Ellie Mental Health Franchise in 2024: Costs, Fee & FDD
Explore Ellie Mental Health’s innovative franchise model that meets rising demand for accessible mental health services. Discover investment costs, unique support for franchisees, and the brand’s rapid growth in this comprehensive analysis.
Table of Contents:
Ellie Mental Health is an innovative and fast-growing franchise focused on providing accessible and personalized mental health services. Founded by Erin Pash and Kyle Keller, Ellie Mental Health was established to address the growing demand for quality mental health care and the shortage of accessible options. The founders aimed to create a comfortable, stigma-free environment where people can access therapy and support services tailored to their unique needs. By focusing on both client-centered care and therapist well-being, Ellie Mental Health has carved out a distinctive space in the mental health industry.
At its core, Ellie Mental Health offers a wide range of services, including individual therapy, couples counseling, family therapy, and group therapy sessions. The franchise also provides specialized support for various mental health needs, including trauma, anxiety, depression, and behavioral health issues. Ellie’s primary clients range from individuals seeking support for day-to-day struggles to those requiring more intensive, specialized care. Their approach, rooted in compassion and flexibility, appeals to clients of all ages who seek a personalized therapy experience.
Since its founding, Ellie Mental Health has rapidly expanded, with locations across several U.S. states. Each location serves a steady stream of clients, thanks to the high demand for accessible mental health care and the franchise’s unique model that focuses on a welcoming, inclusive environment. Ellie Mental Health’s reach continues to grow, and its franchising model allows local operators to open clinics that serve their communities while adhering to Ellie’s standards of care and operational excellence.
Ellie Mental Health franchisees benefit from a robust support system that includes comprehensive training in clinical practices, business management, and client engagement strategies. New franchisees receive initial training as well as ongoing support to ensure they’re equipped to manage their practice and provide high-quality care. Additionally, Ellie Mental Health provides marketing resources and operational guidance, creating a strong foundation for franchisees to succeed and make a positive impact in their communities.
Ellie Mental Health Franchise Insights
- Ellie Mental Health has expanded to 206 locations in the U.S., with 183 franchised units and 23 corporate-owned locations, demonstrating strong national growth since franchising began in 2021.
- Ellie prioritizes the well-being and work-life balance of therapists, which has been key in attracting and retaining skilled mental health professionals—a critical factor in maintaining high-quality care.
- Founded in 2015, Ellie Mental Health has built a reputable presence in the mental health sector, meeting the growing demand for accessible, community-based care.
Ellie Mental Health Franchise Key indicators
Growth YOY (%)
409%
vs industry 9%
Total U.S. Franchised Units
183
3-Year Failure Rate
0%
vs industry 8%
Sales-to-Investment ratio
0.9:1
How much does it cost to open an Ellie Mental Health franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening an Ellie Mental Health franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening an Ellie Mental Health franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open an Ellie Mental Health below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Onboarding Package Fee | $40,000 | $40,000 |
| Credentialing Services Fees | $1,000 | $2,000 |
| Lease Deposit and Payments | $16,500 | $59,000 |
| Utility Deposits | $1,000 | $2,500 |
| Local Pre-Opening Marketing | $13,000 | $15,000 |
| Furniture, Fixtures, & Equipment | $20,000 | $40,000 |
| Computers and Office Equipment | $3,700 | $10,600 |
| Leasehold Improvements/Buildout | $30,000 | $100,000 |
| Architectural and Engineering Services | $0 | $10,000 |
| Project Management Services Fee | $2,500 | $13,325 |
| Exterior Signage, Interior Signage, and Graphics | $1,000 | $10,000 |
| Insurance | $1,000 | $3,000 |
| Permits, Licenses, and Accreditation | $1,000 | $5,000 |
| Accounting and Legal Fees | $10,000 | $20,000 |
| Training Expenses | $1,000 | $3,000 |
| Additional Funds – 3 Months | $88,600 | $115,450 |
| Total Estimated Initial Investment | $290,300 | $508,875 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open an Ellie Mental Health franchise, the required capital involves both the initial investment costs and a net worth requirement set by Ellie Mental Health. Let’s take a closer look below:
- Initial Investment With a total initial investment range of $290,300 to $508,875, a franchisee should ideally have access to sufficient capital to cover these startup costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets In the healthcare industry, franchises typically require liquid assets in the range of $75,000 to $150,000 to ensure franchisees have the necessary cash flow to cover operational costs and early-stage expenses.
- Net Worth An estimated net worth of $300,000 to $600,000 may be expected, as franchises in this field often seek financially stable franchisees who can support the business through the initial setup and early operations.
How much does an Ellie Mental Health franchise owner make?
Calculating the salary of an Ellie Mental Health franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an Ellie Mental Health franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Ellie Mental Health Revenue & Gross Sales
Based on the most recent data, Ellie Mental Health franchises achieved a median gross sales of $315,095. This financial performance underscores the brand’s robust consumer demand and potential for lucrative returns for franchisees.
Which key factors impact the average revenue performance of Ellie Mental Health franchisees?
The performance of Ellie Mental Health franchisee median gross sales in the past year is likely influenced by several key factors. Increased awareness and prioritization of mental health, especially in the wake of the COVID-19 pandemic, have driven more people to seek professional help, boosting demand for services offered by Ellie Mental Health locations. Additionally, Ellie’s focus on community-based, accessible care has resonated with clients, particularly as mental health becomes a more openly discussed and less stigmatized issue. The franchise’s tech-forward approach, comprehensive marketing, and client-centered care model have helped attract and retain a diverse client base, including millennials and families. As Ellie expands its reach and reputation across the U.S., brand recognition has also likely contributed to a steady or improved revenue performance across franchises.
Ellie Mental Health Franchise Operational Costs
For an Ellie Mental Health franchise, here are the primary ongoing operational costs to consider:
- Staff Salaries and Benefits Wages for licensed therapists, administrative staff, and any other team members needed to operate the clinic.
- Office Lease and Utilities Monthly rent and utility costs for the clinic space, which can vary depending on location.
- Insurance Business, liability, and professional insurance to cover potential risks and maintain compliance.
- Office Supplies and Therapy Materials Regular expenses for office supplies, therapeutic tools, and client-related materials.
- Technology and Software Costs for client management systems, electronic health records, and telehealth platforms, which are crucial for efficient clinic operations.
- Marketing and Community Outreach Ongoing local marketing to maintain client flow and engagement with the community.
These operational costs are essential to running a mental health clinic effectively and should be accounted for in your financial planning.
Ellie Mental Health Franchise Fees
Owning an Ellie Mental Health franchise is different from owning an independent, non-franchised business. All franchises tend to charge ongoing fees that franchisees are required to pay to operate. Ellie Mental Health requires their franchisees to pay the below fees:
- Qualified Clinician System Fee 7.5% of collected revenue per qualified clinician each month, capped at $1,000 per clinician. This fee is payable on the 10th day of each month for the prior month’s revenue.
- Qualified Prescriber System Fee 7.5% of collected revenue per qualified prescriber each month, with a cap of $3,000 per prescriber. This fee is also due on the 10th day of each month for the previous month.
- Marketing Fee $100 per month per qualified clinician and prescriber, which contributes to the system’s brand fund. This fee is also payable monthly.
These fees are essential for maintaining the franchise’s operations and supporting the brand’s growth.
Ellie Mental Health Franchise Earnings
Based on the most recent data, an Ellie Mental Health franchise generated median gross sales of approximately $315,095. For an owner-operator, estimated earnings were around $63,019. This figure reflects the potential net income for franchisees actively involved in daily operations, allowing them to closely manage expenses and maximize profitability.
The franchise’s earnings potential is influenced by various factors, including efficient operational practices and effective client acquisition. With ongoing demand for mental health services, this earnings figure provides a solid baseline, though profitability may vary based on local market conditions, competition, and franchisee management skills. Prospective franchisees should evaluate these numbers within the context of their location and business strategy to better project their own financial outlook.
How to Open a Ellie Mental Health Franchise
Here’s a step-by-step overview of the process to become an Ellie Mental Health franchisee, from initial inquiry to launching operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Introductory Call After your inquiry, you’ll have an introductory call with a franchise representative. This conversation helps determine if Ellie Mental Health aligns with your goals, and it’s a great opportunity to ask preliminary questions about the business.
- Franchise Application If you’re interested in proceeding, you’ll complete a franchise application, which allows Ellie Mental Health to assess your qualifications, financial background, and commitment to the brand’s mission.
- Discovery Day Attend a Discovery Day at Ellie Mental Health’s headquarters, where you’ll meet the leadership team, see the brand’s operations up close, and get a feel for the company culture. This immersive experience provides valuable insights into daily life as a franchisee.
- Franchise Agreement Signing If both you and Ellie Mental Health feel it’s a good fit, you’ll sign the Franchise Agreement. At this stage, you’ll pay the initial franchise fee, officially becoming part of the Ellie Mental Health franchise network.
- Training Program Participate in a comprehensive training program covering clinical operations, marketing, client management, and business operations. This training ensures you’re equipped to run your clinic successfully from day one.
- Site Selection and Setup Work with the Ellie team to secure a location, handle lease negotiations, and prepare the clinic for opening. This phase includes leasehold improvements, furnishing, and obtaining the necessary licenses.
- Local Marketing and Pre-Opening Preparation Ellie Mental Health assists in launching pre-opening marketing campaigns to build community awareness. During this time, you’ll also finalize staffing, set up operational systems, and prepare for client onboarding.
- Grand Opening With everything in place, you’re ready to launch! Ellie Mental Health’s support team may assist with the opening to ensure a smooth start, helping you establish a successful clinic in your community.
Pros & Cons
Pros
High Demand for Mental Health Services: With increasing awareness and acceptance of mental health care, the demand for mental health services is on the rise, providing a steady client base.
Positive Social Impact: By providing essential mental health services, you’re contributing to the well-being of your community, which can be highly rewarding personally and professionally.
Exclusive Territory: Each franchise operates within an exclusive territory, reducing local competition and allowing you to establish a strong market presence.
Flexible Service Offerings: Ellie offers a range of mental health services, from therapy to specialized programs, which allows you to meet diverse client needs and maximize revenue streams.
Cons
Operational Complexity: Managing a mental health clinic involves regulatory compliance, managing licensed clinicians, and maintaining a high level of client care, which may require intensive hands-on involvement.
Dependence on Qualified Staff: Finding and retaining licensed clinicians and prescribers can be challenging, and staff turnover could impact the clinic’s continuity and profitability.
Recurring Fees per Clinician: The franchise has recurring fees based on the number of clinicians and prescribers, which could affect profit margins as your staff expands.
Limited Passive Investment Potential: Ellie Mental Health’s model requires active management and involvement, which may not suit investors looking for a more hands-off business.
