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Live Hydration Spa

Live Hydration Spa Franchise LLC
https://www.livehydrationspa.com
1-531-999-3030
18881 West Dodge Road, Suite 206C, Omaha, Nebraska 68022

How much does Live Hydration Spa cost?

Initial Investment Range

$227,575 to $575,783

Franchise Fee

$88,000

The franchise that we offer is for a Live Hydration Spa business that offers and provides wellness products and services including IV hydration and vitamin therapy, Botox injectables, ionic detoxification, oxygen therapy, and related products and services to customers from a spa facility and approved third party sites.

Enjoy our partial free risk analysis below

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Live Hydration Spa April 17, 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
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor's audited financial statements reveal a significant risk. As of year-end 2024, the company has a negative Members' Equity (Deficit) of over $1 million, indicating technical insolvency where liabilities exceed assets. While it posted a small net income in 2024, its financial foundation appears weak. The FDD also includes an explicit "Special Risks" warning about the franchisor's financial condition, calling into question its ability to provide support.

Potential Mitigations

  • A thorough review of the franchisor's financial statements with your accountant is essential to understand the implications of the negative net worth and its potential impact on support.
  • Seeking advice from your franchise attorney regarding the explicit financial condition warnings is critical before proceeding.
  • Developing a contingency plan with your business advisor for potential disruptions in franchisor support is a prudent measure.
Citations: Item 21, Exhibit D

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a high rate of franchisee turnover, a significant red flag. In 2024, four franchises were terminated out of a starting base of 28, a termination rate of over 14%. Additionally, two franchises were transferred. High turnover can indicate systemic issues such as franchisee unprofitability, dissatisfaction, or inadequate support. The FDD's "Special Risks" section also warns about a significant number of franchisees who have not yet opened their outlets.

Potential Mitigations

  • It is imperative to contact a significant number of current and former franchisees from the lists in Item 20 to discuss their experiences and reasons for leaving.
  • Your accountant should help you analyze the turnover data across all categories (terminations, transfers, ceased operations) to assess the system's stability.
  • Discussing the high turnover rate directly with the franchisor is advisable, and your attorney can help formulate the appropriate questions.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchise system is undergoing very rapid expansion, growing from 5 total outlets at the start of 2022 to 32 by the end of 2024. Such fast growth, when combined with the franchisor's disclosed financial weakness (negative net worth) and high franchisee termination rate, suggests its support infrastructure may be strained. This could potentially lead to inadequate training, site selection assistance, and ongoing operational support for new franchisees like you.

Potential Mitigations

  • Inquiring with recent franchisees about the quality and timeliness of the support they received during their opening process is crucial.
  • A business advisor can help you assess whether the franchisor's support staff and systems, as described in Item 11, appear adequate for the system's current size and growth rate.
  • Your attorney should review the franchisor's contractual support obligations to understand what is legally required versus discretionary.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

The franchisor, Live Hydration Spa Franchise LLC, is a very young company, formed in late 2020 and beginning to franchise in 2021. While its founders have relevant industry experience, the franchise entity itself has a limited operating history. This newness, combined with its disclosed negative net worth and high franchisee turnover, presents a significant risk. An unproven franchise system may lack refined operational processes and robust support, increasing the potential for challenges.

Potential Mitigations

  • Extensive due diligence is required; speaking with a wide range of franchisees is essential to gauge the system's viability.
  • Your business advisor should help you evaluate the business model's track record and the management team's experience in scaling a franchise system.
  • It is prudent to have an accountant help you develop conservative financial projections that account for the higher risks of a new system.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The IV hydration and wellness spa industry is relatively new and has seen rapid growth, which can be an indicator of a potential fad. While demand for wellness services exists, the long-term sustainability of this specific business model at a broad scale is not yet proven. You could be locked into a 10-year agreement for a business whose popularity may decline, which could impact your ability to achieve a return on your investment over the full term.

Potential Mitigations

  • A business advisor can help you research the long-term market trends for IV hydration services beyond the current hype.
  • Evaluating the franchisor's plans for innovation and adaptation to changing consumer wellness trends is a key discussion to have with them.
  • Your financial advisor should assist you in modeling a worst-case scenario where demand decreases to assess the potential financial impact.
Citations: Item 1, Item 11

Inexperienced Management

Medium Risk

Explanation

While the founders have direct industry experience as registered nurses, the franchisor entity is young, and several key management personnel have joined recently. For example, the Vice President of Operations started in December 2024. This suggests the management team is still being assembled to support the system's rapid growth. A team that is new to working together or new to franchising could present challenges in providing consistent and effective support to franchisees.

Potential Mitigations

  • A thorough review of the backgrounds of all key management personnel listed in Item 2 is recommended.
  • In your discussions with current franchisees, specifically ask about their direct experiences with the management team's responsiveness and expertise.
  • A business advisor can help you assess whether the collective experience of the team is adequate for managing a rapidly growing, medically-related franchise.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. There is no disclosure in Item 1 indicating that the franchisor is owned by a private equity firm. This type of ownership can sometimes lead to a focus on short-term profits over the long-term health of the franchise system. Since it is not present here, this specific risk is not a factor.

Potential Mitigations

  • Your attorney can verify the ownership structure disclosed in Item 1 through public records to confirm the absence of PE ownership.
  • It is still wise to ask your accountant to analyze the franchisor's financial strategy for signs of aggressive short-term profit-taking, regardless of ownership structure.
  • Engaging a business advisor to research the backgrounds of the owners can provide additional insight into their long-term vision for the brand.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor discloses its parent companies, C&F Holding Company, LLC and Live Holdings LLC, in Item 1. The franchisor's own audited financial statements are provided in Item 21 and Exhibit D. There is no indication that the parent's financials are required but withheld.

Potential Mitigations

  • Your accountant should review the provided franchisor financials and confirm if they appear sufficient for assessing risk without needing parent financials.
  • It is good practice for your attorney to confirm if any guarantees from the parent company exist that might necessitate their financials.
  • A business advisor can help you research the parent companies to understand their role and relationship with the franchisor.
Citations: Item 1, Item 21, Exhibit D

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. In Item 1, the franchisor states, "We do not have any predecessors." This means the current entity is the original franchisor for this system, so there is no hidden history of predecessor failure or litigation to be concerned about. The risks associated with this franchise stem from its own limited history, not from a prior entity.

Potential Mitigations

  • Your attorney can confirm the franchisor's statement about having no predecessors through corporate record searches.
  • A business advisor can help focus due diligence on the current entity's short track record, since no predecessor history exists.
  • When speaking with franchisees, you can confirm they have always dealt with the current franchisor entity.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states, "No litigation is required to be disclosed in this Item." This is a positive sign, as it suggests the franchisor has not been involved in significant legal disputes with franchisees or regulators concerning fraud, breach of contract, or franchise law violations. However, the system is very young, so the lack of litigation may be due to its short history.

Potential Mitigations

  • Your attorney can conduct an independent search of court records to verify the accuracy of the Item 3 disclosure.
  • During discussions with current and former franchisees, it is still prudent to inquire about any disputes they may have had, even if they did not result in litigation.
  • A business advisor can help you monitor this area, as a clean litigation history can change quickly with a young, rapidly growing system.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
8
1
6

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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3

Financial & Fee Risks

Total: 10
5
4
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.

4

Legal & Contract Risks

Total: 16
9
4
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.

5

Territory & Competition Risks

Total: 5
2
3
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
6
1
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
4
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.

8

Operational Control Risks

Total: 12
6
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.

9

Term & Exit Risks

Total: 18
10
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.

10

Miscellaneous Risks

Total: 2
2
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.