Ellie Mental Health Franchise Costs $279K - $480K (2024 FDD)

Ellie Mental Health was founded in 2015 by Erin Pash and Kyle Keller in Minnesota, focusing on providing accessible and innovative mental health services. The organization started its franchising journey in 2021, expanding its mission to better the lives of everyday families through innovative wellness programs, goods, and services. 

Ellie Mental Health stands out for its socially responsible approach, focusing on creating an unparalleled client experience with high-quality, creative, and innovative care, and fostering an employment environment where employees are valued and treated with genuine care​​​​.

The franchise offers comprehensive support in areas such as real estate, finance, site build, marketing, recruitment, and training, along with ongoing support for brand development, intake scheduling, medical records and billing management, and therapist credentialing. This ensures that franchisees can focus on providing exceptional care to their communities​​.

What sets Ellie Mental Health apart is not only its commitment to high-quality mental health services but also its engagement in community support through initiatives like the Complex Family Systems program and Law Enforcement & First Responders program. Additionally, the co-founders' contributions to mental health awareness through literature and a socially conscious clothing line further underscore the organization's dedication to supporting mental health on multiple fronts​​.

Initial Franchise Fee

The standard initial franchise fee for each Ellie Mental Health Franchised Business is $60,000. This fee is due and payable upon signing the Franchise Agreement and is non-refundable. It is fully earned by the franchisor upon the signing of the agreement, with no financing options offered by the franchisor for this fee. Discounts are available under specific conditions, such as signing multiple Franchise Agreements simultaneously or for veterans and first responders.

Royalty Fee

A monthly nonrefundable fee of seven and one-half percent (7.5%) of Collected Revenue of the Franchised Business in the prior calendar month is payable to the franchisor​​.

Advertising Fee

Franchisees are required to pay a nonrefundable marketing fee of $100 per month for each Qualified Clinician and Qualified Prescriber in the prior month. This fee is part of the franchisor's efforts to support marketing and promotional activities and is due on the 10th day of each calendar month for the previous month's activity.

Marketing Fee

There's a marketing fee of $100 per month per each Qualified Clinician and Qualified Prescriber in the prior month, contributed to the System Brand Fund. Additionally, there's a local marketing spend requirement of $50 per month per each Qualified Clinician and Qualified Prescriber, which is also contributed to the System Brand Fund if the minimum spend is not met​​.

The franchisor provides various types of training to franchisees, which include:

Initial Training Program

• An initial training program is provided at a suitable location chosen by the franchisor or virtually, at the franchisor's discretion. This program is designed for the franchisee, the owners of the franchisee, and the Clinic Director of the Franchised Business. The initial training is provided without charge for certain attendees attending together before the opening of the Franchised Business, but additional attendees will be subject to current charges.

Additional Optional Training

• Upon request, the franchisor offers additional training on topics chosen by the franchisee and agreed upon by the franchisor. This training can be provided at a location determined by the franchisor or electronically. Fees are charged for this training, which must be paid before the training begins.

Additional Required Training

• The franchisor may occasionally require the franchisee to undergo specific training on operations to be implemented at the Franchised Business or new procedures. This training could be held at a franchisor-determined location or provided electronically, with fees charged based on the franchisor's current training fees plus all actual costs for the trainers, including travel, lodging, and meal expenses.

On-Site Training

• Upon the franchisee's request, the franchisor can provide additional on-site training at the Franchised Business on topics requested by the franchisee and agreed upon by the franchisor. The franchisor charges fees for this on-site training, which must be paid before the training commences.

The franchisor provides a "Designated Territory" to franchisees, within which the franchisor agrees not to operate or grant anyone else the right to operate a similar business under the franchisor's trademarks during the term of the franchise, provided the franchisee is not in default. This designated territory offers a level of territorial protection. However, the franchisor's restrictions do not prevent it or its affiliates from engaging in certain activities not specifically set forth in the restrictions.

For example, the franchisor or its affiliates can operate or allow others to operate similar or identical businesses within the designated territory in self-contained areas serving a restricted or limited population (like corporate campuses or hospitals), provide in-home counseling and therapy products and services, or operate similar businesses outside the designated territory, among other exceptions​​​​.

While franchisees under an Area Development Agreement will not receive an exclusive territory and may face competition from other franchisees or outlets owned by the franchisor, their territorial rights in the Development Territory are protected during the term of the agreement, provided they comply with the development schedule and other agreement terms​​​​.

The franchisee is responsible for the day-to-day operation of the Franchised Business, which includes:

• Hiring, setting the conditions of employment, supervising, disciplining, and terminating all personnel.
• Purchasing (or leasing) and maintaining equipment and supplies.
• Maintaining employment records.
• Daily maintenance, safety, security, and ensuring compliance with the System of Operation.
• Provision of health or medical products and services and the exercise of medical judgment.

Franchisees must handle all administrative functions at the Franchised Business, including payroll and providing workers' compensation insurance. The franchisor's rights to approve certain matters, inspect the Franchised Business and its operations, and enforce its rights exist only to protect its interest in the System of Operation and the Names and Marks