Risk Score
Pending analysis
Investment Range
$24,550 - $196,500
Franchise Fee
$15,000
Total US Locations
4
Business Summary
Weighless MD operates weight loss and wellness centers, providing services and products aimed at helping the general public manage weight and improve overall wellness. The business operates as a stand-alone concept or can be added on to an existing beauty, spa, or healthcare business. Weighless MD franchisees must operate their center according to the franchisor's standards and specifications.
Corporate History
Weighless MD Franchises, LLC was formed as a Wisconsin Limited Liability Company on March 9, 2022. The company began offering franchises in 2022. Weighless MD Franchises, LLC has an affiliate, Weighless MD, LLC, also a Wisconsin limited liability company, which was formed in November 2014 and has operated outlets similar to the franchised business since 2015. The franchisor itself has not operated a business of the type being franchised or offered franchises in any other line of business.
Financial Overview
Investment Range
$24,550 - $196,500
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$35,000
Royalty %
5.5%
Marketing %
1.5%
Equipment Costs (Low)
$500
Equipment Costs (High)
$61,500
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Weighless MD Franchises, LLC indicate that the company has sustained losses since its inception and currently has insufficient working capital to operate for the upcoming year without securing additional capital from its members. These conditions raise substantial doubt about Weighless MD Franchises, LLC's ability to continue as a going concern. This financial situation also calls into question the franchisor's ability to provide services and support to its franchisees.
Financing Details
Weighless MD does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of the franchisee.
Performance Metrics
Total US Locations
4
Franchised Units
2
Corporate Units
2
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Weighless MD has no litigation to report in Item 3 of its Franchise Disclosure Document. The franchisor states that no litigation is required to be disclosed in this item.
Bankruptcy History
Weighless MD has no bankruptcy information to report in Item 4 of its Franchise Disclosure Document. The franchisor states that no bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Weighless MD franchisees must meet several conditions. They must have fully complied with all material provisions of their Franchise Agreement throughout the entire term, made necessary capital expenditures to maintain uniformity with the System's current standards, and satisfied all monetary obligations owed to Weighless MD or its affiliates in a timely manner. Franchisees must not be in default of any agreement with Weighless MD, provide written notice of their intent to renew 9 to 12 months before the current term ends, and sign the then-current Franchise Agreement, which may have different terms. They also need to comply with current qualifications, agree to any new training requirements, sign a general release of claims, and pay a renewal fee equal to 25% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening their Weighless MD franchised business, franchisees receive an initial training program, guidance with opening the business, and access to the Operations Manual. Weighless MD also provides assistance in setting product and service prices, and with obtaining equipment, signs, fixtures, initial inventory, and supplies, offering specifications or lists of approved suppliers. Limited assistance is provided to help conform the premises to local codes and obtain permits, and to assist with construction, remodeling, or decoration. Additionally, Weighless MD provides guidance on the type and number of employees to hire, though franchisees are solely responsible for hiring and managing staff. After opening, Weighless MD offers ongoing advice and guidance by phone or email, makes ongoing training available as needed, and provides updates to the Operations Manual.
Initial Training Hours
132
Training Location
Onsite in Wisconsin and Virtual
Ongoing Support
After opening, Weighless MD franchisees can receive ongoing advice, problem discussions, and general guidance by telephone or electronic correspondence regarding business planning and operations. Weighless MD also makes ongoing training available as deemed necessary and provides franchisees with modifications to the Operations Manual as they become available. Franchisees are responsible for the costs of attending ongoing training sessions, which occur no more than two times per calendar year.
Franchise Requirements
Ideal Candidate Profile
Weighless MD considers candidates for Area Development based on their financial resources, experience in the industry, business experience, and their marketing and sales plans. For individual franchise ownership, the center must be owned by a person permitted under state laws, such as a Physician, Nurse Practitioner, or Dietician. If the franchisee is not a licensed medical professional, they may need to enter into a health care services management agreement with a licensed medical professional to provide services at the center. A licensed Physician or Nurse Practitioner must be on staff. Weighless MD franchisees are expected to have a Drug Enforcement Administration (DEA) license for phentermine.
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
Territory Size Requirements
Weighless MD defines its franchise territories, which are typically exclusive, as a specific geographic region approved by radius, zip codes, or natural or political boundaries. A territory will normally include a 3-mile radius around the franchisee's outlet. The continuation of these territorial rights does not depend on achieving certain sales volumes or market penetration, and Weighless MD will not alter the territory even if there is a population increase.
Staffing Notes
Weighless MD provides assistance with the type and number of employees that should be hired, but franchisees are solely responsible for hiring, firing, compensating, and day-to-day supervision of their staff. Either the franchisee or their approved on-site Designated Manager must dedicate at least 40 hours per week to the day-to-day operations of the franchised business. Weighless MD reserves the right to approve or reject any proposed Designated Manager and may require them to complete the initial training program. Franchisees must inform Weighless MD of their Designated Manager's identity and seek approval for any replacement managers within 60 days, who may also be required to complete training at the franchisee's expense. If the franchisee is an entity, its Designated Manager does not need to hold an equity interest in the entity.