Wellness Franchise Restore Attracts Investment From Level 5 Capital
Hyperbaric oxygen therapy is one of the services Restore offers at its wellness centers.
As it seeks to accelerate what CEO Jim Donnelly called “the democratization of hyper wellness,” Restore Hyper Wellness + Cryotherapy attracted a new strategic growth investment from Level 5 Capital Partners.
The $8 million investment will help Austin-based Restore quicken the pace of its franchise growth, open more corporate locations, bolster research and development, and integrate new technology, said Donnelly, who co-founded Restore with Steve Welch in 2015. Restore has 50 locations, 10 of them company-owned, in 24 states.
“The world has continued to scream from the hilltops that everything associated with Restore needed to be built out as fast as possible,” said Donnelly, in reference to growing consumer interest in health and wellness services. “This is the business to be in.”
Chris Kenny, managing partner at Atlanta-based Level 5, agreed and said his firm brings more to the table than just money. “Our whole background is in health and wellness and personal services and fitness,” he said of the group that’s also a multi-unit franchisee of CorePower Yoga and Orangetheory Fitness, and is the majority owner of franchisor Big Blue Swim School.
“We’ll leverage our experience and our mistakes, frankly,” continued Kenny, who as part of the transaction will join Restore’s board of directors. Lessons learned include the need to “really be hyper vigilant on real estate,” and to use technology to connect with customers “but not handing over your road map to a third party.”
Whole body cryotherapy and IV drip therapies, with names such as “Superman,” “Radiant” and “Immunity Booster,” are among Restore’s most popular services. Hyperbaric oxygen therapy, assisted stretching, infrared sauna therapy and compression therapy are also on the menu and part of that aforementioned hyper wellness approach that Donnelly said appeals to people in need of chronic pain management or those seeking improved athletic performance.
“We said very early on we wanted to create a new version of wellness,” said Donnelly, pictured below. “Everything we do is science and medically backed … it’s not wishy-washy stuff.”
Donnelly, whose background is in building tech and software companies, emphasized the need to “bring more substance to the wellness space” via data, an effort he added is supported by the Level 5 investment. Restore’s wellness platform will integrate data across clients’ health and activity tracking devices, their usage of Restore therapies, and results from its various medical tests. “We’ll be much more outcome based” said Donnelly.
The company also opened a research and development facility, Restore Labs, in March.
On the franchise development side, Donnelly said Restore plans to make “some pretty big people investments” to support franchisee growth with a focus on profitability. Having Level 5 as an investor, he noted, “adds credibility for Restore” and provides additional validation for franchisees.
With 80 percent of its customers coming in because of a chronic pain condition, and because of its medical infrastructure, many states designated Restore as an “essential business,” noted Donnelly, allowing most of its locations to remain open during the COVID-19 pandemic.
“We will have a record month this month,” he said. “It doesn’t feel like we’re in the middle of a pandemic.”
Item 19 of Restore’s franchise disclosure document reported average annual total sales of $415,485 for eight franchise locations in 2018. The investment range for Restore is $373,700 to $596,500, including a franchise fee of $39,500.