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The Wellness Way

The Wellness Way Franchise LLC
https://www.thewellnessway.com
1-920-569-6882
2525 W Mason Street, Green Bay, WI 54303

How much does The Wellness Way cost?

Initial Investment Range

$75,400 to $245,298

Franchise Fee

$22,700 to $37,498

The Wellness Way is a network of health restoration clinics that think and act differently to solve the health challenges that others cannot.

Enjoy our partial free risk analysis below

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The Wellness Way May 24, 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
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s 2023 audited financial statements reveal a negative member's equity (deficit) of ($22,780), indicating liabilities exceed assets. This is a significant sign of financial weakness. Furthermore, member distributions in 2023 were greater than the net income earned, a practice that could affect long-term stability. State addenda for Illinois and California explicitly require fee deferrals due to the franchisor's financial condition, confirming this risk and potentially impacting its ability to support you.

Potential Mitigations

  • An experienced franchise accountant must review the franchisor's complete financial statements, including all footnotes and cash flow statements, to assess its viability.
  • Discuss the negative equity and high member distributions directly with the franchisor's management to understand their plan for achieving financial stability.
  • Your attorney should clarify the protections offered by any state-mandated financial assurances, like the fee deferrals mentioned in the addenda.
Citations: Item 21, Exhibit E (Financial Statements), Exhibit G (Multi-State Addenda)

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified in the FDD package. As The Wellness Way Franchise LLC (TWW) only began franchising in 2023, the Item 20 tables do not yet show any terminations, non-renewals, or other cessations of franchised outlets. Generally, high franchisee turnover is a critical red flag indicating potential systemic problems, such as lack of profitability or poor franchisor support. You should monitor this data in future FDD updates.

Potential Mitigations

  • When reviewing future FDDs, it is crucial to have your accountant analyze the turnover rates presented in Item 20.
  • If future data shows turnover, a business advisor can help you contact former franchisees to understand their reasons for leaving the system.
  • Your attorney can help interpret the definitions the franchisor uses for categories like 'terminations' versus 'transfers' in Item 20 footnotes.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

TWW began with zero franchised outlets at the start of 2023 and grew to 20 by year-end. Such rapid initial growth for a new franchise system can strain its resources. A franchisor expanding too quickly may struggle to provide adequate training, site selection assistance, and ongoing operational support to all its new franchisees, potentially compromising the quality and consistency of the support you receive.

Potential Mitigations

  • Engaging a business advisor to assess the franchisor's infrastructure for supporting this growth is a prudent step.
  • A discussion with the franchisor about their specific plans for scaling support systems to match unit growth is recommended.
  • It is important to ask the initial group of franchisees about the quality and responsiveness of the support they have received during this growth phase.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

TWW was formed in March 2022 and only began offering franchises in July 2022. As a new and unproven franchise system, it lacks a long-term track record of supporting franchisees or demonstrating sustained profitability across the network. Investing in an emerging franchise carries higher risk regarding the viability of the business model, the effectiveness of its support systems, and overall brand recognition, which you should weigh carefully.

Potential Mitigations

  • An accountant should perform enhanced scrutiny of the franchisor's financial statements and business model to assess its long-term viability.
  • Conducting extensive due diligence by speaking with the first group of franchisees about their experiences is critical.
  • Your attorney may be able to negotiate more favorable terms, such as enhanced support commitments, to compensate for the higher risk of a new system.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This specific risk was not identified. The business model, focused on chiropractic and health restoration clinics, appears to be part of the established and growing wellness industry rather than a temporary trend. However, any business's long-term success depends on its ability to adapt to changing consumer preferences and market conditions. You should still consider the long-term demand for these specific services in your local market.

Potential Mitigations

  • A business advisor can help you conduct independent market research to assess the long-term consumer demand for these specific wellness services.
  • In discussions with the franchisor, inquire about their strategies and investment in research and development to ensure the brand remains relevant.
  • It is wise to evaluate the business model’s resilience to economic shifts and evolving health trends with your financial advisor.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While some members of the management team have extensive clinical experience in the wellness industry, their experience specifically in managing a franchise system is limited, as the company only began franchising in 2022. A lack of deep franchising experience can pose risks, as it may lead to challenges in areas like franchisee support, supply chain management, and marketing at a national scale. The effectiveness of their support infrastructure has not yet been proven over time.

Potential Mitigations

  • Thoroughly vet the management team's background with a business advisor, focusing on any prior franchising experience or the involvement of franchise consultants.
  • Speaking with the earliest franchisees about the quality of support, system maturity, and management's understanding of franchisee needs is crucial.
  • It is advisable to ask the franchisor directly about how they are addressing their limited experience in managing a franchise network.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchisor is a subsidiary of The Wellness Way, LLC, and does not disclose ownership by a private equity firm. Generally, private equity ownership can introduce risks related to prioritizing short-term returns over the long-term health of the franchise system. While not present here, you should remain aware of any future sale of the company.

Potential Mitigations

  • A business advisor can help you research the ownership structure of any franchise you consider.
  • It is prudent to have your attorney analyze the 'Assignment by Franchisor' clause in the Franchise Agreement to understand your rights if the system is sold.
  • You should always ask current franchisees about any recent changes in ownership and the impact on their business.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

The franchisor is a wholly owned subsidiary of The Wellness Way, LLC (the Parent). The franchisor's own financial statements show a negative net worth, making the financial health of the Parent critical. However, the FDD does not include the Parent's financial statements or a guarantee of the franchisor's performance. Without this information, you cannot fully assess the overall financial stability of the enterprise that supports your business, which poses a significant risk.

Potential Mitigations

  • Your attorney should request the financial statements of the parent company, The Wellness Way, LLC, to assess the overall financial health of the enterprise.
  • Having your accountant analyze the financial relationship and any fund transfers between the franchisor and its parent is a critical step.
  • Inquire with your attorney about the possibility of negotiating a performance guarantee from the parent company.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 does not disclose any predecessors, as The Wellness Way Franchise LLC is a new entity that started franchising directly. In general, if a franchisor has predecessors, it is important to review their history for issues like litigation, bankruptcy, or high franchisee turnover, as these could indicate unresolved systemic problems that might affect your business.

Potential Mitigations

  • A franchise attorney should always be engaged to carefully review Item 1 of any FDD for information about predecessors.
  • If predecessors exist, it's wise to have a business advisor help you research their history and reputation.
  • Asking long-term franchisees about their experience under any previous ownership can provide valuable context.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 discloses no material litigation. In general, a pattern of lawsuits filed by franchisees against a franchisor alleging fraud, misrepresentation, or breach of contract is a major red flag. Similarly, a high volume of litigation initiated by the franchisor against its franchisees could indicate an overly aggressive or strained relationship within the system.

Potential Mitigations

  • A careful review of Item 3 with your franchise attorney is always a critical step in due diligence.
  • Your attorney can assist in conducting independent searches for litigation that may not have been required to be disclosed.
  • If litigation is disclosed, discussing the nature of the disputes with current or former franchisees can provide important context.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
2
8

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
6
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
6
5
5

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
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.

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
2
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.

8

Operational Control Risks

Total: 12
4
7
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
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.