Prime IV Hydration Unit
Prime IV Hydration Unit franchises offer customized nutrient IV hydration therapy and hormone/peptide treatments in wellness centers, operating under the Prime IV Hydration & Wellness brand. Known for specialized medical treatments, these centers are part of the growing healthcare and wellness franchise sector.
Prime IV Hydration Unit franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new Prime IV Hydration & Wellness® Center ranges from $187,701 to $606,693. For an Add-On Center, the range is from $99,501 to $334,893. These amounts include payments to the franchisor or its affiliates as specified [p.1].
What is the initial franchise fee?
The initial franchise fee is $49,000 when you sign the Agreement for a new Unit Franchise. For converting an existing medical or healthcare practice into a Prime IV Hydration & Wellness® Unit Franchise, the fee is $34,000 [p.14]. However, in some states like Minnesota and Virginia, this fee may be deferred until the franchise opens for business due to regulatory requirements [p.83, p.154, p.161].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of gross revenues [p.83], payable monthly based on the franchise's gross revenues. Additionally, there is a Branding Fund Fee of 1% of gross revenues [p.84], which is payable with the Royalty Fees and used for advertising and promoting the franchise. This isn't specified in the excerpts regarding any other ongoing advertising fees beyond the Branding Fund contribution.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, according to [p.75], if a renewal is desired, the prospective franchisee must provide written notice between two years and one year before the expiration of the initial term. The renewal process involves executing a new Franchise Agreement with appropriate modifications, including payment of a 25% renewal fee based on the current initial franchise fee.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer your franchise without the franchisor's prior written consent [p.43]. Additionally, any person with an operating interest in the franchise or who has access to confidential information must sign specific agreements, such as the Confidentiality Agreement and Brand Protection Agreement, which are also subject to the franchisor's approval [p.43].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.255]. Additionally, the franchisor can terminate the agreement if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame [p.161].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You will receive a protected territory, but it is not exclusive. The franchisee may face competition from other franchisees, company-owned outlets, and competitive brands controlled by the franchisor within their protected territory [p.39, p.74].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training called Prime U [p.35], which gives an overview of the franchise journey. Ongoing support includes requiring staff to pass a training program satisfactory to the franchisor before operation can begin [p.39]. This isn't specified in the excerpts for additional ongoing support details beyond the initial training.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor shares historic financial performance representations reflecting gross sales of unit franchisees that were open at least 12 months in certain years. However, the franchisor does not make any financial performance guarantees or projections and disclaims making any such representations [p.48, p.55, p.70].
What am I restricted to selling, and where must I buy supplies?
You are required to use specific products, materials, supplies, and services as designated by the franchisor, which may include purchasing from approved suppliers that might be limited to or include the franchisor and its affiliates [p.30]. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, potentially at higher prices than if you purchased them independently [p.3] [p.26].