Risk Score
Pending analysis
Investment Range
$45,500 - $251,500
Total US Locations
106
Business Summary
Nutrishop offers franchises for Nutrishop Stores, which are retail businesses specializing in sports nutrition, dietary supplements, vitamins, weight loss products, and related food items. These stores also sell promotional items like apparel, shaker cups, and sports accessories. Nutrishop Stores operate using a proprietary business system, including specific formats, methods, procedures, and branding, to provide a consistent experience for customers seeking health and wellness products.
Corporate History
Nutrishop, Inc. was initially formed in California in 2003 and later converted to a Nevada corporation on February 5, 2013. Prior to offering franchises, Nutrishop granted licenses for Nutrishop Stores, with the first license agreement signed in November 2003. Nutrishop began offering franchises for Nutrishop Stores in July 2018. From April 2019 until March 2023, its former affiliate, Nutrishop Franchising, LLC, offered franchises in New York before Nutrishop, Inc. took over those operations. As of the FDD issuance date, Nutrishop no longer has any licensees.
Financial Overview
Investment Range
$45,500 - $251,500
Franchise Fee (High)
$20,000
Equipment Costs (Low)
$6,000
Equipment Costs (High)
$43,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Nutrishop's financial statements show that it incurred a net loss of $98,320 in 2024, a change from its net income of $152,502 in 2023. The company's cash balance significantly decreased from $392,680 at the end of 2023 to $49,949 at the end of 2024, primarily due to the purchase of investments totaling $405,566. A notable financial aspect is that approximately 78% of Nutrishop's total revenue in 2024 came from a contract with a related party, Global Nutrition Group, which is owned by the same shareholders as Nutrishop. This heavy reliance on a single related-party contract represents a significant concentration of revenue risk for Nutrishop.
Financing Details
Nutrishop does not offer any direct or indirect financing to its franchisees. Additionally, Nutrishop or its affiliates will not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees must arrange all their own funding through third-party sources.
Performance Metrics
Total US Locations
106
Franchised Units
103
Corporate Units
3
Avg Square Footage
700
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
5
Litigation Summary
Nutrishop has a legal history with five concluded matters. Two cases involved one of Nutrishop's directors, Clement Ziroli, Jr. In 2016, the Securities and Exchange Commission filed a complaint against First Mortgage Corporation, where Mr. Ziroli, Jr. was an officer, alleging fraud related to mortgage securities. He settled without admitting or denying, receiving a permanent injunction from certain securities violations for 5 years and ordered to pay over $638,000 in disgorgement, interest, and penalties. In 2010, the Arizona Department of Financial Institutions issued a cease and desist order against First Mortgage Corporation and Mr. Ziroli, Jr. for violations of mortgage banker laws, resulting in a settlement where they paid approximately $39,500 in penalties and fees. Nutrishop itself was involved in three regulatory actions by state agencies. In 2019, the Minnesota Department of Commerce alleged Nutrishop sold unregistered franchises and violated disclosure provisions, leading to a consent order and a $1,300 civil penalty. In September 2019, the Washington Securities Division made similar allegations regarding an unregistered license agreement and failure to disclose prior litigation, resulting in a consent order and $1,000 for investigative costs. In September 2021, the California Department of Financial Protection and Innovation alleged Nutrishop offered and sold 58 unregistered franchises, failed to provide disclosure documents on time, and omitted material facts in applications. This resulted in a consent order to cease violations and pay a $95,000 administrative penalty. All these legal matters have been concluded.
Bankruptcy History
Nutrishop has no bankruptcy history to disclose for itself or its key personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
Nutrishop franchisees must meet several conditions to renew their franchise agreement. These include being in full compliance with their current Franchise Agreement, any other agreements with Nutrishop, and the Operations Manual. They must also sign Nutrishop's then-current form of Franchise Agreement, which may have materially different terms and conditions from their original agreement, although the territory will remain the same, and former licensees renewing will not pay royalty payments. Additionally, franchisees must maintain possession of their approved location and sign a general release of claims against Nutrishop, if permitted by law.
Training & Support Program
Franchisor Assistance
Before opening, Nutrishop helps franchisees by designating and approving their territory and site location. It provides sample plans and specifications for store construction and equipping, instructions for using its brand marks and system, and a list of approved suppliers. Nutrishop also conducts a two-week initial training program for franchisees and their staff, advises on grand opening events for 24 Hour Fitness locations, and sells the initial inventory through its affiliate. Ongoing assistance includes offering refresher training, providing personnel for consultation via phone, video, or in-person (with weekly video calls required for 24 Hour Fitness Locations), and continuous access to an updated Operations Manual. Nutrishop also helps design advertisements, updates approved supplier lists, allows the use of its brand marks and confidential information, inspects stores and records, and continues to sell goods through its affiliate. Nutrishop may also organize optional annual meetings for franchisees.
Initial Training Hours
71
Training Location
California, or other designated location
Ongoing Support
After opening, Nutrishop provides ongoing support through various channels. It periodically offers refresher training courses and makes its personnel available for consultation via phone, video conference, or in-person. For 24 Hour Fitness locations, weekly video conference meetings with Nutrishop personnel are required. Franchisees continue to have access to the Operations Manual, which is updated regularly. Nutrishop also assists in designing and developing advertisements, provides updated lists of approved suppliers, and grants the ongoing right to use its trademarks and confidential information. The franchisor inspects stores and records to ensure compliance and continues to sell goods to franchisees through its affiliate. Nutrishop may also organize annual meetings for franchisees, which are optional for the franchisor but require franchisee attendance if held (not exceeding two days in-person per year).
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Nutrishop defines its franchise territories in a few ways depending on the store type. For a standard Nutrishop Store, the territory is the lesser of a 10-mile radius from the approved location or an area with an estimated population of 400,000 residents. For 24 Hour Fitness Locations, the territory is the lesser of a 5-mile radius or an area with an estimated population of 200,000 residents. For other Pro-Shops not in 24 Hour Fitness locations, the territory includes the commercial facility itself and a 1-mile radius from its center, regardless of population. Nutrishop reserves the right to reduce or modify the size of the territory for standard and 24 Hour Fitness locations to meet the specified population thresholds.
Staffing Notes
Nutrishop requires franchisees to maintain a competent, conscientious, and trained staff. This includes a fully-trained general manager (who can be the franchisee or the managing owner if it's an entity), responsible for day-to-day business activities. This Designated Manager must either complete Nutrishop's initial Orientation Training or receive similar training from the franchisee or managing owner. Franchisees must always employ a Designated Manager capable of training other store personnel. For 24 Hour Fitness locations, franchisees must participate in a weekly video conference meeting with Nutrishop personnel.