Franchisel.com — FDD Diligence Memo
md-hyperbaric
Generated 2026-04-06 · 2026 FDD · Government-filed source
md-hyperbaric
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
9
Fin Strength
4
Support
6
Contract
7
Red Flags & Key Signals
Review Item 3 narrative for claim types. Franchisee-vs-franchisor suits are a stronger red flag than third-party disputes.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
Avg $359,531 from government-filed FDD. Transparent disclosure is a positive signal.
Franchisor financial statements are audited by ey with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $359,531 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2026 FDDModest growth — net +4 units.
→ StableSystem is expanding slowly.
Total Units
0
Net Growth
+4
Turnover
0%
Year-over-Year Trends
2026 FDDOpened
+0
Closed
-0
Net
+4
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2026 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Revenue type unclear
The FDD does not clearly specify whether figures are gross sales, net sales, or a profit metric. This limits comparability.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2026)
Revenue figures are from 2026 — recent and relevant.
Medium extraction confidence
Revenue figure extracted with medium confidence. Cross-check with source FDD before relying on this number.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
The agreement includes a 2-year, 25-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?
Look for: Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
The Item 2 business experience section doesn't show prior franchise system experience in leadership. Ask: how does the corporate team support franchisees who are struggling operationally?
Look for: Whether they have franchise-specific field support, franchise advisory councils, or prior experience navigating the franchisor-franchisee relationship.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Long-tenured executives (5+ years); recent leadership changes detected.
Item 2 · 2026 FDD · confidence: medium
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales.
Item 12 · 2026 FDD
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with MN CARDS (file #35535). Source: 35535-2026.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.