About Living Rite Franchise
Living Rite is a franchise brand that has been offering business opportunities since 2021.
The company provides franchise owners with a structured business model, training, and support to help them build a successful operation in their community.
The franchise fee is $25,000.
Living Rite Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 2% of gross monthly sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Local Advertising Fee: $100 per month per Full Time Mental Health Provider; Advertising Fund: 2% of gross revenues per month | National brand fund |
| Total Investment Range | $37,300 – $107,950 | Includes build-out, inventory, working capital |
The investment range of $37K–$108K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2% of gross monthly sales) and marketing fee (Local Advertising Fee: $100 per month per Full Time Mental Health Provider; Advertising Fund: 2% of gross revenues per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Furniture and Equipment | $2,500 | $8,000 |
| Office Improvements (Construction, Remodeling) | $0 | $40,000 |
| Computer equipment | $1,500 | $5,000 |
| Signs | $250 | $1,000 |
| Business Licenses and Permits | $150 | $500 |
| Professional, Legal and Accounting Fees | $500 | $1,500 |
| Office Supplies | $100 | $500 |
| Insurance Cost | $1,000 | $3,000 |
| Rent (Security Deposit and 3 month’s rent) | $2,500 | $7,500 |
| Utility Deposits | $100 | $500 |
| Phone, Internet & Cable Set-up | $100 | $700 |
| Administration / Support Staff | $2,000 | $3,250 |
| Training Costs (Travel, Meals, Lodging, Salaries) | $500 | $1,500 |
| Additional Funds (Working capital to cover three months of operating expenses such as payroll, utilities, and advertising during early stages of operation until cash flow builds up) | $1,500 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5000, non-refundable |
| Renewal Fee | $500, non-refundable |
| Technology Fee | Up to 2% of gross monthly sales (currently 1%) |
| Audit Fee | Cost of audit (if discrepancy of 2% or more) |
| Call Center/Support Fee | 3% of gross monthly sales |
| Credit Card Processing Fees | Actual Cost (currently, up to 3% per transaction) |
| Additional Training Fee | $50 per day per employee |
| Annual Meeting, Continuing Education, Mandatory Conference or Convention Fee | Actual Cost + 10% administrative fee |
| Optional Consulting Charges | Up to 2 hours each month = No Charge; Each Additional Hour = $100/hour |
| Lease Review Fee | $750 |
| System Modifications | Cost of implementation, unlimited. |
| Temporary Management Assistance | Currently, $400 per hour, plus our expenses and costs |
| Interest on Past Due Amounts | 8% per year or the highest amount allowed by applicable law, whichever is less |
| Attorney’s Fees | Total amount of attorney’s fees incurred |
| Indemnification | Total amount of costs and fees incurred by Us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 45 hours |
| Classroom Training | 45 |
| On-the-Job Training | 15 |
| Training Location | Gatlinburg, Illinois |
| Additional Training | We may require you or your employees to attend additional training programs or refresher courses as necessary for successful development of the franchised business at our sole discretion; we may charge you $50 per day for each employee who we require to attend additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | approximately 20,000 people |
| Description | An Approved Territory is granted, defined by zip codes, municipality borders, or other means, based on factors including geographic area, population density, character of neighborhood, location, and number of competing businesses. A typical approved territory covers an area with a population density of approximately 20,000 people. You will not receive an exclusive territory and may face competition from other franchisees, company-owned centers, or other channels of distribution. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one (1) additional term of ten (10) years or for Your then-current lease term, whichever is shorter |
| Renewal Fee | $500 |
| Renewal Conditions | Good standing; timely notice of renewal; cure of all outstanding defaults; signing of new franchise agreement in then-current form that may contain materially different terms and conditions than the Franchise Agreement in this Disclosure Document; payment of then current renewal fee; execution of general release. |
| Transfer Fee | $5000, non-refundable |
| Transfer Conditions | New franchisee qualifies, payment of all of your outstanding debts to us, cure of any defaults, current agreement signed by new franchisee or assumption of current agreement, transfer fee paid, training completed, and release signed by you and your Related Parties. |
| Termination for Cause | We can terminate only if you default. Defaults include misuse of trademarks, breach of non-competition, unauthorized assignment, material misrepresentation, lack of prior written consent, abandonment, repeated defaults, threat to public health or safety, loss or suspension of professional license, bankruptcy, conviction of felony, false books/reports, non-compliance with HIPPA, or unauthorized offering/prescribing of medication. |
| Non-Compete Period | during the term of this Agreement and for two (2) years after the Termination of this Agreement |
| Non-Compete Details | During the term, no competing business (brick and mortar or virtual) within 50 miles of your MHB Approved Territory or any other MHB/LivingRite™ location. After termination or expiration, no competing business for 2 years within 50 miles of your current Approved Territory or within 50 miles of another franchise’s Approved Territory (including after assignment), and no competing business at the Approved Location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or a principal if a legal entity) must personally supervise the franchised business as the lead mental health provider and practice manager. This individual must be a duly licensed mental health professional and successfully complete the franchisor's training program. The practice manager cannot have an ownership interest or business relationship with competitors. All principals and employees must sign confidentiality and non-compete agreements. Principals must also sign a Personal Guaranty and Subordination Agreement, and spouses may be required to sign to satisfy creditworthiness standards. |
| Required Suppliers | You must purchase certain equipment, vendor services, materials, supplies and certain computer software to be used in connection with operating a LIVINGRITE™ BUSINESS from our approved suppliers. MHB is currently the only approved supplier of certain software, technology and promotional materials for your staff. |
| Supply Restrictions | We reserve the right to change the list of approved suppliers from time to time and reserve the right to become the exclusive designated supplier of any such products or services. Approval of suppliers may be revoked in writing. |
| Franchisor Revenue from Suppliers | MHB did not have any franchisees as of the Issuance Date, so no revenue from required purchases or leases by franchisees. However, in the future, MHB and/or its affiliates may derive revenue and other material consideration, including through rebates or mark-ups on your required purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or any other obligation. We do not have any agents or affiliates who offer financing directly or indirectly to you. |
Living Rite Franchise Earnings — Item 19
Living Rite does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Living Rite Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Living Rite System Growth
Living Rite currently operates 3 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 3 |
| 2021 | 0 | 0 | 3 |
| 2022 | 3 | 0 | 6 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Plante & Moran, PLLC for year ending December 31.
Living Rite Franchise — FAQ
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