Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 8
You must use our approved vendors that may provide accounting services, payroll services, and technology for your Franchised Business.
From the filings
+6.25% units YoYMandated tech stackHQ-led decisions
Ellie Mental Health
Health servicesEllie Mental Health's franchise agreement puts core software under corporate control: Item 11 requires franchisor-run EHR Systems and at least one digital sign-in software license from an approved vendor, on hardware Ellie specifies at every location. The system spans 255 clinics, all franchised, with franchised outlets up 6.25% year over year.
For software vendors selling into US franchise brands.
Live signals
Total units
255
255 franchised
Unit growth YoY
+6.25%
vs prior filing
AUV
$666K
Item 19, 2025
Royalty
7.5%
of gross sales
Ad fund
—
national + local
Initial fee
$60K
per unit
Investment range
$392K–$680K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
7.5%+of gross sales (FY2025)
15% reference
Franchisor behaviours
What the franchisor requires
22 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Franchisor shall have independent access to all of Franchisee’s computer systems, excluding any employment records and, except as provided in FA (04/2025, amended 08/2025) 17 Section 19(e)(6), medical records containing personal health information.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We or our affiliates are also the sole approved supplier of training.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Nothing in this Agreement limits the frequency or cost of future changes to the System of Operation that Franchisor may require.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
10656506Item 8
In our fiscal year ended December 31, 2024, we received $10,656,506 in revenues from the sales or leases of required goods and services to our franchisees, or about 49.5% of our total revenues of $21,532,207.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
Our supplier for revenue cycle management and contracting and credentialing currently pays us up to 0.19% (depending on total sales volume) of the revenue received by the supplier from purchases by our franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
65Item 8
Once you begin operating, FDD (04/2025, amended 08/2025) 27 you can expect that these required purchases and leases you make will represent between 65% and 85% of the total purchases and leases you will make to operate your Franchised Business.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You may request to opt out of certain shared services and retain your own approved vendor for these services, if you meet our requirements and receive prior written approval from us.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee acknowledges that, as between Franchisor and Franchisee, Franchisor has the sole right to and interest in all telephone numbers, directory listings, domain names profiles, user names, and accounts associated with the Names and Marks
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisee shall permit Franchisor and its representatives, whenever Franchisor reasonably may deem necessary, during normal business hours, to enter, remain on, and inspect the Franchised Business.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor, from time to time, may add to or modify some or all of the Confidential Manual(s) to supplement or to improve the System of Operation and the contents and methods of promotion franchised hereunder and Franchisee shall at all times maintain the updated Confidential Manual(s).
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must operate your Franchised Business from 1 location we approve (Franchise Agreement – Section 3).
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee may not offer, promote, or sell any products or services or make use of any of Franchisor’s Names and Marks, the Franchised Business, or the System of Operation, via any Social Media Presence without Franchisor’s prior written approval.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
Once your Franchised Business opens, and in addition to the Marketing Fee, you must spend at least $50 per each Qualified Clinician and Qualified Prescriber in the prior calendar month on approved local marketing activities (Franchise Agreement – Section 6(c)).
Operations
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
If Franchisor designates a specific supplier for any items, Franchisee must purchase the items from the specific, designated supplier.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
You must pay fees and other amounts due to us via electronic funds transfer or other similar means.
Must the franchisee participate in a gift card program?
YesItem 16
You must also participate in all gift card, gift certificate, and other promotional programs we establish.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee shall employ at least one (1) Licensed Provider to serve as the full-time clinic director responsible for the general operation of the Franchised Business (“Clinic Director”) and who must meet Franchisor’s minimum qualifications.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You will use the computers for point of sale and to send invoices, perform accounting functions, process payments, complete forms and reporting, maintain financial information, produce daily reports, email correspondence with clients, us, and others, and access the computer software we require for the Franchised…
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Franchisor shall have independent access to all of Franchisee’s computer systems, excluding any employment records and, except as provided in FA (04/2025, amended 08/2025) 17 Section 19(e)(6), medical records containing personal health information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
We may also provide mandatory additional training if we feel you or your staff are not meeting our standards, at any time.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
If we host annual or biannual conferences ("Annual National Conference”) for our franchisees, you must attend each Annual National Conference.
The filing answers no to 5 questions
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?Franchise agreement
- Is a minimum grand opening advertising spend required?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Must the franchisee buy products from a designated distributor?Franchise agreement
The vendor opportunity at Ellie Mental Health
Ellie Mental Health operates 255 clinics, all franchised, with franchised outlets up 6.25% year over year. Item 19 of the FDD includes a financial performance representation. The mapped operator base is entirely single-unit today, with none of the 27 mapped operators running more than one clinic — a signal that HQ-level technology decisions carry directly to the front line rather than through large multi-unit operator groups.
Who controls software purchasing
Ellie Mental Health's corporate office controls the core software stack for its clinics. CEO Michael DiMarco and COO Emily Undajon lead that decision, and Ellie requires franchisees to obtain its EHR Systems, contract, credentialing, and billing services from Ellie or its affiliates rather than choosing their own. Ellie Mental Health operates under holding entity EMH PEP HoldCo.
Tech named in the FDD, and what is actually required
Each clinic must purchase and use at least one personal computer per Licensed Provider, one printer with scanning and faxing capability, and one tablet for a front-desk self-serve digital sign-in kiosk. Those computers run point-of-sale, invoicing, accounting, payment, reporting, and email functions, and must contain the software Ellie requires or have access to it. Franchisees must obtain at least one digital sign-in software license from Ellie's approved vendor, and Ellie's EHR Systems are a required purchase from Ellie or its affiliates. Technology services provided through Ellie currently include its EHR System (including telehealth), Microsoft Office 365, a virtual front desk license, and Absorb.
Procurement, renewals, and timing
Item 8 runs on an approved-supplier list. Franchisees must buy the Onboarding Package, EHR Systems, and contract, credentialing, and billing services only from Ellie or its affiliates, along with certain branded items and training; Ellie's approved vendors also supply accounting, payroll, and related technology services. Franchisees may propose a supplier for approval. The initial term runs 10 years, with a further 10-year renewal for franchisees in good standing. Franchised outlets grew 6.25% year over year, adding new-clinic technology setups on top of that renewal cadence.
How to read the Ellie Mental Health FDD
The embedded viewer below carries Ellie Mental Health's 2025 Franchise Disclosure Document in full, including the Item 11 technology and Item 8 supplier-restriction language summarized above.
Talk to FranCloud for a ranked list of franchise systems like Ellie Mental Health where the technology mandate and growth curve line up with your product.
Questions vendors ask
Ellie Mental Health, answered from the filing
Ellie Mental Health's corporate office in Minnesota requires EHR Systems from itself or its affiliates and approves the vendor for digital sign-in software. CEO Michael DiMarco and COO Emily Undajon sit atop that decision, with VP of Operational Excellence Jesse Leuer close to day-to-day systems.
Item 11 requires at least one personal computer per Licensed Provider, a printer with scanning and faxing, and a tablet for a front-desk self-serve digital sign-in kiosk, running the software Ellie requires — including its EHR Systems and at least one digital sign-in software license from Ellie's approved vendor. Required services also include Microsoft Office 365 and Absorb.
255 total units, all 255 franchised and none company-owned, in the health-services segment.
Item 8 runs on an approved-supplier list: franchisees must buy the Onboarding Package, EHR Systems, and contract, credentialing, and billing services only from Ellie or its affiliates, plus certain branded items and training. Franchisees may propose a supplier for approval.
The initial term runs 10 years, with a further 10-year renewal available to franchisees in good standing who sign the then-current Franchise Agreement, update their equipment, and pay the renewal fee. Franchised outlets grew 6.25% year over year.
The embedded PDF viewer below carries Ellie Mental Health's 2025 Franchise Disclosure Document.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Ellie Mental Health files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
27 operators run 27 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit27
Top states by locations
| NY | 3 |
|---|---|
| MD | 1 |
| MO | 1 |
| WV | 1 |
Ownership
The portfolio behind Ellie Mental Health
unknown of emh pep holdco.
Related Health services brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.