Medi-Weightloss Business Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $251,000 to $494,000
• Franchise Fee: $60,000
• Royalty: Greater of $2,250 per month or 10% of monthly Gross Sales
• Marketing / Ad Fee: The disclosure does not clearly establish a system ad fund percentage
• Key additional recurring fees: Technology fee of $350 per month
• Number of locations: 87 franchised outlets and 17 company-owned outlets at year-end 2024; 104 total
• Best Fit: Owner involvement is not clearly established in the disclosure

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The estimated initial investment for a single territory is $251,000 to $494,000, which places this in a relatively high startup cost range.

Major disclosed cost drivers include:

• Initial franchise fee: $60,000
• Initial package fee: $49,000 to $54,000
• Training fee: $15,000
• Grand opening program: $15,000
• Malpractice insurance: $0 to $4,300
• Optional IV therapy program: $0 to $10,000
• Additional funds: $20,000 to $60,000

The disclosure also shows a subtotal of $139,000 to $158,300 for the listed initial fees before the broader total investment range. That suggests a meaningful portion of startup cost sits outside the upfront franchise-related fees, likely in buildout, equipment, working capital, and related opening costs, though the provided details do not fully break those out here.

For multi-unit development, the disclosure lists development fees that scale by unit count, including $110,000 for 2 units, $135,000 for 3, $180,000 for 4, $225,000 for 5, $240,000 for 6, $280,000 for 7, $320,000 for 8, $360,000 for 9, and $350,000 for 10+.

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Key recurring fees disclosed include:

• Royalty fee: Greater of $2,250 per month or 10% of monthly Gross Sales
• Technology fee: $350 per month
• Marketing / ad fee: The disclosure does not clearly establish a required brand fund percentage in the provided information

Overall, the recurring fee load appears meaningful because the royalty is percentage-based but also has a monthly minimum. That structure can be more burdensome at lower sales volumes, while the technology fee adds a fixed monthly cost regardless of revenue.

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Yes, the FDD includes Item 19 financial performance data for fiscal year January 1, 2024 through December 31, 2024.

Important scope notes from the disclosure:

• There were 87 franchised businesses operating as of December 31, 2024
• 82 operated for the full fiscal year
• 57 of those reported expenses in a format the franchisor considered sufficiently reliable for comparative purposes; these are the Reporting Businesses used for the revenue-plus-expense tables
• The figures are not audited or reviewed by the franchisor
• The data excludes company-owned businesses and licensed businesses

All 57 Reporting Businesses

• Average Gross Sales: $989,143
• Median Gross Sales: $883,593
• Gross Sales range: $207,479 to $2,897,026
• Average Total Cost of Goods Sold: $194,593
• Median Total Cost of Goods Sold: $156,480
• Average Gross Profit: $794,551
• Median Gross Profit: $727,113
• Gross Profit range: $174,197 to $2,238,129

The full-system table in the provided disclosure excerpt is truncated after compensation expense, so average and median figures for all-system selected operating expenses and net income before other expenses are not clearly established from that table excerpt.

Top third (19 Reporting Businesses)

• Average Gross Sales: $1,635,923
• Median Gross Sales: $1,438,210
• Range: $1,054,398 to $2,897,026
• Average Gross Profit: $1,307,115
• Median Gross Profit: $1,179,985
• Gross Profit range: $633,638 to $2,238,129
• Average Compensation, Benefits, & Payroll Taxes: $535,959
• Average Rent: $70,469
• Average Local Advertising/Marketing: $105,678
• Average Total Selected Operating Expenses: $712,105
• Average Royalty Fees: $134,689
• Average Net Income Before Other Expenses: $460,322
• Median Net Income Before Other Expenses: $391,504
• Range: -$19,333 to $970,009

Middle third (19 Reporting Businesses)

• Average Gross Sales: $855,509
• Median Gross Sales: $883,593
• Range: $678,980 to $1,009,633
• Average Gross Profit: $696,584
• Median Gross Profit: $697,507
• Gross Profit range: $521,673 to $866,778
• Average Compensation, Benefits, & Payroll Taxes: $336,447
• Average Rent: $49,770
• Average Local Advertising/Marketing: $57,752
• Average Total Selected Operating Expenses: $443,969
• Average Royalty Fees: $92,055
• Average Net Income Before Other Expenses: $160,560
• Median Net Income Before Other Expenses: $156,963
• Range: -$39,284 to $316,368

Bottom third (19 Reporting Businesses)

• Average Gross Sales: $475,999
• Median Gross Sales: $488,291
• Range: $207,479 to $624,216
• Average Gross Profit: $379,952
• Median Gross Profit: $388,700
• Gross Profit range: $174,197 to $514,067
• Average Compensation, Benefits, & Payroll Taxes: $175,791
• Average Rent: $35,794
• Average Local Advertising/Marketing: $41,318
• Average Total Selected Operating Expenses: $252,902
• Average Royalty Fees: $54,035
• Average Net Income Before Other Expenses: $73,015
• Median Net Income Before Other Expenses: $38,101
• Range: -$55,647 to $257,916

What the numbers suggest

The spread is wide. Average gross sales range from about $476,000 in the bottom third to about $1.64 million in the top third, and the full reported range runs from $207,479 to $2.90 million. That indicates location-level outcomes vary materially.

The disclosed net income before other expenses is not the same as bottom-line profit. The disclosure expressly frames it as before other expenses, so it should not be treated as take-home earnings or final profitability. Even within the top third, the low end was negative, and both the middle and bottom thirds also included negative results.

The expense structure shown in the tables also suggests labor is a major operating cost. Compensation, benefits, and payroll taxes averaged 33% of gross sales in the top third, 39% in the middle third, and 37% in the bottom third.

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• Primary model: The disclosure suggests a consumer-facing operating business with branded products and services, although the structured classification fields are not fully consistent
• Revenue pattern: Appears to include both ongoing service revenue and product revenue rather than a one-time transaction model
• Operational characteristics: Physical location-based business with rent, payroll, local advertising, technology fees, and product cost of goods sold; the disclosure also indicates significant technology use and references ancillary products and services through a Medi-Living Addendum

The disclosure does not clearly establish the required ownership format, whether a dedicated manager is required, or whether the model is suitable for semi-absentee ownership.

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Advantages

• Item 19 includes actual 2024 gross sales, gross profit, selected operating expenses, royalty fees, and net income before other expenses for 57 reporting businesses
• The system had 104 total outlets at year-end 2024, including 87 franchised and 17 company-owned units
• Gross profit as a percentage of gross sales was reported at about 80% to 81% across the top, middle, bottom, and combined group tables before operating expenses
• The disclosure includes multi-unit development fee schedules, which may matter for buyers considering a larger territory buildout

Considerations

• Startup cost is substantial at $251,000 to $494,000 for a single territory
• The royalty is the greater of 10% of gross sales or $2,250 per month, which can pressure lower-volume units
• Territory is non-exclusive, limiting geographic protection
• Reported performance varies widely, with gross sales ranging from $207,479 to $2,897,026 among reporting businesses
• Item 19 figures are unaudited and based on a subset of full-year franchised businesses for the expense tables

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This franchise may fit someone prepared for a higher-cost, location-based operating business with payroll, rent, product costs, and recurring fees, and who is comfortable underwriting performance using a wide range of possible outcomes rather than a narrow average.

It likely does not fit someone seeking a low-cost entry, a simple fee structure, clearly defined semi-absentee expectations, or exclusive territory protection.

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• The franchisor may terminate without cause, according to the disclosure
• The franchise term is 10 years, so the investment must be evaluated over a long contractual period
• Florida law governs the agreement, and disputes are resolved under the agreement terms stated in Item 17
• The franchisor is the sole supplier of branded products and services and the only approved supplier for certain other products, which may limit sourcing flexibility
• The franchisor also sells products and services directly to the public through e-commerce, creating potential channel overlap

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Medi-Weightloss Business presents a higher-cost operating model with meaningful recurring fees and a broad range of reported sales outcomes. The main tradeoff is that the FDD shows some units generating substantial revenue and pre-other-expense income, but the model also carries notable variability, non-exclusive territory, and a fee structure that can weigh more heavily on lower-volume locations.

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