Franchise Evaluator™: Medi-Weightloss

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

The weight loss market in the U.S. is vast and presents an opportunity to affect the health status of people in the community. The U.S. wellness market is valued at $450 billion, with weight loss representing $143 billion. Obesity accounts for an estimated $173 billion dollars in excess medical costs.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

Losing weight and dieting can be sensitive topics for some, and weight loss is harder for some than it is for others. This leads to “lose weight quick” trends like using the diabetes medication, Ozempic, being used for weight loss. At Medi-Weightloss, programs are backed by science, and medications are FDA-approved for the purpose of weight loss, like Zepbound™ and Wegovy®

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

The Medi-Weightloss® Program is a physician-supervised offering for obese and overweight individuals to take control of their weight. The program takes a comprehensive approach that is customized to each patient’s current health, medical history, food and exercise preferences, and goals.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Medi-Weightloss is No. 1 in medical weightloss. Health will always be the key to a long and productive life, and people are always willing to spend on programs that help them achieve their goals. Competition in the market may come from many sources including other franchised concepts, like Complete Nutrition, and independent weight loss programs.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

In some states, franchisees might need a physician to prescribe and dispense medication. Medi-Weightloss has experience in recruiting and hiring such physicians and has been able to open franchises by utilizing a management service agreement (MSA) with a physician-controlled entity. Furthermore, the brand has extensive relationships with outsourced healthcare attorneys to assist with business formation and other documentation related to the start-up of a franchise.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

Medi-Weightloss has been around for two decades and currently has an NPS (Net Promoter Score) of 85. Due to its commitment to evidence-based practices, several of Medi-Weightloss’ clinical outcomes have been published in the Journal of Public Health. To stand out in the wellness industry, Medi-Weightloss offers new FDA-approved weight loss medications like Wegovy and Zepbound.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

CEO Ken Hall has more than 20 years of multi-site health services operations experience and holds an MBA from the Marshall School of Business at the University of Southern California and an undergraduate degree with dual concentrations in Marketing and Finance from the Wharton School of Business at the University of Pennsylvania. Throughout his career, Hall has served as VP of Sales and Operations at Miracle-Ear and VP of Operations at Luxottica, managing the LensCrafters brand. Macklin Guzman, D.H.Sc., MPH: Chief Scientific Officer Dr. Guzman has served as Medi-Weightloss Chief Scientific Officer since March 2017 in Tampa, Florida. Dr. Gretchen San Miguel has served as the Medical Director of MWLF since February 2019 in Tampa, Florida. From August 2009 through May 2018, Dr. San Miguel served as a full-time physician at Florida Hospital Waterman in Tavares, Florida, and as a System Operations Council Member and Chair of Network Operations for Florida Hospital Medical Group out of Maitland, Florida

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Medi-Weightloss seeks candidates who can manage and motivate a team and want to make an impact on the lives of others. Candidates that have a background in health care, B2B/B2C sales, corporate leadership, or previous multi-site experience have skill sets with demonstrated success. Medi-Weightloss® offers a comprehensive five-day training program at the corporate office in Tampa, Fla., for both franchisees and their entire staff. Training encompasses a wide variety of areas, including:

• The Medi-Weightloss® Program
• Medi-Weightloss® Adolescent Program
• Clinic Management Software with integrated electronic health records
• Sales training and customer service
• Medical guidelines and protocol
• Compliance and pharmacy management
• Signature supplements and products
• Marketing policies and programs
• Operations and finance
• Nutrition and exercise counseling
• IV therapy

Regional Franchise Consultants are also there to provide ongoing support.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

In November 2022, Audax Private Equity announced the acquisition of Medi-Weightloss, Inc., a leading operator of science-based, physician-supervised weight-loss and wellness clinics, with approximately 100+ franchised and company-owned locations nationally. Buzz Franchise Brands is co-investing alongside Audax as a minority-stake partner. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 360 employees and over 150 investment professionals, the firm is a leading capital partner for North American middle market companies.

We categorize the Financial Health as Sound.