Ellie Mental Health Franchise to Open 400+ Units (2024)
Ellie Mental Health Franchise and associated franchises provide counseling, medication management, and therapeutic products and services, by licensed clinical counselors, therapists, and prescribers.
Ellie was founded in 2015 by Erin Pash and Kyle Keller when they opened the first Ellie clinic. Since then, the Ellie brand has continued to grow with multiple clinics in Minnesota and a growing number of franchises across the country.
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How Much Is an Ellie Mental Health Franchise?
The initial Ellie Mental Health Franchise Fee is $60,000. You have to pay this upfront fee when opening.
Franchise Cost
The estimated total investment necessary to begin the operation of an Ellie Mental Health Franchise ranges from $200,000 to $405,000. The following costs are part of the upfront costs included in the initial investment. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy an Ellie Mental Health franchise in 2022 .
| Type of expediture | Amount | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial Franchise Fee | $60,000 | $60,000 | Us |
| Outreach Fee | $6,000 | $6,000 | Us |
| Initial Supply Package | $1,500 | $4,500 | Us |
| Technology Set-Up Fee | $500 | $500 | Us |
| Lease Deposit and Payments | $25,333 | $62,667 | Landlord |
| Utility Deposits | $1,000 | $2,500 | Vendors |
| Pre-Opening Marketing | $6,500 | $13,000 | Us and vendors |
| Fumiture, Fixtures & Equipment | $15,000 | $20,000 | Vendors |
| Computers and Office Equipment | $2,900 | $9,000 | Vendors |
| Leasehold Improvements/Buildout | $15,000 | $75,000 | Vendors |
| Architectural and Engineering Services | $0 | $10,000 | Vendors |
| Project Management Services Fee | $7,500 | $18,325 | Vendors |
| Exterior Signage, Interior Signage, and Graphics | $2,500 | $10,000 | Vendors |
| Insurance | $1,000 | $3,000 | Vendors |
| Permits, Licenses and Accreditation | $1,000 | $5,000 | Government Agencies |
| Insurance Contract and Credentialing | $0 | $6,750 | Us |
| Accounting and Legal Fees | $10,000 | $20,000 | Vendors |
| Accounting Services Vendor Review Fee | $0 | $250 | Us |
| Training Expenses | $1,000 | $3,000 | Vendors |
| LMS Library Fee | $2,500 | $2,500 | Us |
| Additional Funds – 3 Months | $41,780 | $72,965 | Us, vendors and government agencies |
| TOTAL | $201,013 | $404,957 | |
Ellie Mental Health Franchise Requirements
- A minimum net worth of $1 million
- Liquid Capital of $250,000
Ongoing Fees
System Fee: $1,000 per month per Qualified Clinician in the prior month
Medication Management Providers System Fee: $3,000 per month per Qualified Prescriber in the prior month
Marketing Fee: $50 per month per each Qualified Clinician and Qualified Prescriber in the prior month
Local Marketing: Spend $75 per month per each Qualified Clinician and Qualified Prescriber in the prior month
Technology Fees: Currently, $145 per month per Qualified Clinician in the prior month. Currently, $350 per month per Qualified Prescriber in the prior month
Shared Services Fees: $700 per month per Qualified Clinician in the prior month (reduced to $420 per month per Qualified Clinician in the prior month for the first 6 months for your first Franchised Business), $850 per month per Qualified Prescriber in the prior month
Contract and Credentialing Fee: Currently, $500 per provider
LMS Library License Fee: $2,500 annually for your first Franchised Business only
Website Modification Fee: Currently, $100 per hour, after the initial Franchised Business webpage is set up
How Many Ellie Mental Health Units Have Opened and Closed?
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 | |
| 2021 | 0 | 0 | 0 | |
| Company-Owned | 2019 | 3 | 4 | +1 |
| 2020 | 4 | 10 | +6 | |
| 2021 | 10 | 15 | +5 | |
| Total Outlets | 2019 | 3 | 4 | +1 |
| 2020 | 4 | 10 | +6 | |
| 2021 | 10 | 15 | +5 |
At the end of 2021, Ellie Mental Health had 15 locations open, which were all company-owned. Additionally, the company did not provide financials for certain locations.
A quote from BHBusiness reads: “The company has since sold and awarded just over 400 clinic sites to about 130 franchisees across 32 states since beginning in Aug. 2021. Today, Ellie Mental Health directly owns and operates 20 locations in Minnesota, Ellie’s corporate market, and plans to open as many as five more locations by the end of 2022.”
Since the company had no franchises at all at the end of 2021, this is going to be a huge jump for the company and its management will need to execute well.
Conclusion
The Healthcare business in the USA is taking off as the destigmatization of mental health issues has accelerated. Also, more people have been suffering from mental health issues due to the physical, social, and emotional effects of COVID-19. As well as the effects of increased isolation and excessive time on devices, among other reasons. Ellie Mental Health is trying to carve a niche for itself in that industry but still has to prove its business.
However, beware of the challenges of starting a mental health business. Ellie Mental Health undoubtedly has strict requirements, rules, and regulations for franchisees; still, being responsible for hundreds of patients who are battling mental health issues is a major undertaking, filled with health and legal risks.
We recommend talking to 3 – 5 franchisees and waiting for a while for the franchisor to prove its model before starting your franchise.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Healthcare Industry.
