One Glow
Initial Investment Range
$262,096 to $535,256
Franchise Fee
$115,246 to $172,306
We offer prospects the right to independently own and operate a business that provides sauna sessions for relaxation, cleaning or other specialized purposes, including but not limited to chromotherapy, red light therapy and halotherapy.
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One Glow April 30, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
One Glow Franchise, LLC (the franchisor) explicitly warns that its financial condition calls into question its ability to support you. The Item 21 audited financial statements confirm this, showing significant net losses in 2023 and 2024, with operations funded by owner contributions rather than profits. This financial weakness may impact the franchisor's ability to provide promised support, grow the brand, or even remain solvent, creating substantial risk for your investment.
Potential Mitigations
- A franchise accountant should meticulously analyze the audited financial statements, including the net losses and reliance on owner funding.
- Inquiring with your business advisor about the franchisor's capitalization and ability to sustain support operations without profitable revenue is essential.
- Your attorney should investigate if any financial assurances, like a bond or escrow, are required by your state due to the weak financials.
High Franchisee Turnover
Medium Risk
Explanation
The system is very new, having only two franchised outlets at the end of 2024, one of which was a conversion of a former affiliate-owned unit. While low turnover is expected in a new system and therefore no negative trend is apparent, the small number of franchisees means there is very little data to assess franchisee satisfaction or the long-term viability of the business model. This lack of history presents a significant risk.
Potential Mitigations
- Contacting all current franchisees listed in Item 20 is essential to understand their early experiences and satisfaction levels.
- A discussion with your business advisor about the risks of joining a nascent system with a very small franchisee base is critical.
- Your accountant can help you model the financial risks associated with being one of the first franchisees in an unproven system.
Rapid System Growth
Medium Risk
Explanation
Item 20 shows the system is growing from a very small base, with plans for significant expansion outlined in Table 5. However, the Item 21 financial statements show a company that is not yet profitable and is reliant on owner contributions. Rapidly adding franchisees could strain the limited resources of this new franchisor, potentially compromising its ability to provide the adequate training, site selection, and operational support necessary for new locations to succeed.
Potential Mitigations
- It is important to ask the franchisor about its specific plans and budget for scaling its support staff to match franchise sales.
- A conversation with your business advisor can help assess whether the franchisor's current infrastructure appears capable of handling projected growth.
- Your attorney can help you understand the support obligations detailed in the Franchise Agreement and whether they are contractually enforceable.
New/Unproven Franchise System
High Risk
Explanation
The franchisor explicitly discloses that it has a "Short Operating History" and is at an early stage of development, making it a riskier investment. It was formed in late 2022 and began franchising in 2023. The system is very small, with only two franchised outlets as of year-end 2024. This newness means the business model, brand recognition, and support systems are largely unproven in a franchise context, which increases your risk.
Potential Mitigations
- A thorough due diligence process, guided by your attorney and business advisor, is critical to vet this emerging brand.
- You should speak with all existing franchisees to learn about their initial experiences with the support systems and management.
- Having your accountant review the capitalization and financial projections is vital to assess the higher risks associated with a new system.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A fad business is one tied to a fleeting trend, which can create long-term risk for franchisees who are locked into a 10-year agreement. While the wellness and sauna industry has seen growth, its long-term mass-market appeal is something you must assess. The franchisor does not present evidence of specific strategies to adapt to changing wellness trends, which could be a concern for long-term viability.
Potential Mitigations
- Conducting independent market research with a business advisor to assess the long-term consumer demand for specialized sauna studios is crucial.
- You should evaluate the business model's resilience to economic shifts and changing consumer wellness preferences.
- In discussions with the franchisor, inquire about their long-term vision and plans for innovation and adaptation.
Inexperienced Management
Medium Risk
Explanation
The franchisor is a new entity, and its CEO has a background in finance rather than extensive franchise operations. However, this risk appears somewhat mitigated. The franchisor has hired a Chief Operating Officer, John Kutac, who has significant executive-level experience with several other franchise systems, including WellBiz Brands. This brings needed operational franchise expertise to the management team, though the overall franchisor entity itself remains new and relatively inexperienced.
Potential Mitigations
- In your due diligence calls, asking current franchisees about the quality of operational support and the effectiveness of the management team is important.
- A business advisor can help you assess the blend of skills on the leadership team and its overall capacity to support a growing system.
- Your attorney can help clarify the specific roles and responsibilities of the key executives as they relate to franchisee support.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package, as there is no disclosure in Item 1 indicating that the franchisor is owned by a private equity firm. This type of ownership can be a risk because PE firms often have short-term investment horizons, which may lead to decisions that prioritize investor returns over the long-term health of the franchise system. It is important to always understand the complete ownership structure of a franchisor.
Potential Mitigations
- It is good practice to ask your attorney to verify the full ownership structure of the franchisor entity.
- Working with a business advisor to research the reputation and track record of any parent company or major investor is a prudent step.
- Franchisee interviews can reveal if there have been recent changes in ownership or management philosophy.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The franchisor discloses its parent company, Glow Getter Holdings, LLC. However, the FDD does not include the parent's financial statements. Given that the franchisor entity itself has significant operating losses and is financially dependent on its owners, the financial health of the parent is material to assessing your risk. The absence of the parent's financials prevents a complete assessment of the ultimate financial stability and backing of the franchise system.
Potential Mitigations
- Your accountant should review the franchisor's financials and note the dependency on the parent/members for funding.
- It is wise to ask the franchisor why the parent company's financial statements are not included for review.
- An attorney can advise on whether the parent's financials should have been included under franchise disclosure rules.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor states in Item 1 that it does not have any predecessors that require disclosure. This is consistent with the fact that the company is a very new entity, formed in 2022. In franchise systems that have been acquired, reviewing the history of predecessors is important for identifying any inherited issues, such as past litigation or high franchisee turnover, that could affect the current system.
Potential Mitigations
- Always have your attorney review Item 1 carefully to identify any disclosed predecessors and their history.
- If a predecessor exists, researching their track record and speaking with long-term franchisees about their experience is crucial.
- A business advisor can help you understand the implications of any past brand acquisitions or system mergers.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 states that there is no litigation that is required to be disclosed. This is a positive sign, although not unusual for a very new franchisor that has only recently begun selling franchises. A pattern of litigation, especially franchisee-initiated lawsuits alleging fraud or breach of contract, is a significant red flag in more established systems, as it can indicate systemic problems.
Potential Mitigations
- Your attorney should always review Item 3 thoroughly for any disclosed litigation and explain its potential significance.
- It is a good practice to conduct independent online searches for any litigation involving the franchisor or its principals that may not be disclosed.
- Asking current franchisees about any disputes or legal issues within the system can provide valuable context.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
