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Medi-Weightloss

Medi-Weightloss Franchising USA, LLC
https://www.mediweightloss.com
1-813-228-6334
509 S. Hyde Park Avenue, Tampa, Florida 33606

How much does Medi-Weightloss cost?

Initial Investment Range

$251,000 to $4,750,000

Franchise Fee

$139,000 to $1,393,000

Medi-Weightloss businesses sell proprietary weight loss, wellness, nutritional and weight loss products and services.

Enjoy our partial free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Medi-Weightloss April 23, 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
2
4
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor explicitly flags its own financial condition as a special risk. The 2024 audited financial statements show total liabilities ($10.26M) exceeding total assets ($7.09M), resulting in a negative net worth, or Member's Deficit, of over $3.1M. This is a significant indicator of financial weakness that could impact the franchisor's ability to support you. Several states have required the franchisor to defer initial fees due to this condition, confirming the risk's materiality.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the franchisor's audited financial statements, including all notes, to assess its long-term viability.
  • Discuss the implications of the negative net worth and state-mandated fee deferrals with your franchise attorney.
  • Ask your financial advisor to help you create contingency plans in case franchisor support diminishes due to financial strain.
Citations: Item 21, Exhibit B, Exhibit G

High Franchisee Turnover

Medium Risk

Explanation

In 2024, there were 6 total exits (2 terminations, 4 non-renewals) from a starting base of 88 franchised outlets, for a turnover rate of approximately 6.8%. The number of outlets leaving the system increased from 4 in 2022 to 6 in 2024, with non-renewals being a key driver in the most recent year. While not alarmingly high, this trend suggests that a notable number of franchisees are choosing not to continue their relationship upon contract expiration.

Potential Mitigations

  • Engaging a business advisor to analyze the turnover rates in Item 20 relative to system growth is a prudent step.
  • It is crucial to contact former franchisees, especially those who did not renew, to understand their reasons for leaving the system.
  • Your accountant should help you model the potential impact of similar franchisee dissatisfaction on the brand's long-term health.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

From the start of 2022 to the end of 2023, the number of franchised units grew from 72 to 88, a 22% increase. The system then saw a net decline of one franchised unit in 2024. While growth has stalled recently, the prior expansion rate combined with the franchisor's negative net worth disclosed in Item 21 may raise questions about whether its support infrastructure is sufficiently capitalized to adequately serve all franchisees, especially as the system matures.

Potential Mitigations

  • Your business advisor should help you question the franchisor about their specific plans for scaling support infrastructure.
  • Contacting franchisees who joined during the 2023 growth period to gauge their satisfaction with training and support is advisable.
  • An accountant can help you assess if the franchisor's financial statements show sufficient reinvestment in support systems to match its size.
Citations: Item 20, Item 21, Exhibit B

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor, Medi-Weightloss Franchising USA, LLC (Medi-Weightloss), has been in business since 2008 and has an established system. However, for any franchise, especially one in a rapidly evolving market like wellness, it is important to assess whether the business model has a long history of success and is not just based on a temporary trend. A new system carries higher risks due to unproven operations and support.

Potential Mitigations

  • When evaluating any franchise, it's wise to have a business advisor help you research the company's history and the track record of its leadership.
  • Speaking with the longest-operating franchisees can provide insight into the system's evolution and stability, a task your attorney can help prepare for.
  • An accountant should review the financial statements of any franchisor to gauge its maturity and operational history.
Citations: Not applicable

Possible Fad Business

Medium Risk

Explanation

The medically-supervised weight loss market is competitive and subject to changing trends, such as new medications or wellness fads. While the business has operated since 2008, its long-term success depends on its ability to adapt. The risk for you is that consumer demand could shift away from the specific model offered, potentially impacting profitability even if you are locked into a long-term agreement. Careful consideration of the model's staying power is necessary.

Potential Mitigations

  • A business advisor can help you research the long-term outlook for the medically-supervised weight loss industry and this specific business model.
  • You should discuss the franchisor's history of innovation and plans for future adaptation to market trends.
  • Evaluating the system's resilience to economic shifts and changing consumer preferences with a financial advisor is a recommended step.
Citations: Item 1, Item 11

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. Item 2 shows that the key personnel have extensive experience in the healthcare, franchising, and retail sectors, with many having been with the company or its affiliates for several years. However, a prospective franchisee should always assess whether management's experience is directly relevant to supporting franchisees. Inexperienced leadership can lead to weak support, poor strategic decisions, and higher franchisee failure rates, affecting your investment.

Potential Mitigations

  • It is always a good practice to have your business advisor help you research the backgrounds of the franchisor's key executives.
  • Asking current franchisees about their direct experiences with the management team's competence and support is a crucial due diligence step.
  • Your attorney can help you understand if there are any contractual protections should key personnel leave the company.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

Medi-Weightloss is owned by a parent company that is an affiliate of Audax Management Company, LLC, a private equity firm, since October 2022. Private equity ownership can create a focus on short-term profitability to ensure a return for investors, which may not always align with the long-term health of franchisees. This could potentially lead to increased fees, reduced support, or a sale of the franchise system, creating uncertainty for your business.

Potential Mitigations

  • A business advisor can assist you in researching the private equity firm's reputation and its track record with other franchise systems.
  • It's important to ask current franchisees about any changes in operations, fees, or support since the 2022 acquisition.
  • Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the system is sold again.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

The franchisor's parent companies, Medi-Weightloss Buyer, Inc. and its parent entities, are disclosed in Item 1. However, the audited financial statements provided in Item 21 are for the franchisor entity only, not the parent company. While the franchisor entity has negative net worth, the financial strength of the ultimate parent is not disclosed, creating an incomplete picture of the overall financial backing for the system. The parent company does not guarantee the franchisor's performance.

Potential Mitigations

  • Your accountant must evaluate the stand-alone financial statements of the franchisor entity, noting the lack of a parent company guarantee.
  • It's wise to discuss with your attorney the risks associated with a franchisor that has a negative net worth and no financial backing from a parent.
  • A financial advisor can help assess the risk of a system where the franchisor entity itself appears to be financially weak.
Citations: Item 1, Item 21, Exhibit B

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package, as Medi-Weightloss Franchising USA, LLC does not appear to have a predecessor entity from which it acquired the business. It is generally important for prospective franchisees to investigate the history of any predecessor franchisors. A negative history involving litigation, bankruptcy, or high franchisee failure rates under a previous owner could indicate underlying problems with the system that may persist under new ownership.

Potential Mitigations

  • Your attorney should always verify the information in Item 1 regarding any predecessor entities.
  • A business advisor can help you conduct independent research into the history of a franchise system if a predecessor is identified.
  • If a system was acquired from a predecessor, speaking with long-term franchisees about their experience is crucial.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor states in Item 3 that there is no litigation required to be disclosed. This is a positive sign, as a pattern of lawsuits, particularly those initiated by franchisees alleging fraud or misrepresentation, can be a major red flag. Similarly, a high number of lawsuits initiated by the franchisor against its franchisees might indicate an overly aggressive or litigious culture.

Potential Mitigations

  • Your attorney can conduct independent searches for litigation involving the franchisor as part of a thorough due diligence process.
  • A discussion with current and former franchisees can sometimes reveal disputes that did not escalate to formal litigation.
  • A business advisor can help you evaluate the significance of any litigation history you might uncover for any franchise opportunity.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
5
7

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
3
5
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
7
5
4

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
5
3
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.

7

Franchisor Support Risks

Total: 4
1
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.

8

Operational Control Risks

Total: 12
5
5
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
9
9
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.

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.