Success On The Spectrum Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$315,000 - $842,700
Franchise Fee
$19,750
Total US Locations
31
Business Summary
Success On The Spectrum operates autism treatment centers that provide Applied Behavioral Analysis (ABA) therapy, speech therapy, occupational therapy, and social skills classes. These services are offered to developmentally delayed children and young adults, along with other related products and services.
Corporate History
SOS Franchising, LLC, operating as Success On The Spectrum, was established as a Texas Limited Liability Company on March 21, 2018. The company began offering franchises to third parties on September 13, 2018. An affiliate, Success on the Spectrum, LLC, was established earlier in October 2015 and operates a business substantially similar to the franchise offered, also owning the Licensed Marks. Other affiliates include SOS MC, LLC (established April 2022, also operating a similar business), SOS Distribution, LLC (established February 2019, providing uniforms and branded materials), and SOS Land Ho, LLC (established February 2019, owning a facility used for franchisee training).
Financial Overview
Investment Range
$315,000 - $842,700
Franchise Fee (Low)
$19,750
Franchise Fee (High)
$39,500
Royalty %
5%
Equipment Costs (Low)
$62,000
Equipment Costs (High)
$320,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Success On The Spectrum's financial condition, as reflected in its financial statements, raises concerns about the franchisor's financial ability to provide services and support to its franchisees. The company reported a net loss of $149,026 and a negative total equity of $34,295 for the year ended December 31, 2023. Additionally, its current liabilities exceeded current assets, indicating negative working capital.
Financing Details
Success On The Spectrum does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations. While the franchisor may assist franchisees in obtaining financing in the future, such arrangements are not currently available or guaranteed.
Performance Metrics
Total US Locations
31
Franchised Units
29
Corporate Units
2
Avg Square Footage
5,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Success On The Spectrum has disclosed two litigation cases, both of which were filed and resolved in 2022. The first case involved Hyung Sun Lee and Autism Family Friendly, LLC, who alleged that Success On The Spectrum breached a Franchise Agreement and interfered with contractual relationships. Success On The Spectrum denied these claims and filed counterclaims. This matter was settled with mutual releases and the franchisor taking back the franchisee's territory, leading to dismissal with prejudice. The second case was brought by Duane Kamias, a prospective franchisee, who claimed that Success On The Spectrum agreed to compensate for professional fees incurred during due diligence. Success On The Spectrum denied the allegations, and this dispute was also settled out of court with mutual releases and dismissal with prejudice to avoid litigation costs.
Bankruptcy History
Success On The Spectrum has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Success On The Spectrum franchisees must be in full compliance with their franchise agreement and all related ancillary agreements, and provide 180 days' prior written notice of their intent to renew. They must demonstrate that they have the legal right to occupy their center location for the entire renewal term or secure a new approved location. Franchisees are also required to update, remodel, and upgrade their center to meet the franchisor's then-current standards. They must pay a $1,500 renewal fee, sign the franchisor's then-current renewal franchise agreement and related ancillary agreements, which may have materially different terms, and execute a general release in favor of the franchisor. Additionally, franchisees and their owners may need to complete any additional training designated by the franchisor.
Training & Support Program
Franchisor Assistance
Success On The Spectrum provides pre-opening assistance that includes granting the franchise, defining a designated territory upon site approval, and providing access to confidential operations manuals. The franchisor reviews and approves proposed sites, lists approved suppliers, and specifies required signs, equipment, furniture, and fixtures. Success On The Spectrum also identifies the franchisee's center on its website and creates a Google My Business profile and Facebook page. Initial training is provided free of charge for three key staff members (owner, operating manager, office manager, and a certified behavior analyst), covering about two weeks of instruction in Houston, TX, and virtually. This training includes airfare up to $400 per person and lodging at the franchisor's 'SOS House.' Post-opening, franchisees receive monthly virtual system-wide training for key staff, communication of operating standards, and marketing support, with optional annual conferences for a fee. The franchisor also assists with health insurance credentialing and sets up phone, fax, and text numbers for the center.
Initial Training Hours
80
Training Location
Corporate headquarters in Houston, TX, and virtual
Ongoing Support
After opening, Success On The Spectrum requires that franchisees' office managers, operating managers, and behavior analysts attend monthly virtual system-wide training. The franchisor also reserves the right to require attendance at in-person system-wide training programs, not exceeding five days per calendar year. Additional supplemental training may be requested by the franchisee or required by the franchisor, subject to fees. The franchisor communicates updated operating standards, marketing standards, and approved vendors lists.
Franchise Requirements
Ideal Candidate Profile
Success On The Spectrum seeks franchisee candidates who, or whose managing owner, will be personally responsible for the full-time, daily management and supervision of the franchise. The managing owner must dedicate their full time and effort to the business and must serve as one of the three required key staff members (operating manager, office manager, or certified behavior analyst). The franchisee, or a hired employee, must be a certified behavior analyst and maintain all necessary certifications for the location. Ideal candidates must possess good moral character, sufficient business experience, aptitude, and financial resources to operate a Success On The Spectrum Center. All key staff, including the franchisee or managing owner, must satisfactorily complete the franchisor's initial training and undergo yearly criminal background checks, with no history of violent crime or sexual misconduct.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
5
Territory Size Requirements
Success On The Spectrum territories are generally defined by a 3-mile radius from the center location, though this may be adjusted to be smaller based on factors like population density, demographics, and geographical boundaries. The designated territory can be identified using zip codes, boundary streets, highways, county lines, or other recognizable markers.
Staffing Notes
Success On The Spectrum requires franchisees to employ three separate key staff members: an Operating Manager, an Office Manager, and a Behavior Analyst. The managing owner of the franchise must fill one of these three key roles. All key staff are required to complete the franchisor's initial training program. The Behavior Analyst, whether the owner or an employee, must obtain and maintain all required certifications for the center's location. All key staff must dedicate their full-time effort to the center. Replacement key personnel must complete required training within 60 days of being hired. Franchisees are prohibited from hiring anyone convicted of a felony or with a history of violent crime or sexual misconduct, and all staff must undergo yearly criminal background checks. Franchisees are responsible for hiring additional technicians and administrative support staff, and ensuring all employees have necessary licenses and certifications.