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Breakdown

Nowlogy Clinic franchise unit economics

Nowlogy Clinic franchisees run outpatient counseling and therapy clinics staffed by licensed psychologists and prescribers, billing counseling, therapy and medication management to insurers and private-pay patients.

Franchised clinics, end of 20252

Initial fee$40,000

Total investment$71,200–$262,100

Royalty7.5% of sales

Nowlogy Clinic franchise at a glance

Nowlogy Clinic’s 2026 FDD, issued 15 July 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Nowlogy Clinic franchise costs $71,200 to $262,100 to open, including the $40,000 initial franchise fee.

A Nowlogy Clinic conversion of an existing outpatient mental health clinic costs $36,500 to $157,100 to open, with a $20,000 conversion fee.
Nowlogy Clinic charges a system fee of 7.5% of collected revenue with a minimum of $4,000 a month, which is $48,000 a year*.
Nowlogy Clinic also charges a Shared Services Fee of 7.5% of collected revenue, and Item 6 says opting out of shared services does not change the fee.
Nowlogy Clinic sets brand fund, local advertising and technology charges per clinician and per prescriber: $5,400 a year for each clinician and $8,100 for each prescriber*.
Nowlogy Clinic had 2 franchised clinics and 6 clinics owned by its affiliate at December 31, 2025.

These figures come from Nowlogy Clinic's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The $48,000 a year (4,000 x 12), the $5,400 and $8,100 a year per clinician and per prescriber (monthly charges x 12) are Averan calculations.

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By Scott Engler · Averan Advisors · Source: Nowlogy Franchising, LLC, 2026 Franchise Disclosure Document (FDD) · Updated 16 October 2026

Item 19 contains no financial performance representation. The franchisor states that it does not make representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets. A buyer of an existing clinic may be given that clinic’s actual records.
The system fee is 7.5% of collected revenue with a minimum of $4,000 a month. That minimum is $48,000 a year*. At 7.5%, the percentage exceeds the minimum once collected revenue passes $53,333 a month*, or $640,000 a year*. The fee starts in the month after the first full month of operation.
A separate Shared Services Fee is another 7.5% of collected revenue. It pays for a call center with lead routing, billing and insurance verification, first appointment scheduling and credentialing maintenance. A franchisee may ask to opt out of certain shared services and use its own approved vendor, and the fee stays the same. The two fees together are 15%* of collected revenue.
Three monthly charges are set per clinician and per prescriber. Brand fund $100, local advertising $125, and technology $225 a clinician or $450 a prescriber: $5,400 a year a clinician and $8,100 a prescriber*. Item 6 counts a clinician who works part-time, for part of a month, or as an independent contractor as one Qualified Clinician.
Of 8 clinics at the end of 2025, 6 were owned by the franchisor’s affiliate and 2 were franchised. A footnote to Item 20 says the 2 franchised units became franchisees of the franchisor effective August 18, 2025. Item 6 says clinics owned by the franchisor or its affiliates are not required to contribute to the Brand Fund.

Per clinician

Charges per clinician and prescriber

Monthly charges set per head, and the yearly total, Averan calculation *Averan calculation
Charge	A clinician, a month	A prescriber, a month	A clinician, a year	A prescriber, a year
Brand Fund Contribution	$100	$100	$1,200*	$1,200*
Local Advertising Requirement, spent by the owner	$125	$125	$1,500*	$1,500*
Technology Fee	$225	$450	$2,700*	$5,400*
Total	$450*	$675*	$5,400*	$8,100*

Source: Nowlogy Clinic 2026 FDD, Item 6. The system fee and the Shared Services Fee are charged in addition, at 7.5% of collected revenue each.

Each clinician or prescriber who works at the clinic in a month counts as one. Item 6 defines a Qualified Clinician and a Qualified Prescriber to include people working part-time or full-time, for a full or partial month, as employees or independent contractors. Someone who works at more than one of the same owner’s clinics is allocated pro rata by approximate hours, or to one clinic, as the franchisor decides.

The franchisor may raise these charges. The Technology Fee may rise on 30 days’ notice to no more than $400 a month a clinician and $800 a prescriber. Item 6 allows yearly increases to the Brand Fund Contribution and the Local Advertising Requirement, stated as not to exceed $25 a month per head, and unused increases may be taken in a later year.

The local advertising amount is spent by the owner, not paid to the franchisor. The franchisee pays it to third parties and submits evidence each quarter. Any shortfall may have to be paid into the Brand Fund.

A clinic offering medication management needs at least 1 medical assistant for each Qualified Prescriber. Item 1 says the assistant must work the same number of hours each week as the prescriber.

Each new provider also costs a credentialing fee. Item 5 sets it at $1,000 a provider for 5 payors and $1,000 for each additional payor, paid before the work and nonrefundable whether or not approvals are obtained. A provider credentialed with 8 payors would cost $4,000*.

Brand charges

Nowlogy Clinic recurring and event fees, Item 6 *Averan calculation
Charge	Amount	A year, where fixed
Qualified Clinician System Fee	7.5% of collected revenue, minimum $4,000 a month	$48,000 at the minimum*
Shared Services Fee	7.5% of collected revenue; unchanged if the franchisee opts out of services	Not fixed
Brand Fund Contribution	$100 a month per clinician and per prescriber	$1,200 a head*
Local Advertising Requirement	$125 a month per clinician and per prescriber, spent locally	$1,500 a head*
Technology Fee	$225 a month per clinician, $450 per prescriber	$2,700 or $5,400 a head*
Management Fee	7.5% of collected revenue, only while the franchisor operates the clinic	Not fixed
Contract services	$1,000 a payor beyond the first 5 at the first clinic; $750 a payor at later clinics	As incurred
Credentialing services	$1,000 a provider for 5 payors, $1,000 each additional payor	As incurred
Renewal	$10,000	At renewal
Transfer	50% of the current initial fee to an existing franchisee, 75% outside the system, $1,500 for a non-controlling change	At transfer
Relocation	$2,500 or the franchisor’s costs, whichever is greater	At relocation

Source: Nowlogy Clinic 2026 FDD, Items 5 and 6, and Franchise Agreement Section 5.4. The FDD has no Item 19, so Averan cannot express the fees as a share of an average clinic’s revenue.

The two 7.5% fees together take 15%* of collected revenue. The system fee is for use of the marks, intellectual property and system. The Shared Services Fee is for administrative services. Item 6 says a franchisee may request to opt out of certain shared services and keep its own approved vendor, and that the fee remains due in full.

Below $640,000 of collected revenue a year*, the system fee is the $4,000 monthly minimum. The minimum is $48,000 a year*. Section 5.4 of the Franchise Agreement states the fee as 7.5% of the collected revenue of each Qualified Clinician and Qualified Prescriber, with at least a minimum of $4,000 per month.

The Management Fee applies only if the franchisor steps in. It may manage the clinic if a default is not cured, or on the owner’s death, disability or prolonged absence. During that period all other recurring fees stay payable.

The $40,000 initial fee includes a $10,000 onboarding package. The package covers outreach, billing and technology set-up, and contracting with up to 5 payors. Training for the Operating Partner and Clinic Director is included; each additional attendee is $1,500.

Cost to open

Estimated initial investment, standard franchise, Item 7
Item	Low	High
Initial franchise fee	$40,000	$40,000
Interior design and leasehold improvements	$2,500	$50,000
Furniture and fixtures	$10,000	$50,000
EHR system, software and computers	$3,000	$29,600
Professional fees	$2,500	$20,000
Signage, interior and exterior	$2,500	$5,000
Training expenses	$2,500	$5,000
Grand opening marketing	$1,000	$5,000
Business insurance	$1,000	$3,000
Business licenses and permits	$200	$3,000
Utility and security deposits	$1,000	$1,500
Additional funds, 3 months	$5,000	$50,000
Total	$71,200	$262,100

Source: Nowlogy Clinic 2026 FDD, Item 7, table A. The estimate is for a leased space of 1,200 to 1,500 square feet with 4 to 8 therapy rooms and excludes payroll costs.

The $40,000 initial fee is 56.2%* of the low estimate and 15.3%* of the high. The franchisor does not finance any part of the investment.

Converting an existing outpatient mental health clinic costs $36,500 to $157,100. The conversion fee is $20,000, and Item 7 table B lowers the estimates for leasehold improvements, furniture and fixtures, deposits, signage and permits. The recurring fees in Item 6 are the same.

Item 5 lists other initial fee prices. A second or later clinic gets a 25% reduction of the then-current fee, $30,000 on the current fee*. Under a loyalty program the fee is $10,000 for someone who has worked for the franchisor’s affiliate for at least 24 uninterrupted months, has 5 years in psychology, and will open where the franchisor chooses.

Item 11 puts the typical time from signing to opening at 1 to 3 months for a standard clinic. A conversion typically takes 1 to 6 months, and the agreement requires opening within 6 months of signing.

The territory is generally a radius of about 15 miles in a rural or suburban area. In a dense urban area it may be a 5 block radius. Item 12 says the franchisor sets the territory and that no minimum size is guaranteed.

Locations

Locations, 2023 to 2025

Nowlogy clinics, Item 20
Year	Franchised, opened	Franchised, end	Affiliate-owned, start	Affiliate-owned, opened	Affiliate-owned, sold to franchisee	Affiliate-owned, end	Total, end
2023	0	0	2	1	0	3	3
2024	0	0	3	1	0	4	4
2025	2	2	4	3	1	6	8

Source: Nowlogy Clinic 2026 FDD, Item 20, Tables 1, 3 and 4. The affiliate-owned clinics are owned by Psychology Express, Inc.

Both franchised clinics are in Minnesota. Exhibit C lists franchisees in Northfield and Hastings. A footnote to Item 20 says these units became franchisees of the franchisor effective August 18, 2025.

No franchised clinic was terminated, not renewed, reacquired, closed or transferred in 2023 to 2025. Exhibit D lists no former franchisees.

The affiliate’s clinics are in Minnesota and Texas. Item 1 lists clinics in Woodbury, Burnsville, Cypress, St. Paul, Houston and Edina, with Edina dated January 1, 2026.

No franchise agreement was signed but not opened at the end of 2025. The franchisor projects 5 new franchised clinics and 7 new affiliate-owned clinics in the next fiscal year.

Questions we get asked

Questions owners ask

How much does a Nowlogy Clinic franchise make?

How much does it cost to open a Nowlogy Clinic franchise?

Item 7 estimates $71,200 to $262,100 for a standard clinic, including the $40,000 initial franchise fee and $5,000 to $50,000 of additional funds for 3 months. Converting an existing outpatient mental health clinic is estimated at $36,500 to $157,100, with a $20,000 fee.

What fees does Nowlogy Clinic charge?

A system fee of 7.5% of collected revenue with a $4,000 monthly minimum, and a Shared Services Fee of 7.5% of collected revenue. Each clinician also carries $100 a month of brand fund, $125 of local advertising and $225 of technology charges, $450 a month in all*; the technology charge for a prescriber is $450.

What is the average revenue of a Nowlogy Clinic?

The FDD does not say. Item 19 makes no financial performance representation, so there is no average, median or profit figure for any clinic.

How many Nowlogy clinics are there?

Item 20 shows 8 clinics at December 31, 2025: 2 franchised, both in Minnesota, and 6 owned by the franchisor’s affiliate. No franchise agreements were signed but not opened at that date.

Can a franchisee avoid the Shared Services Fee by opting out?

No. Item 6 says a franchisee may request to opt out of certain shared services and use its own approved vendor, and the Shared Services Fee remains unchanged and payable in full.

What does credentialing a new provider cost?

Item 5 sets the credentialing fee at $1,000 a provider for 5 payors and $1,000 for each additional payor. The fees are paid in advance and are nonrefundable whether or not approvals are obtained.

Questions worth putting to Nowlogy Clinic

These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.

Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
Which factors does Nowlogy Clinic see in its highest-selling locations, such as territory, years open and staffing?
How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
At what level of sales do the minimum charges stop applying and the percentage take over?
How many Nowlogy Clinic locations closed, were sold, or changed hands last year, and why?

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Where this sits

the franchise library, all 431 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners

Questions owners ask next

The figures above raise these, and each one is answered on its own page.

At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.

Scott Engler

Founder & Principal, Averan Advisors

Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team. More about the team →

Where these figures come from

Every figure here comes from Nowlogy Franchising, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Nowlogy Clinic is a trademark of its owner. How Averan reads a Franchise Disclosure Document.

These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Nowlogy Franchising, LLC, 2026 Franchise Disclosure Document, issued 15 July 2026.