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Aumbiocenter

AumBio Franchising, LLC
https://www.aumbiocenter.com
1-847-358-5858
1645 Hicks Rd., Unit C, Rolling Meadows, IL 60008

How much does Aumbiocenter cost?

Initial Investment Range

$159,320 to $342,620

Franchise Fee

$50,000 to $125,000

As a Franchisee, you will operate a alternative holistic wellness center, providing client wellness consultations and therapies.

Enjoy our partial free risk analysis below

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Aumbiocenter March 19, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

AumBio Franchising, LLC (AumBio) financials reveal significant instability. As a new entity formed in August 2023, it has no revenue and a negative net worth of ($9) as of year-end 2024. The FDD includes a “Special Risk” about its financial condition, and the Illinois Attorney General required that initial fees be deferred due to this weakness. This calls into question AumBio's ability to support you or even remain solvent, as it is dependent on new franchise sales for operating cash.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the audited financial statements and footnotes to assess the franchisor's capitalization and viability.
  • It is critical for your attorney to review the Illinois Rider and any other state-mandated financial assurances, like fee deferrals, to understand their protections.
  • A discussion with your financial advisor is needed to weigh the heightened risk of investing in a franchisor with such a limited financial history.
Citations: Item 21, Exhibit D, State Specific Addenda (Illinois Rider)

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified as AumBio is a new franchise system with no operating franchisees as of the FDD issuance date. High franchisee turnover, reflected in Item 20, is generally a critical red flag. It can indicate systemic problems such as low franchisee profitability, inadequate support, or a flawed business model, suggesting widespread dissatisfaction within the system. A stable system typically shows low turnover rates.

Potential Mitigations

  • Once franchisees begin operating, it is crucial for your business advisor to monitor future FDDs to analyze turnover rates.
  • Your attorney should advise on how to interpret the different categories in Item 20, such as terminations versus transfers.
  • A consultation with your accountant can help calculate the annual churn rate as a percentage of total outlets to assess system health.
Citations: Not applicable

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package because the franchise system is new and has not yet experienced any growth. While growth is often positive, very rapid expansion can be a risk factor. It may strain a franchisor's resources, potentially leading to a decline in the quality of training, site selection assistance, and ongoing support for all franchisees as the system struggles to keep pace.

Potential Mitigations

  • Your business advisor can help evaluate a franchisor’s infrastructure and capacity for providing support if future growth becomes rapid.
  • It is wise to have your accountant review the franchisor's financial statements to assess if they have the capital to support growth.
  • Your attorney should examine the franchisor's support obligations in the Franchise Agreement to ensure they are specific and enforceable.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

AumBio is a new franchisor, formed in August 2023 with no franchisees operating at the time of this FDD. The document explicitly highlights its “Short Operating History” as a special risk. Investing in a new, unproven system carries a higher risk of business model flaws, underdeveloped support systems, and potential franchisor failure. There is no existing franchisee population to contact for validation of the business model's success or the quality of franchisor support.

Potential Mitigations

  • Given the lack of a franchisee track record, conducting extensive due diligence on the affiliate's three company-owned stores is essential with your business advisor.
  • Your accountant should perform a detailed analysis of the affiliate's business model to create financial projections, as no franchisee data exists.
  • It is advisable for your attorney to negotiate more franchisee-favorable terms to compensate for the higher risk of an unproven system.
Citations: Items 1, 2, 20, 21, Special Risks

Possible Fad Business

Medium Risk

Explanation

The business model is centered on “alternative holistic wellness,” a niche market that may be susceptible to changing consumer trends and skepticism. While the affiliate, Aum-Bio, Inc., has a long operating history suggesting some staying power, the services rely on concepts like bio-resonance therapy which are not mainstream. There is a risk that long-term, broad consumer demand may be limited or could decline if trends shift, impacting your investment's viability.

Potential Mitigations

  • Engage a business advisor to conduct independent market research on the long-term consumer demand for holistic and bio-resonance therapies.
  • You should discuss the business model's resilience to economic shifts and changing wellness trends with your financial advisor.
  • It is important to ask the franchisor about their plans for research, development, and system evolution to stay relevant.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. The President, Kamil Czubacki, is disclosed in Item 2 as having been President of the affiliate operating company since 2010. This indicates significant experience operating the underlying business concept. Generally, a lack of direct industry or franchising experience in the management team can pose a risk, as it may lead to flawed strategies or inadequate support for franchisees.

Potential Mitigations

  • Your business advisor can help you investigate the backgrounds of all key management personnel listed in Item 2.
  • It is a good practice to ask current franchisees about their direct experiences with the management team's competence and support.
  • An attorney can help you understand the implications if key personnel were to leave the company.
Citations: Not applicable

Private Equity Ownership

Low Risk

Explanation

This risk was not identified, as Item 1 does not indicate that AumBio is owned by a private equity firm. When a franchisor is PE-owned, there can be a risk that management decisions prioritize short-term investor returns over the long-term health of the system. This could manifest as reduced support, increased fees, or a quick sale of the franchise system, creating uncertainty for franchisees.

Potential Mitigations

  • Your business advisor can help research the ownership structure of any franchisor you consider.
  • If a franchisor is PE-owned, investigating the firm's history with other franchise brands is a crucial step for your attorney.
  • It is wise to discuss any changes in system culture or support since a PE acquisition with current franchisees.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk does not appear to be present. Item 1 discloses an affiliate, Aum-Bio, Inc., but does not mention a parent company. In some franchise systems, a thinly capitalized franchisor subsidiary may be controlled by a larger, undisclosed parent. Failure to disclose a parent company and its financial data, when required, can obscure the true financial backing and stability of the system, hiding potential risks from prospective franchisees.

Potential Mitigations

  • Your attorney can help investigate the franchisor's corporate structure to determine if a controlling parent entity exists.
  • If a parent company exists and provides guarantees, it is critical that your accountant reviews its financial statements.
  • A discussion with your attorney is needed to understand the legal relationship and obligations between a franchisor and its parent.
Citations: Not applicable

Predecessor History Issues

High Risk

Explanation

AumBio clearly identifies Aum-Bio, Inc. as its predecessor and affiliate in Item 1. However, the predecessor has a negative history disclosed in Item 3: a regulatory enforcement action from the state of Illinois. This inherited history of regulatory issues related to marketing claims is a significant risk factor for you as a new franchisee entering the system.

Potential Mitigations

  • It is crucial for your attorney to review the details of any predecessor's history, especially regarding litigation or regulatory actions.
  • A business advisor can help you research the predecessor's reputation and track record independently.
  • You should ask long-term employees of the affiliate company about their experiences under the predecessor entity, if possible.
Citations: Item 1, Item 3

Pattern of Litigation

High Risk

Explanation

Item 3 discloses a significant regulatory action against AumBio’s predecessor and principals by the Illinois Department of Financial and Professional Regulation. This resulted in an Agreed Order to Cease and Desist related to making marketing claims about health procedures that were not supported by medical literature. While not franchisee litigation, this government enforcement action represents a major red flag about the legality and viability of the core business marketing strategy.

Potential Mitigations

  • Your attorney must carefully analyze the details and implications of the regulatory action disclosed in Item 3.
  • A discussion with a regulatory law specialist could provide insight into the risks associated with this type of business model.
  • It is important to understand from the franchisor what specific changes were made to their marketing and operations to comply with the order.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
1
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
6
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
4
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
2
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
10
5
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.