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Restore Hyper Wellness Logo

Restore Hyper Wellness

Restore Franchising, LLC
https://restore.com/
1-512-537-4087
3601 South Congress Ave., Suite C-200, Austin, TX 78704

How much does Restore Hyper Wellness cost?

Initial Investment Range

$777,174 to $1,778,925

Franchise Fee

$156,100 to $218,800

The franchise offered is for a Restore Hyper Wellness™ retail outlet studio that provides, or facilitates access to, alternative wellness services.

Enjoy our partial free risk analysis below

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Restore Hyper Wellness April 1, 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
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s audited financials show some potential signs of concern. While net income was positive in 2024, the company had negative cash flow from operations for the past two years, which may indicate a reliance on financing or other activities to fund operations. A prospective franchisee could find that this financial position may impact the franchisor’s ability to provide long-term support, invest in the brand, and grow the system without depending on new franchise sales.

Potential Mitigations

  • Your accountant should conduct a detailed analysis of the franchisor's financial statements, including the statement of cash flows and all footnotes.
  • It is important to discuss with a financial advisor the potential implications of the franchisor's negative operating cash flow on its long-term stability.
  • In your discussions with current franchisees, you should ask about their perception of the franchisor's financial capacity to support the system, which your business advisor can help frame.
Citations: Item 21, FDD Exhibit G

High Franchisee Turnover

High Risk

Explanation

Item 20 data indicates a high rate of franchisee unit closures. In 2024, 29 franchised outlets “Ceased Operations for Other Reasons,” and 19 did so in 2023. This represents a significant percentage of the total operating units and suggests potential systemic issues, such as unprofitability, franchisee dissatisfaction, or other challenges within the business model. This high turnover rate presents a substantial risk to your potential for success.

Potential Mitigations

  • With your business advisor, you should contact a significant number of former franchisees listed in Exhibit E to understand the specific reasons for their departure.
  • A careful review of the Item 20 tables with your accountant is necessary to calculate the effective annual turnover rate.
  • Your franchise attorney should help you ask the franchisor direct questions about the high number of ceased operations.
Citations: Item 20, FDD Exhibit E

Rapid System Growth

Medium Risk

Explanation

The franchised outlet count in Item 20 shows very rapid growth in 2022 and 2023, followed by a net decrease in 2024. While past growth built brand presence, the recent contraction, combined with negative operating cash flow, suggests the franchisor's support infrastructure may be strained. This could potentially affect the quality and availability of training, marketing, and operational support for you as a new franchisee.

Potential Mitigations

  • Discuss with a business advisor whether the franchisor’s support systems seem adequate for the current number of franchisees.
  • When speaking with franchisees, ask about their experience with the responsiveness and quality of franchisor support.
  • Your accountant should review the franchisor's financials to assess if resources are allocated to support functions or primarily to franchise sales.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

The franchisor, Restore Franchising, LLC (Restore), began selling franchises in late 2016 and has experienced rapid growth and subsequent contraction. The high franchisee turnover disclosed in Item 20 and the complex, highly regulated business model present significant risks. While the system is established, its recent negative growth trend suggests the business model may still face challenges in achieving consistent, long-term franchisee success across different markets.

Potential Mitigations

  • A business advisor can help you assess the viability of this specific business model in your target market.
  • It is critical to speak with a broad range of franchisees, both new and tenured, to understand the system's operational realities.
  • Your accountant should help you develop conservative financial projections, given the system's recent performance trends.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business model, focused on health and wellness services like cryotherapy and IV drips, taps into a current and growing consumer trend. However, long-term market sustainability can be a concern for any trend-based business. You should evaluate if demand is durable or could fade over time, potentially impacting your investment long after the initial trend has peaked.

Potential Mitigations

  • A business advisor can help you conduct independent market research to assess the long-term consumer demand for these specific wellness services.
  • It is wise to ask the franchisor about their strategy for innovation and adaptation to evolving consumer wellness trends.
  • Consider the business's resilience to economic shifts and changing health fads with your financial advisor.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

Item 2 shows that several key executives have joined Restore recently, within the last one to two years. While some have prior franchise experience, a newer management team could present risks related to a lack of long-term institutional knowledge of this specific system. This could potentially affect strategic continuity, franchisee relationships, and the execution of support systems, which are critical for your success.

Potential Mitigations

  • A thorough review of the backgrounds of all key management personnel with your business advisor is recommended.
  • When interviewing current franchisees, you should ask about their direct experiences with the new management team's effectiveness and support.
  • It may be beneficial to research the past performance of other franchise systems where the executives previously worked.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

The franchisor's parent company, ACV, appears to be affiliated with private equity firms, as members from General Atlantic and Level 5 Capital Partners are on the Board of Directors. This ownership structure may create a focus on maximizing short-term returns, which could potentially lead to decisions like increasing fees, reducing franchisee support, or a quick sale of the franchise system, which may not align with your long-term interests as a franchisee.

Potential Mitigations

  • A business advisor can help you research the track record of the involved private equity firms with other franchise brands.
  • Engaging with current franchisees to discuss any changes in system direction or support levels since the involvement of these firms is crucial.
  • Your attorney should review any clauses in the Franchise Agreement that relate to the sale or assignment of the franchise system.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 discloses the parent company, Austin Cryo Ventures, LLC, and the franchisor's financials are provided in Exhibit G. However, the financials of the parent company are not provided. Given the complex inter-company relationships and significant related-party transactions detailed in the financial notes, the absence of parent financials may obscure the complete financial health and stability of the consolidated enterprise supporting your franchise.

Potential Mitigations

  • Your accountant should closely examine the related-party transactions in the franchisor's financial statement footnotes for potential risks.
  • It is advisable to ask your attorney whether, under these specific circumstances, the parent company's financials should have been disclosed.
  • Discuss with a financial advisor the risks of investing in a system with significant financial dependence on a parent whose own financial health is not disclosed.
Citations: Items 1, 21, FDD Exhibit G

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor, Restore Franchising, LLC, does not list any predecessors in Item 1. Therefore, there is no history from a prior entity to analyze for issues like litigation, bankruptcy, or franchisee turnover. A prospective franchisee must rely solely on the track record of the current franchisor entity.

Potential Mitigations

  • Verifying the formation date and history of the franchisor entity with your attorney is a good practice.
  • A business advisor can help you focus your due diligence on the current management team and the system's recent performance.
  • A thorough review of the existing litigation and turnover data for the current entity with your accountant and attorney is essential.
Citations: Items 1, 3, 4

Pattern of Litigation

High Risk

Explanation

Item 3 discloses two pending legal actions initiated by franchisees against Restore. One case involves allegations of breach of contract, fraudulent misrepresentation, and negligent non-disclosure. The other involves claims of violating an exclusive territory. A pattern of franchisees suing the franchisor, especially with allegations of fraud or broken promises, is a significant red flag that may suggest systemic issues in franchisee relations, sales practices, or operational execution.

Potential Mitigations

  • Your franchise attorney must carefully review the details and allegations of all lawsuits disclosed in Item 3.
  • It is highly advisable to discuss these litigation patterns with both current and former franchisees to understand the context.
  • Consider that such litigation can be a serious drain on the franchisor's financial and management resources, which your accountant can help assess.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
8
0
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

Unlock Full Risk Analysis

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3

Financial & Fee Risks

Total: 10
4
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.

4

Legal & Contract Risks

Total: 16
6
4
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

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
0
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.

6

Regulatory & Compliance Risks

Total: 10
6
2
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
2
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.

8

Operational Control Risks

Total: 12
4
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.

9

Term & Exit Risks

Total: 18
9
6
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.

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.