Model and a Managed Operation Model. Under the Direct Ownership Model, the franchisee must be a Licensed Provider or operate in a state that permits non-Licensed Providers to own such businesses. Under the Managed Operation Model, Nora Mental Health, LLC typically does not offer clinics to Licensed Providers; instead, the franchisee provides management and administrative services to a Practice Entity staffed by Licensed Providers. In both models, the franchisee must designate an owner with at least a 10% ownership interest as the 'Principal Executive,' who has authority over all business decisions and the power to bind the franchisee. A trained 'Designated Representative' is also required to manage day-to-day operations, who may also be the Principal Executive. Franchisees under the Managed Operation Model must also hire an attorney to ensure their Management Agreement complies with all applicable local, state, and federal laws.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
Exclusive
Staff Count
6
Territory Size Requirements
Nora Mental Health, LLC grants franchisees an Exclusive Territory that will include a radius from their approved address containing at least 100,000 individuals, according to the most recent census data. However, if the population within seven miles of the approved address is less than 100,000, a smaller territory may be awarded. Nora Mental Health, LLC reserves the right to grant a larger territory at its discretion. The territory size will not be altered due to population changes unless Nora Mental Health, LLC decides otherwise. Certain major metropolitan areas may have smaller territories due to population density.
Staffing Notes
Nora Mental Health, LLC requires that each Nora Mental Health Clinic have one or more licensed and qualified professionals, such as social workers, psychologists, mental health counselors, therapists, nurse practitioners, MDs, DOs, and licensed counselors (referred to as 'Licensed Professionals'). If the franchisee offers medication management services through Licensed Providers, they must hire and retain at least one medication management assistant for each Qualified Prescriber working at the franchised business. This assistant must work an equivalent number of hours per week as the Qualified Prescriber to ensure adequate support. Franchisees are responsible for hiring, training, directing, scheduling, and supervising their employees and independent contractors in the day-to-day operations of the clinic. The Franchise Agreement does not interfere with the independent exercise of medical judgment by the medical staff.