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The Diet Center Franchise Cost & Fees

Date of Incorporation: 1992

Franchising Since:  1994

Headquarters: Akron, Ohio

 

Business Description: The franchisee will license and operate a Diet Center location, which will offer weight loss and weight management programs, including counseling and instruction in healthy eating habits, and the franchisee will sell related products to your clients.

 

Franchise Offer: Qualified individuals are offered the opportunity to purchase and establish a single franchise business (a Center) under the trade name “Diet Center” by executing a Franchise Agreement. The franchise offers:

(i) programs and services which the franchisor has developed for weight loss and weight management, known as the Diet Center Program and

(ii) food products and dietary supplements for use with the Diet Center Program.

 

Financial Assistance: The Diet Center does not offer direct or indirect financing, nor does the Diet Center guarantee the franchisee’s note, lease or obligation, if any.

 

Training and Assistance: The franchisor’s on-line Education Program must be successfully complete it prior to attending the certification training class. The Initial Certification Training is a two-week course (approximately 80 hours), which is typically held at Corporate Headquarters. The Diet Center will make available to the franchisee at its sole discretion either at our offices, by personal visit at the franchisee’s location or other locations determined by the franchisor, by telephone, written correspondence, or electronically by e- mail internet or fax or any other means deemed appropriate consultation and guidance in the operation of the Center and for any other ongoing support and assistance that The Diet Center decides is appropriate.

 

Territory: The franchisee will receive an exclusive territory consisting of a defined geographic area (Area). The territory is generally based on a population of between 75,000 and 100,000 people. The franchisee may advertise in media that extends beyond the Area with written consent of the corporate office, but the franchisee may only sell his/her products within the Area. The franchisor may not locate another Diet Center within the Area, however, the franchisor may establish other businesses, including weight management businesses under different names, and may sell products or services under any name, including “Diet Center” and “Exclusively You,” through other avenues, including the Internet, in the franchisee’s Area.

 

Term of Agreement and Renewal: The length of the Franchise Agreement is 10 years. Franchisees have a right to renew for a term of 5 additional years.

 

Obligations and Restrictions: The Diet Center requires that the franchisee personally and actively participate in the franchised business, but if the franchisee has more than one location, the franchisee may have certified managers supervise the additional locations. The on-premises manager cannot have an interest or business relationship with any of business competitors. The manager need not have an ownership interest in a corporate or partnership franchisee. The franchisee must offer and sell only those goods and services that The Diet Center has approved in writing. The franchisee must offer all goods and services that The Diet Center designates as required for all franchisees.

 

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $25,000
Equipment $2,495 $4,874
Furniture, Supplies and Signs $500 $6,000
Opening Inventory $6,000 $8,000
Opening Advertising $3,700 $8,000
Travel and Living Expenses While Training $1,000 $2,000
Real Estate & Improvements $500 $3,000
Insurance $1,347 $3,500
Miscellaneous opening Costs $1,500 $3,000
Additional Funds $2,000 $10,000
Estimated Total $44,042 $73,374

 

Ongoing Fees:

Type of Fee Amount
License Fee $950 per month
Advertising Development and Quality Assurance Fund $149 per month
Sales Commissions at Grand Opening 10% of all program sales and 3% of all product sales
Insurance Initiation Fee $500
Transfer $4,000
Quality Assurance Review Cost and expenses of Review
Late Fee $39
Initial Training No fee charged
Ongoing Training No fee charged
Termination Fee $10,000

Date of FDD: 2011

The above information has been compiled from the FDD of The Diet Center.

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