Companies

Snap Fitness presents a high-risk investment opportunity characterized by significant contraction and steep capital requirements. While the brand offers established scale with 520 outlets and transparent financial performance (AUV: $238,988), the closure of 39 locations last year compared to just 2 openings indicates a struggling network. The high total investment of up to $1.1 million combined with active litigation history suggests potential instability, making the current negative growth trajectory a critical warning for prospective franchisees.

FYZICAL commands a high initial capital requirement, with a franchise fee of $300,000 and total investment costs reaching up to $1.07 million, which suggests a premium, facility-heavy model. The brand demonstrates operational stability and growth, evidenced by 6 new openings and zero closures last year despite a moderate total outlet count of 58. However, prospective franchisees should proceed with caution as the presence of litigation and the lack of an Item 19 financial performance representation limit transparency into potential returns.

MOD Pizza operates at a significant scale with 482 outlets, yet the system is currently contracting rapidly, evidenced by the closure of 73 locations last year compared to just 3 openings. While the franchise benefits from a clean legal history with no bankruptcy or litigation, the lack of an Item 19 financial performance representation adds opacity to the unit-level economics. With a high initial investment requirement approaching $1.2 million, the combination of negative same-store growth and unavailable earnings data presents a substantial risk for potential new franchisees.

Pest Authority offers a low barrier to entry with a total investment range under $130k and a reasonable 6% royalty rate, though the lack of Item 19 financial performance disclosures obscures potential unit-level economics. While the brand has established a footprint of 141 outlets, the presence of litigation and the unavailability of data regarding recent outlet openings and closures present significant transparency concerns regarding the system's current stability and growth trajectory.

SYNERGY HomeCare offers a massive scale with 550 outlets and strong unit economics, evidenced by an AUV of over $2 million, while maintaining a relatively low initial investment threshold compared to industry averages. The system is currently in an expansion phase, having opened 76 units last year, though the closure of 25 locations during the same period suggests some volatility in unit performance. ✓ Positives include the availability of an Item 19 disclosure and a clean legal history with no bankruptcy or litigation, while ⚠ risks involve the 5% royalty fee and the need to investigate the reasons behind the recent unit churn.

Baymont Inn & Suites offers an established hospitality brand with a massive footprint of 521 outlets and a moderate 5% royalty rate, though the investment range is exceptionally wide, spanning from under $200k to nearly $10M. The system demonstrated steady growth last year by opening 35 new locations, but prospective franchisees should scrutinize the Item 19 financials to account for the 20 closures and the presence of litigation. While the lack of bankruptcy is a positive sign, the high variability in startup costs and ongoing legal risks necessitate careful due diligence.

Visiting Angels commands the non-medical home care sector with 539 outlets, offering a moderate investment range of $125k-$171k and the security of an Item 19 financial performance disclosure. ✓ The brand benefits from a low 3.5% royalty rate and zero bankruptcies, signaling a stable, established system. ⚠ However, growth is nearly stagnant with only a single net unit increase last year, and the presence of litigation indicates the operational liabilities inherent in the healthcare industry.

This lawn care franchise offers a moderate entry cost with a total investment under $110,000, though the $30,000 upfront fee is notable for a service-based brand. The absence of an Item 19 financial performance representation is a significant red flag, preventing due diligence on potential earnings. While the 6.5% royalty rate is standard, the lack of transparency regarding outlet growth and unit stability makes it difficult to assess the system's current health.

Style Encore offers a high-revenue resale model with an AUV of $1.4M and a moderate initial investment, though the lack of new unit openings last year signals stagnant growth. ✓ The brand provides strong financial transparency via Item 19 disclosures and maintains a clean legal history with no bankruptcy or litigation. ⚠ However, the closure of three outlets combined with zero new openings suggests a contracting footprint and potential headwinds for franchisees.

MOLLY MAID offers a low-cost entry into the home services sector with a modest $14,900 fee and 3% royalty, backed by the scale of 448 outlets and the availability of financial performance disclosures. However, the brand is displaying a concerning contraction, evidenced by the closure of 25 locations last year compared to just 9 openings. This negative net growth suggests high market saturation or operational challenges, making the shrinking unit count a significant risk factor for new investors.

A&W RESTAURANTS INC offers an established brand with strong unit economics, evidenced by an AUV of $1.3M and a relatively low initial franchise fee of $15,000. ✓ The availability of an Item 19 and the absence of litigation or bankruptcy history provide a layer of transparency and stability for prospective owners. ⚠ However, the system is currently contracting, having closed 37 locations last year compared to just 9 openings, which signals potential headwinds in expansion or franchisee support. ⚠ Additionally, the wide variance in total investment costs—ranging from roughly $300k to $1.6M—indicates a complex development model that requires significant capital depending on the specific format.