Pür Life Medical Logo

Pür Life Medical

Initial Investment Range

$649,949 to $1,182,449

Franchise Fee

$54,900 to $122,700

PLM Franchising, Inc. is offering franchises to own and operate a franchise (“Franchised Business”) in which you will be responsible for operating and/or managing wellness and healthcare centers.

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Pür Life Medical July 15, 2024 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
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

PLM Franchising, Inc. (PLM Franchising) is a new corporation formed in December 2023. Its parent's financial statement in Exhibit E is an opening balance sheet showing only $100,000 in cash and no operating history. This limited capitalization and lack of a financial track record present a significant risk, as it may indicate an inability to provide robust, long-term support, fund system growth, or weather economic challenges, potentially jeopardizing your investment.

Potential Mitigations

  • A franchise accountant should analyze the franchisor's capitalization and develop financial models that account for the risks of a newly-funded franchisor.
  • It is advisable to discuss with a business advisor the franchisor’s specific plans for deploying its capital to support new franchisees.
  • Your franchise attorney should review any state-mandated financial assurances, like bonds or escrow, which may be required of new franchisors.
Citations: Item 1, Item 21, FDD Exhibit E

High Franchisee Turnover

High Risk

Explanation

Item 20 data for the predecessor franchisor is a significant concern. In 2023, the system began with three franchised outlets, and two of them ceased operations during that year. This represents an extremely high turnover rate of 67% for the starting cohort. Such a high rate of units ceasing operations is a critical red flag that may signal systemic problems with the business model's profitability, the effectiveness of franchisor support, or franchisee satisfaction.

Potential Mitigations

  • Your business advisor should help you contact a significant number of the former franchisees listed in Item 20 to understand their reasons for leaving.
  • A thorough analysis of the Item 20 tables with your accountant is critical to calculate and understand the turnover rates over the past three years.
  • It is important to directly question the franchisor about the circumstances that led to these units ceasing operations.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD Package. While the system is growing from a small base, the primary risk appears to be related to high turnover and newness rather than growth outpacing support resources. Franchisees should generally be cautious of systems expanding too quickly, as it can strain the franchisor's ability to provide adequate training and operational support, potentially harming both new and existing locations.

Potential Mitigations

  • A business advisor can help you evaluate if the franchisor's support staff and infrastructure, as described in Item 2 and Item 11, are sufficient for its projected growth.
  • Asking current franchisees about the quality and timeliness of support they receive is a valuable due diligence step to perform with your business advisor.
  • Your accountant can assess the franchisor's financial statements to determine if they are reinvesting sufficiently in support infrastructure.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

The franchisor is a new entity, formed in late 2023, with no operating history and minimal capitalization. The business model, which has been operated by two different predecessors since 2019, has a history of extremely high franchisee turnover as shown in Item 20. Investing in a new franchisor with an unproven track record and a historically unstable system presents a significantly elevated risk of business failure and lack of effective support.

Potential Mitigations

  • Engaging a business advisor to conduct deep due diligence on the management team's experience in both this specific industry and in franchising is crucial.
  • Your accountant must carefully scrutinize the startup financials and assess the system's viability, especially given the lack of an Item 19 FPR.
  • Your attorney should advise you on the heightened risks and whether greater contractual protections can be negotiated.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The business operates in the dynamic wellness and healthcare services industry. While this sector is growing, some services offered, such as IV therapy and specific aesthetic treatments, can be subject to rapidly changing trends and consumer preferences. This creates a potential risk that the business model could become outdated, requiring you to make frequent and costly investments in new equipment and training to stay relevant and competitive.

Potential Mitigations

  • A business advisor can help you research the long-term market demand for the core services offered versus those that might be temporary fads.
  • It is important to question the franchisor about their research and development process for new services and their strategy for keeping the brand current.
  • Your accountant should help you budget for ongoing capital expenditures for new technology and services not just initial setup.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

The franchisor entity, PLM Franchising, is new, and its key officers have only been in their roles since late 2023 or early 2024. Furthermore, the training instructors listed in Item 11 have very limited tenure with the company, having joined in early 2024. While some personnel have experience with affiliated companies, the lack of a long-established and stable management and support team at the franchisor level itself is a risk that could impact the quality of guidance and support you receive.

Potential Mitigations

  • Your business advisor can help you conduct thorough due diligence on the specific franchising and industry experience of each key management member.
  • Asking current franchisees detailed questions about the quality, consistency, and expertise of the support and training they have received is critical.
  • Understanding the backgrounds of the training staff with your business advisor will help gauge the quality of instruction you can expect.
Citations: Item 2, Item 11

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. The disclosures in Item 1 do not indicate that the franchisor is owned or controlled by a private equity firm. When investing in a PE-owned franchise, it is important to assess whether decisions are made for the long-term health of the brand and its franchisees or for a shorter-term return for investors, which could lead to increased fees or reduced support.

Potential Mitigations

  • Your attorney should always verify the ownership structure detailed in Item 1 of the FDD.
  • Researching the track record of any parent or investment firm with other franchise systems can provide valuable insight, a task a business advisor can assist with.
  • Talking to franchisees who have been through an acquisition by an investment firm can reveal changes in culture and support.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. The franchisor appropriately discloses its parent companies in Item 1 and provides the parent company's audited opening balance sheet in Exhibit E. A failure to disclose a parent company or its financials, when required, can obscure the true financial backing and stability of the franchisor, which is a significant risk for a prospective franchisee.

Potential Mitigations

  • Your attorney can help verify the franchisor's corporate structure and identify all parent and affiliate companies.
  • If a parent company guarantees the franchisor's obligations, it is important to have your accountant review its financial statements carefully.
  • Ensure that any financial guarantee from a parent is a formal, legally binding document reviewed by your attorney.
Citations: Item 1, Item 21, FDD Exhibit E

Predecessor History Issues

High Risk

Explanation

The franchise system has a complex and unstable ownership history, having been operated by three different entities since 2019. PLM Franchising acquired the system in early 2024 from a predecessor that held it for only a few months. This frequent changing of hands, combined with the very high franchisee turnover disclosed in Item 20, suggests significant historical problems that may be inherited by the current franchisor, posing a risk to the system's stability and future.

Potential Mitigations

  • A business advisor should help you investigate the history and reputation of all predecessor companies.
  • It is crucial to ask the current franchisor how they have addressed the issues that may have led to past instability and high turnover.
  • Your attorney can help you understand if you are assuming any liabilities or unresolved issues from the predecessor entities.
Citations: Item 1, Item 20

Pattern of Litigation

Medium Risk

Explanation

While the franchisor itself does not disclose litigation in Item 3, the State Specific Addenda in Exhibit I reveal that a key Area Representative for Kansas and Missouri had a prior bankruptcy. Area Representatives are responsible for franchise sales and support. The financial distress of such a key person could be an indicator of instability or affect their ability to support you, presenting a risk even though it's not litigation directly against the franchisor.

Potential Mitigations

  • Your attorney must review not only Item 3 but all addenda for any disclosures of litigation or bankruptcy involving the franchisor, its management, or key agents like Area Representatives.
  • A business advisor can help you research the background of any Area Representative you work with.
  • It is important to ask the franchisor about the oversight and stability of their Area Representative network.
Citations: Item 3, Item 4, FDD Exhibit I
2

Disclosure & Representation Risks

Total: 15
3
1
11

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
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.

4

Legal & Contract Risks

Total: 16
11
1
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
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
3
1
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
10
1
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.

9

Term & Exit Risks

Total: 18
17
0
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.

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.