Risk Score
Pending analysis
Investment Range
$5,709 - $46,709
Total US Locations
112
Business Summary
Pritikin ICR LLC licenses healthcare providers like hospitals and cardiology practices to offer a specialized Intensive Cardiac Rehabilitation (ICR) Program. These Pritikin-certified providers teach patients a comprehensive lifestyle education program, including healthy eating, exercise, and lifestyle education, utilizing Pritikin's proprietary methods. The Pritikin ICR Program is approved by federal Centers for Medicare & Medicaid Services (CMS) for reimbursement, and providers integrate it into their existing healthcare facilities.
Corporate History
Pritikin ICR LLC was formed in Delaware on February 5, 2013, to provide intensive cardiac rehabilitation (ICR) programs to healthcare providers. The broader Pritikin Principles, including healthy eating, exercise, and lifestyle education, have been offered by its affiliates and their predecessors since 1974. Specifically, the Florida Pritikin Center LLC began operating in December 1975 and started offering programs similar to the Pritikin ICR Program in January 2012. Pritikin ICR LLC began offering licenses (franchises) for the Pritikin ICR Program to healthcare providers in August 2013, after initially granting an exempt license in March 2013.
Financial Overview
Investment Range
$5,709 - $46,709
Minimum Net Worth
$6,165,500
Royalty %
18.5%
Equipment Costs (High)
$10,000
Working Capital
$13,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pritikin ICR LLC's financial statements show a strong and improving financial position. In 2021, the company had a member's deficit, meaning its liabilities were slightly higher than its assets. However, by the end of 2022 and 2023, Pritikin ICR LLC had significantly positive member's equity, indicating a healthy financial state. This improvement in 2023 was partly due to approximately $2.23 million in outstanding debt and accrued interest being converted into a capital contribution by its sole member. The company has also recorded strong net incomes, with $4.7 million in 2023 and $2.4 million in 2022. Auditors have issued an unqualified opinion on the financial statements, and there are no stated concerns about the company's ability to continue operations. Pritikin ICR LLC did make a $250,000 provision for credit losses in 2022 on a $500,000 promissory note receivable to an unrelated third party, for which litigation was pursued in 2023.
Financing Details
Pritikin ICR LLC does not offer any direct or indirect financing to franchisees, nor does it guarantee any promissory notes, leases, or other obligations franchisees may have with other lenders. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
112
Franchised Units
111
Corporate Units
1
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pritikin ICR LLC has no litigation to report.
Bankruptcy History
Pritikin ICR LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew, Pritikin ICR LLC franchisees must be in compliance with the Certification Agreement. If these conditions are met, the existing agreement automatically renews for successive 3-year periods.
Training & Support Program
Franchisor Assistance
Pritikin ICR LLC provides comprehensive assistance to its certified providers. Before opening, Pritikin ICR LLC issues an approval letter for Medicare enrollment, conducts a detailed training program for the provider's key personnel and staff, and issues a provider certificate upon successful completion of requirements. It also provides an initial set of proprietary informational binders, workshop binders, and patient engagement kits to be used during training and in the program. After opening, Pritikin ICR LLC continues to provide training materials, including patient educational lecture videos via online access, and provides updates to administrative binders and brochures at no charge. It also grants access to its proprietary ICR Portal, a web-based software for data collection, tracking, and monitoring patient attendance and progress. While Pritikin ICR LLC is not required to conduct advertising or spend money on it, or require providers to advertise, it does authorize providers to use its marks for promotion. Pritikin ICR LLC may also choose to offer additional advisory services during the agreement term, though it is not obligated to do so.
Initial Training Hours
122.5
Training Location
Remote, self-paced learning modules and onsite at the franchisee's facility.
Ongoing Support
Pritikin ICR LLC provides ongoing support to its certified providers by making patient educational lecture videos available via secure online access. It also supplies administrative resource binders, patient engagement kits, and brochures at no charge, with updates to binders provided for free. Franchisees are given access to the proprietary ICR Portal for daily data collection, tracking, and monitoring of patient attendance and progress. Pritikin ICR LLC may also offer additional advisory services related to program operations, but these are not mandatory.
Franchise Requirements
Ideal Candidate Profile
Pritikin ICR LLC primarily seeks existing healthcare providers, such as hospitals, acute care facilities, or cardiology practices, as its certified providers. These candidates must have been in business for at least five years and possess a net worth of at least $6,165,500, or have more than two years of experience in operating a medical practice or hospital that offers cardiac rehabilitation services. Additionally, the Pritikin ICR Program's annual gross revenue is not expected to exceed 20% of the provider's overall gross revenue, and any upfront payment to Pritikin ICR LLC must not exceed 10% of the provider's net worth.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staff Count
5
Territory Size Requirements
Pritikin ICR does not grant territories to its franchisees. Instead, it authorizes specific existing healthcare facilities (such as hospitals and cardiology practices) to operate the Pritikin ICR Program at approved locations. Franchisees will not receive an exclusive territory and may face competition from company-owned outlets or other distribution channels. Patients are free to choose any service provider, regardless of where they live. Franchisees are restricted from selling or distributing products or services related to the Pritikin ICR Program at wholesale, to third parties for resale, or through alternate channels like the Internet, catalogs, telemarketing, or direct marketing. Pritikin and its affiliates retain the right to sell their products and services from any location or to any purchaser without compensating the franchisee.
Staffing Notes
Pritikin ICR LLC requires each facility to have at least four "Named Professionals" who actively participate in the Pritikin ICR Program: a Program Director to oversee the program, a Registered Dietitian (who may also serve as the Culinary Chef), a Medical Director, and a Healthy Mind-Set Facilitator. Additionally, an exercise physiologist or nurse is required. Franchisees must also identify staff members to act as a Culinary Chef for cooking classes and a Patient Liaison for patient education and enrollment, though hiring new personnel specifically for these two roles is not mandated, and existing staff can fill them. All Named Professionals, Exercise Physiologists, and Nurses must meet their profession's standards and complete Pritikin ICR LLC's training program to its satisfaction. If a Named Professional leaves, a qualified replacement must be identified and trained within eight weeks.