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Liquivida
How much does Liquivida cost?
Initial Investment Range
$97,650 to $1,184,600
Franchise Fee
$42,000 to $82,000
The franchise is for the establishment and operation of a state-of-the-art medical center offering wellness, anti-aging and vitamin IV infusion products and services to individuals.
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Liquivida May 1, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 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
The franchisor explicitly warns of its financial condition. Audited financial statements for the year ending December 31, 2024, show a net loss of over $26,000 and a negative net worth (deficit) of over $16,000. This financial instability, confirmed by the franchisor's own auditor, may impact its ability to provide ongoing support, invest in the brand, or even remain solvent, posing a significant risk to your investment.
Potential Mitigations
- A franchise accountant should thoroughly review the audited financial statements, including all footnotes and year-over-year trends.
- Discuss the franchisor's plan to achieve profitability and financial stability with your business advisor, and ask the franchisor directly about these plans.
- Your attorney should investigate if any financial assurances, like a bond or escrow, are required by state regulators due to this condition.
High Franchisee Turnover
High Risk
Explanation
The franchisor experienced extremely high turnover in its early stages. In 2022, with only four franchised outlets at the start of the year, the system saw one termination, two units reacquired by the franchisor, and one unit cease operations. This level of turnover relative to the system's size at the time is a significant indicator of potential past issues with the business model, franchisee profitability, or franchisor support, which may present ongoing risks.
Potential Mitigations
- It is crucial to contact former franchisees listed in Exhibit G to understand their reasons for leaving the system; your attorney can help prepare questions.
- Analyzing the multi-year turnover trends with your accountant can help assess if the initial instability has been resolved.
- Question the franchisor directly about the specific circumstances that led to the high turnover in 2022.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD package. While the system has grown, the rate of expansion does not appear to be so rapid as to inherently risk outstripping the franchisor's support capabilities. However, rapid growth in any franchise system can strain resources, potentially affecting the quality of training, site selection assistance, and ongoing operational support for all franchisees.
Potential Mitigations
- In discussions with the franchisor, it is wise to ask about their infrastructure for supporting future growth.
- A business advisor can help you evaluate if the franchisor's staffing and systems are adequate for the projected number of new units.
- Your attorney should review the franchisor's support obligations in the Franchise Agreement to understand their contractual commitments.
New/Unproven Franchise System
High Risk
Explanation
The franchisor began operations in 2017 and started franchising in June 2020, making it a relatively new system. This, combined with its disclosed financial instability and high early-stage franchisee turnover, indicates a higher level of risk. An emerging system may have business processes and support structures that are not yet fully proven, which could affect your operational success and the long-term viability of the brand.
Potential Mitigations
- With your business advisor, conduct extensive due diligence on the long-term viability of the business model and the experience of the management team.
- A frank discussion with the earliest-operating franchisees about their experiences is essential for understanding the system's evolution.
- Your accountant should help you develop conservative financial projections that account for the risks of joining a newer system.
Possible Fad Business
High Risk
Explanation
The franchise operates in the wellness and IV vitamin infusion market. While currently popular, this segment could be susceptible to changing consumer trends, new scientific findings, or increased regulation. There is a risk that the business model's popularity could decline over the 10-year contract term, potentially impacting your long-term return on investment if consumer demand proves to be a fad rather than a sustained market.
Potential Mitigations
- A business advisor can help you research the long-term market projections for IV therapy and wellness services.
- Inquire with the franchisor about their research and development plans for new services to adapt to changing market tastes.
- Speaking with current franchisees about local market demand and customer retention can provide valuable insight.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. Item 2 indicates that the key principals have been involved with the parent company and operating similar affiliate-owned locations since 2014, predating the franchise offering. This suggests they possess operational experience in the specific business. Generally, a lack of direct industry or franchising experience in management can pose a significant risk to franchisees.
Potential Mitigations
- It is always prudent to ask about the specific roles and experience of each member of the support team you will be working with.
- A business advisor can help you assess whether the management team's skills align with the support you will need.
- Discussions with current franchisees can provide firsthand accounts of the management team's competence and responsiveness.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 discloses that the franchisor is a subsidiary of LQV Management, LLC and does not indicate ownership by a private equity firm. When a franchisor is owned by a private equity firm, there may be a focus on short-term profitability and a quick exit, which can sometimes conflict with the long-term health of the franchise system and its franchisees.
Potential Mitigations
- It is always a good practice to ask your attorney to help you understand the complete ownership structure of the franchisor.
- A business advisor can help research the reputation and track record of any parent or controlling entity.
- Reviewing the 'Assignment' clause in the Franchise Agreement with your attorney helps clarify what happens if the franchisor is sold.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 clearly discloses the parent company, LQV Management, LLC, and other affiliated entities. A failure to disclose a parent company can be a significant issue, as it may obscure the true financial backing and control structure of the franchise system, preventing a full risk assessment.
Potential Mitigations
- Your attorney should always verify the corporate structure described in Item 1 to ensure all controlling entities are disclosed.
- If a parent company exists, your accountant should review its financial statements if they are provided or required.
- Understanding the relationships between the franchisor and all its affiliates is a key part of due diligence a business advisor can assist with.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 states that the franchisor has no predecessors. When a franchisor has a predecessor, it is important to investigate that entity's history, as it could reveal inherited issues related to litigation, bankruptcy, or franchisee relations that might affect the current system.
Potential Mitigations
- Even without a formal predecessor, it can be useful to ask your business advisor to research the business history of the franchisor's founders.
- Discussions with the longest-tenured franchisees can provide insight into the system's history and evolution.
- Your attorney can help you understand the legal definition of a 'predecessor' to ensure disclosures are accurate.
Pattern of Litigation
High Risk
Explanation
The franchisor has been involved in significant litigation with a former franchisee. Although the franchisor ultimately prevailed and received a monetary settlement, the franchisee's lawsuit included allegations of misrepresenting the necessary investment. This history, involving serious claims that proceeded to arbitration, suggests a potential for contentious and costly disputes within the system, which is a risk for any new franchisee.
Potential Mitigations
- A thorough review of the details of all disclosed litigation with your franchise attorney is essential to understand the nature of the disputes.
- It is advisable to ask the franchisor for their perspective on the litigation and what steps have been taken to prevent similar issues.
- Contacting other franchisees to discuss their relationship with the franchisor can provide context for the litigation history.
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
Unlock Full Risk Analysis
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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
Unlock Full Risk Analysis
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.
