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How much does Haven cost?
Initial Investment Range
$917,080 to $7,416,620
Franchise Fee
$162,080 to $210,245
The franchise offered is to operate a business under the "HAVEN™" name that is a "one-stop-shop" for childcare, workspace, and fitness, offering high-quality, fully-licensed childcare for children five years old and younger, shared and private workspaces, and fitness for all adult members of the family in one facility.
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Haven April 18, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 21, 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
Haven Franchising, LLC (Haven LLC) has a very high risk of financial instability. The audited 2024 financials show zero revenue and a net loss of over $367,000. Note 3 to the financials explicitly states that losses are expected to continue and the company relies on its parent for funding. Several state addenda require fee deferrals due to this weak financial condition. This calls into question Haven LLC's ability to provide support or even remain in business.
Potential Mitigations
- A franchise accountant must thoroughly analyze the franchisor's financials, including all notes and the parent company's pledge of support.
- It is crucial to have your attorney investigate the financial assurance requirements, such as fee deferrals, mandated by states like California and Maryland.
- Discuss the franchisor's capitalization and funding plan with your financial advisor to assess long-term viability.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified. Item 20 data shows no franchised outlets have been terminated, ceased operations, or not been renewed because no franchises have been established yet. High franchisee turnover is a significant red flag in established systems, often indicating systemic problems like a lack of profitability or poor franchisor support. A prospective franchisee should always analyze this data over a three-year period to identify trends.
Potential Mitigations
- As the system matures, it is prudent to have an accountant help you analyze the franchisee turnover rates in Item 20 of future FDDs.
- If this data were available, a business advisor could help you compare the turnover rates to industry averages.
- Your attorney can help you formulate questions for current and former franchisees to understand the reasons for any departures.
Rapid System Growth
Medium Risk
Explanation
This risk is not present in the traditional sense, as the system has not yet begun to grow. Item 20 shows zero franchisee growth. However, the franchisor is a new entity with no experience managing a franchise system. Should growth occur, there is a potential risk that support infrastructure may not scale adequately, as the franchisor has no track record of supporting franchisees. This represents a risk of future strain if franchise sales accelerate.
Potential Mitigations
- A business advisor can help you question Haven LLC about its specific plans and resource allocation for scaling franchisee support services.
- Your attorney should scrutinize the franchisor's support obligations detailed in Item 11.
- Have your accountant review the franchisor's financials to assess its capacity to invest in support infrastructure as the system grows.
New/Unproven Franchise System
High Risk
Explanation
Haven LLC is a new, unproven franchise system. It was formed in June 2023 and began offering franchises in October 2023, with zero franchised outlets operating to date. The FDD explicitly highlights its "Short Operating History" as a special risk. While its affiliates have operated two clubs since 2019, the franchisor entity itself lacks a track record in supporting a franchise network, which increases your investment risk.
Potential Mitigations
- Engaging a business advisor to conduct extensive due diligence on the affiliate-operated locations is essential.
- Your attorney should help you understand the heightened risks associated with investing in an emerging franchise system.
- Discuss the affiliate clubs' performance and the parent company's experience with your financial advisor.
Possible Fad Business
Low Risk
Explanation
This risk was not identified. The business model, which combines childcare, shared workspace, and fitness, targets a specific demographic of working families. While novel, this model addresses several sustained market needs rather than appearing to be based on a short-lived trend. However, its long-term viability and resilience to economic shifts are untested in a franchise context. Careful market research is still required to assess demand in your specific location.
Potential Mitigations
- With your business advisor, conduct independent market research to validate long-term demand for this integrated service model in your area.
- Analyze the business's adaptability and potential resilience during economic downturns with your financial advisor.
- Question Haven LLC about their strategies for innovation and evolving the service offerings to maintain long-term relevance.
Inexperienced Management
High Risk
Explanation
Item 2 shows that while the founders have experience operating the business concept since 2019, the key personnel have limited to no experience managing a franchise system. The franchisor entity itself is new. A lack of specific franchising experience in the management team can lead to challenges in providing effective franchisee support, training, and strategic guidance for a growing network, which represents a risk to your investment.
Potential Mitigations
- A business advisor can help you thoroughly question management about how they plan to support a franchise network without prior franchising experience.
- Inquire if Haven LLC has retained experienced franchise consultants or advisors to guide their franchise operations.
- Your attorney can advise on the importance of strong, contractually defined support obligations in Item 11 given this lack of experience.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not indicate that Haven LLC is owned by a private equity firm. A prospective franchisee should be aware that PE ownership can sometimes introduce a focus on short-term returns over the long-term health of the franchise system, potentially affecting franchisee support and costs. You should always verify the ownership structure with your attorney.
Potential Mitigations
- It is wise to have your attorney confirm the franchisor's ownership structure and identify any controlling entities.
- Should a private equity firm acquire the franchisor in the future, your business advisor could help you research the firm's history with other brands.
- An accountant can help you monitor any changes to fees or required spending that may occur after an acquisition.
Non-Disclosure of Parent Company
High Risk
Explanation
This risk is present. Haven LLC is a wholly-owned subsidiary of The Haven Collection, Inc. The franchisor is newly formed, has no revenue, and its financials show it is dependent on its parent for funding. While the parent is disclosed and has pledged support through March 2026, the parent's financial statements are not included in the FDD. Without the parent's financials, you cannot fully assess the strength of this financial backing, which presents a significant risk.
Potential Mitigations
- Your attorney should request the financial statements of the parent company, The Haven Collection, Inc., to assess its ability to support Haven LLC.
- Have your accountant analyze the nature and enforceability of the parent's pledge of financial support.
- Discuss the risk of a thinly capitalized subsidiary with your financial advisor.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified. Item 1 states that Haven LLC has no predecessors. This means the current franchisor is the original entity offering franchises for this system. In other cases, a prospective franchisee should be aware that a history of predecessors could mask past issues, such as litigation or high franchisee failure rates under previous ownership, which would require careful investigation.
Potential Mitigations
- It is always a good practice to have your attorney verify the franchisor's corporate history and confirm the absence of predecessors.
- Your business advisor can help research the history of the brand itself, even if the franchisor entity has no legal predecessors.
- When predecessors exist, speaking with long-term franchisees about their experiences under previous ownership is crucial.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 states that there is no litigation required to be disclosed. A clean litigation history is a positive sign, but it does not eliminate all risk. A franchisee should still conduct due diligence, as disputes can exist that have not yet resulted in formal legal action. A pattern of franchisee-initiated lawsuits alleging fraud or misrepresentation in other FDDs would be a major red flag.
Potential Mitigations
- It is prudent to have your attorney conduct an independent public records search for any litigation involving the franchisor or its principals.
- A business advisor can guide you in asking current and former franchisees if they are aware of any significant disputes within the system.
- Always consider the dispute resolution clauses in Item 17, as they dictate how any future conflicts will be handled.
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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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
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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
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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
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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
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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
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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.