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Prime IV Hydration & Wellness
How much does Prime IV Hydration & Wellness cost?
Initial Investment Range
$99,501 to $632,193
Franchise Fee
$34,000 to $49,000
The business specializes in providing customized nutrient IV hydration therapy, along with hormone and peptide therapy, to the general public.
Enjoy our partial free risk analysis below
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Prime IV Hydration & Wellness April 29, 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
The financial statements for Prime I.V. Hydration & Wellness, Inc. (Prime IV) in Exhibit D reveal significant weakness. For the year ending December 31, 2024, the company had a negative net worth of approximately ($4.8 million) and a net loss of over $752,000. These figures follow a $2.5 million loss in 2023. This financial condition, also flagged as a special risk by the franchisor, raises questions about its long-term ability to support franchisees.
Potential Mitigations
- An experienced franchise accountant should perform a deep analysis of the franchisor's financials, including all footnotes and cash flow statements.
- Discuss the specific implications of the franchisor's negative equity and ongoing losses with your financial advisor to model worst-case scenarios.
- Your attorney should investigate any financial assurance requirements, like bonds or fee deferrals, that state regulators may have imposed due to this condition.
High Franchisee Turnover
Low Risk
Explanation
The FDD does not indicate an unusually high rate of franchisee turnover. Item 20 data for 2024 shows 4 terminations and 2 franchisor reacquisitions out of 99 starting units, a churn rate of about 6%. While not alarming, this should be monitored in the context of the system's rapid growth. A high turnover rate can signal systemic issues, such as unprofitability or poor franchisor support, which increases the risk of failure for new franchisees.
Potential Mitigations
- It is crucial to contact a diverse list of current and former franchisees from the list in Item 20 to inquire about their experiences.
- Engaging a business advisor to help you analyze turnover trends over several years can provide deeper insight into system health.
- Your accountant can help model the potential financial impact should you face operational challenges leading to turnover.
Rapid System Growth
High Risk
Explanation
The franchisor is experiencing extremely rapid growth, expanding from 47 to 152 operating franchised outlets between the start of 2023 and the end of 2024. Furthermore, Item 20 Table 5 indicates 133 franchise agreements have been signed for outlets that are not yet open. This rapid expansion, coupled with the company's negative net worth, creates a significant risk that support systems for training, operations, and site opening may be strained, potentially leading to inadequate franchisee assistance.
Potential Mitigations
- A thorough discussion with your business advisor is needed to assess whether the franchisor's support infrastructure can sustain this level of growth.
- Inquiring with recently opened franchisees about the quality and timeliness of the support they received during the opening process is advisable.
- Your accountant should review the franchisor's financials to determine if they have the capital to adequately support this rapid expansion.
New/Unproven Franchise System
High Risk
Explanation
Prime IV began offering franchises in January 2020 and explicitly discloses "Short Operating History" as a special risk. A newer system presents higher risks, as its business model, support structures, and brand recognition are not as established as those of a more mature franchise. The long-term viability and profitability of the model have not been proven over an extended period, which could affect your investment's success.
Potential Mitigations
- Conducting extensive due diligence on the backgrounds of the management team is critical; your business advisor can help with this.
- Speaking with the earliest franchisees listed in Item 20 can provide valuable insight into the system's evolution and the franchisor's performance.
- Your attorney may be able to negotiate more favorable contract terms to compensate for the higher risk associated with a newer system.
Possible Fad Business
Medium Risk
Explanation
The IV hydration industry is a relatively new and trendy segment of the wellness market. While currently popular, there is a risk that the business could be a fad with limited long-term, mainstream consumer demand. If market interest wanes, your franchise could face declining sales and potential failure, even though you would still be bound by the 10-year franchise agreement. The long-term sustainability of this specific business model is a key consideration.
Potential Mitigations
- It is wise to conduct independent market research with a business advisor to assess the long-term viability and consumer demand for IV therapy services.
- Evaluating the franchisor’s plans for innovation, service diversification, and adaptation to market changes is a prudent step.
- Discuss the potential risks of a trend-based business with your financial advisor to understand its potential volatility.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. Item 2 indicates that the franchisor's key personnel have prior experience in the franchising industry with other brands, such as WellBiz Brands and Any Lab Test Now. Inexperienced management can be a significant risk, as it may lead to underdeveloped support systems, poor strategic decisions, and an inability to effectively guide franchisees, potentially harming the entire brand.
Potential Mitigations
- It is still advisable to interview current franchisees about their direct experiences with the management team's competence and support.
- Engaging a business advisor to independently research the professional backgrounds and track records of the key executives is a prudent step.
- You should always ensure the franchisor has specific experience not just in the industry, but in managing a franchise system.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not indicate that the franchisor is owned by a private equity firm. When a franchise is owned by a private equity firm, there can be a risk that decisions are focused on short-term investor returns rather than the long-term health of franchisees. This could potentially lead to increased fees, reduced support, or a quick sale of the company.
Potential Mitigations
- Even without private equity ownership, it is important to have your attorney review the franchisor's rights to sell or assign the franchise system.
- A discussion with your business advisor about the franchisor's long-term vision can provide insight into their strategic priorities.
- Always ask current franchisees about any recent changes in ownership or management philosophy.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not disclose the existence of a parent company. When a franchisor is a subsidiary of a parent company, it's important to understand the parent's financial health and level of commitment, as the parent's decisions or financial instability could negatively impact the franchise system. In some cases, the parent's financial statements are a necessary component for a complete risk assessment.
Potential Mitigations
- It is good practice for your attorney to verify the franchisor's corporate structure and confirm the absence of any undisclosed controlling entities.
- An accountant should always review the provided financial statements to ensure they represent the complete and correct franchising entity.
- You can ask the franchisor directly to confirm their ownership structure and whether any other entities provide guarantees or essential support.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 notes a prior corporate name but indicates no franchises were offered under it and discloses no other predecessors. A predecessor is a company from which the franchisor acquired the business. A history of predecessors can sometimes obscure past issues like litigation, bankruptcies, or high franchisee failure rates, making it difficult to assess the system's true historical performance and stability.
Potential Mitigations
- Your attorney should always confirm the business's lineage and history as disclosed in Item 1.
- When predecessors exist, a business advisor can help you research their historical performance and reputation.
- Speaking with long-term franchisees who may have operated under a predecessor provides invaluable insight.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses concluded and pending administrative actions by state regulators (Washington and Virginia) for violations of franchise law, specifically related to improper collection of fees. While self-reported, these actions indicate weaknesses in the franchisor's compliance systems. Additionally, Item 4 discloses that the current President/COO previously served as CEO for two other entities that filed for bankruptcy. While not a direct action against Prime IV, it represents a relevant historical risk factor for key management.
Potential Mitigations
- Your attorney must review the details of all disclosed litigation and regulatory actions to assess their potential impact on the franchise system.
- Discussing these disclosed issues with your business advisor can help you gauge the franchisor's operational and compliance maturity.
- It is important to ask the franchisor what steps they have taken to remedy the issues that led to these regulatory actions.
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
Purchase the complete risk review to see all 102 risks across all 10 categories.
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.
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