Restore Hyper Wellness: Profits Worth the $1M Cost (2023)

Restore Hyper Wellness is a fairly recent yet very successful franchise: even though it started franchising only in 2016, it has more than 167 locations in the US today. Yet at an initial investment of $1,049,000 Restore Hyper Wellness is not the most affordable franchise either.

One of the reasons behind such a strong growth is the franchise’ financial performance. Indeed, a Restore Hyper Wellness salon make on average $924,000 in revenue per year, that’s $370 per square foot, one of the best in the industry!

So if you’re considering investing in a Restore Hyper Wellness franchise, make sure to read this guide. We are diving into its latest Franchise Disclosure Document to find out whether you should invest as at franchisee, and how much profits you can really make with this business.

Key stats

Franchise fee	$44,500
Royalty fee	7.00%
Marketing fee	4.00%
Investment (mid-point)	$1,049,000
Revenue per unit	$924,000
Revenue per sq. ft.	[franchise_value_revenue_per_sq_ft]
Sales to investment ratio	17.0x
Minimum net worth	$750,000
Minimum liquid capital	$200,000

About Restore Hyper Wellness

Headquartered in Austin, Texas, Restore Hyper Wellness is a chain of health and wellness centers.

Restore Hyper Wellness was founded by Jim Donnelly in 2015 while he was training for a triathlon.

Its franchises offer pain management to help people manage chronic pain, accelerate the healing of injuries, restore athleticism, and improve their longevity. They offer services such as cryotherapy, infrared saunas, allergy treatments, and hyperbaric oxygen therapy.

The brand began franchising in 2017 and currently has over 155 units, with 138 franchises and 17 company-owned salons in the US.

Restore Hyper Wellness franchise pros and cons

The Pros:

• Site selection and construction: The franchisor helps its franchisees with the site selection, design, and the build-out of their salons. It also helps them with lease negotiations and vendor referrals.
• Comprehensive training: The brand provides its franchisees with initial and ongoing training programs for owners, managers, nurses, estheticians, and wellness reps. It also helps them carry out a successful grand opening, best practices, customer service, and handling staff.
• Marketing support: The brand has an integrated marketing and publicity team to help its franchisees create awareness. Franchisees also get access to national media, regional advertising, social media, email marketing, and local community marketing tools to reach a wider audience.
• Third-party financing: The brand gives its franchisees financial guidance and access to third-party lenders for the funding of their franchise fees, start-up fees, equipment, inventory, and payroll.
• Exclusive territory protection: Restore Hyper Wellness allows its franchisees to operate in a controlled development market. As long as the agreement is in place, the franchisor does not license any other franchise or competitive salons to operate in the protected location.
• Extensive management and ongoing support: The brand has a designated success manager to guide its franchisees in establishing and growing their salons. It offers its franchisees growth strategies, a network of successful partners, ongoing coaching, and field operations.
• Defensive competitive advantage: Restore Hyper Wellness has embraced a defensible competitive advantage across medical infrastructure, equipment manufacturing, and technology and data integration. Franchisees stand out from the competition and improve their bottom lines.

The cons:

• Not a home-based or mobile unit: The Restore franchise cannot be operated from a mobile unit or home. Franchisees need office space, retail facilities, or warehouses for their operations.
• Not a passive investment: A Restore Hyper Wellness does not allow for absentee ownership investment. It calls for franchisees to actively take part in the decision-making and day-to-day operations of their salons.
• Not a part-time opportunity: The franchise cannot be run part-time or as a side business. Franchisees must adhere to the franchisor’s operating program.

Restore Hyper Wellness franchise costs

As the franchisee you would have to invest around $1,049,000 to open a Restore Hyper Wellness franchise on average.

This amount is much higher (twice as high) compared to salon franchises in general ($450,000 as per our own benchmarks).

This investment is an average that depends on factors like the salon’s location, its size, etc. Generally, the investment ranges between $779,515 and $1,318,840 (FDD 2023).

Startup costs

The investment covers all the startup costs you may need to start a salon. You must pay an initial franchise fee ($20,000 to $44,500) to the franchisor. In addition to the initial franchise fee, the investment also covers:

• Formation Costs: training program costs, leasehold improvements, equipment, furniture, frontage signage, POSsystem, security deposit, permits, business licenses, professional fees, etc.
• Initial Marketing: grand opening marketing expenses
• Operating Costs: first 3 month’s rent, payroll costs before opening, material supplies, medical supplies, insurance, working capital for first 3 months, etc.

Type of Expenditure	Low	High
Initial Franchise Fee	$44,500	$44,500
Formation Costs	$637,990	$1,072,779
Initial Marketing	$25,000	$45,000
Operating Costs	$72,025	$176,561
Total	$779,515	$1,318,840

Restore Hyper Wellness franchise fees

Restore Hyper Wellness franchise revenue

On average, a Restore Hyper Wellness franchise makes $924,000 in revenue per year.

This is the annual median sales of 99 franchised salons operating in 2022 as disclosed in the FDD. Indeed, there were a total of 167 franchises at the end of 2022, but 99 of them were operating for the whole fiscal year.

In 2022, the lowest gross revenue generated by a franchise was $154,000 (vs $458,500 in 2021) and the highest gross revenue was $2,314,000 (vs $1,605,000 in 2021).

Disclaimer

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