Initial Investment
Initial Franchise Fee
Royalty
Initial Investment Range
$49,500
10% discount to veterans, discount scale for multiple units.
5%
Royalty is on gross revenue.
$186,620 - $557,470
via Item 7 of our FDD, see below for more details.
Currently, there are 4 corporate-owned units, 6 franchisee units currently operating, and 4 franchisees who are onboarding.
Our requirements to open are at least $75,000 in liquid capital, $350,000 in Net Worth, and a minimum credit score of 680. Essential Speech and ABA Therapy Franchising does not offer any direct financing options, but we work with partners to assist in any of your financing needs.
Estimated Initial Investment
Per Item 7 of our FDD
The estimated initial investment range is defined for the first three months after executing the franchise agreement. Our team recommends franchisees have an additional 3-4 months of operating expenses during the first few months of opening to use as working capital due to potential delays in insurance reimbursement.
Type of Expenditure
Initial Franchise Fee
Onboarding Services Fee
Training Expenses
Leasehold Improvements
Social Media Onboarding Fee
Professional Photography Fee
EMR Services
Furniture and Fixtures
Signage
Technology
Three Months Rent
Security Deposit
Utilities
Office Supplies
Grand Opening Expenses
Local Advertising Requirement
Software
Insurance
Permits and Licenses
Professional Fees
Staffing and Payroll
Therapy Materials
Credentiling Services
Additional Funds
Total
Estimated Amount
$49,500
$2,500
$1,000 - $3,000
$0 - $75,000
$500
$500
$6,120
$5,000 - $30,000
$2,000 - $15,000
$10,000 - $17,000
$15,000 - $45,000
$5,000 - $15,000
$2,500 - $8,000
$500 - $6,000
$5,500
$300
$1,500 - $3,000
$2,000 - $3,600
$900 - $2,500
$1,500 - $4,000
$40,000 - $150,000
$1,000 - $6,000
$7,800 -$9,450
$26,000 - $100,000
$186,620 - $557,470
The figures in this table are estimates. We do not offer direct or indirect financing to you for any items. The availability of financing through third-party lenders, if any, will depend on factors such as the lending policies of such financial institutions, the collateral you may have, your creditworthiness, and the general availability of financing. Unless otherwise noted above, all of the expenditures listed in the Item 7 Chart above are typically non-refundable.
Financial Performance
Per Item 19 of our FDD
Our Franchise Disclosure Document has financial information related to the years: 2020, 2021, and 2022.
In 2020, we reported a Gross Revenue of $1,917,914.99. This was across an average of 16 clients per month at 53% utilization, with one location at the start and end of year.
In 2021, we reported a Gross Revenue of $4,627,127.60. This was across an average of 41 clients per month at 77% utilization, with one location at the start and three locations at the end of year.
In 2022, we reported a Gross Revenue of $6,169,163.35. This was across an average of 53 clients per month at 77% utilization, with three locations at the start and four locations at the end of year.
Your results may vary, please see Item 19 for more information.
Understanding Our Revenue Cycle
It is important to understand the revenue cycle of our business versus other franchises in different industries, as working through medical insurance presents a few key differences!
First, it can take between 7 and 10 weeks to intake a client, including collecting information, having an assessment, and getting insurance authorization for a treatment plan.
Then, there is a difference between services rendered and reimbursement. It can take between 30 and 45 days to receive payment.
Now, the initial process of getting started also has a lead time. It can take between 120 and 180 days to become credentialed (in-network) with insurance providers, and a potential 8 to 16 weeks for your first check from insurance.
Knowing these things ahead of time, we structure our onboarding to limit overhead expenses until necessary, in addition to recommending between 3 and 4 months of working capital. In that way, you can feel confident moving through the initial pre-opening stages and are setup for success!