Any Lab Test Now

## Executive Summary

Any Lab Test Now is a direct access lab testing franchise founded in 1992 and franchising since 2007. As the largest retail lab testing franchise with 200+ locations, it offers consumers direct access to lab tests without physician prescriptions. While the company has earned recognition including a 77 franchisee satisfaction score and multiple industry awards, a $10M+ fraud lawsuit by seven franchisees alleging misrepresentation raises serious concerns that require careful due diligence.

## The Business

**Core Services:** - Direct-to-consumer lab testing (no prescription required for many tests) - Drug and alcohol testing - DNA testing - Wellness screenings - Nutritional injections - Employer testing services - Specimen collection

**Value Proposition:** Accessible and affordable lab testing directly to consumers and employers without traditional doctor prescription requirements.

**History:** - 1992: Founded by David Lageschulte - 2007: Began franchising

**Headquarters:** Alpharetta, Georgia

**System Size:** 207-221 franchised locations across the USA

## The Numbers

**Initial Investment:** $133,900 - $298,400 (ranges vary by source)

**Franchise Fee:** $40,000 - $54,500

**Royalty Fee:** 7-8% of gross revenue (minimum $500/month)

**Marketing Fee:** 2% of gross revenue (may increase to 3%)

**Net Worth Requirement:** $300,000

**Liquid Capital Requirement:** $90,000

**Financial Performance:** - Average Yearly Gross Sales: $257,879 - $339,000 (varies by source) - Estimated Owner Earnings: $38,682 - $51,576 - Payback Period: 5.7 - 7.7 years

**Recognition:** - Entrepreneur Franchise 500 (#397 in 2024) - Franchise Times Top 400 - Franchise Business Review Franchisee Satisfaction Award - Top Multi-Unit Franchise - Top Recession-Proof Franchise

## System Health

**Positive Indicators:** - Largest retail lab testing franchise (200+ locations) - 77 franchisee satisfaction index score (Franchise Business Review) - Multiple industry awards and rankings - Low staffing requirements (1-2 employees first year) - Low inventory requirements - Veteran discount (10% on franchise fee) - High-demand health services industry - Diversified revenue streams (multiple test types)

**Serious Concerns:** - $10M+ fraud lawsuit by seven franchisees - Allegations of misrepresentation in franchise sales - Claims of unrealistic break-even projections - Some franchisees reported significant financial losses - Consumer BBB complaints about unreported tests

## Franchisee Experience

**Training and Support:** - One week New Franchisee Training at Alpharetta, GA headquarters - Training covers business, operations, lab tests, compliance, customer experience, marketing, sales - Training Portal for ongoing education - On-site support after Grand Opening - Webinars, regional meetings, and franchisee conferences - Detailed operations manual

**Success Story:** Allison Kapalka, a franchise sales consultant who bought her own location in 2007: The way we overcame this hurdle was to work with the local medical community to inform their patients about us. Corporate support from the brand has always been a constant.

**Staffing Model:** - Owner and first medical assistant attend training - Only 1-2 employees needed during first year - Minimal inventory requirements

## Risk Assessment

**MAJOR LITIGATION - $10M+ Fraud Lawsuit:**

In June 2011, seven present and former franchisees filed suit in Miami Circuit Court against founder David Lageschulte and Any Test Franchising, Inc. seeking over $10 million for fraudulent conduct.

**Key Allegations:** - Extensive, unsupported, unsubstantiated and misleading representations of gross revenues, expenses and profits - False claims about proven business system - False representation that franchisees could operate as absentee owners - Misleading break-even projection of $8,000/month when realistic figure was $25,600/month

**Franchisee Losses:** - Plaintiff Baumann reported actual break-even around $18,000/month, lost $26,000 on two stores in 2010 - Bob Deese lost more than $500,000 in two years before closing his Pennsylvania location in 2010

**Trademark Enforcement Litigation:** Any Test Franchising sued former franchisees for continuing to use trademarks after agreements expired, including trademark infringement, unfair competition, and breach of contract claims.

**Non-Compete Challenges:** Two franchisees (Baumann and Fernandez) successfully challenged non-compete covenants under Georgia law and opened competing business Unilab Express.

**Consumer Complaints:** BBB complaints include customers paying for tests that were never performed, with difficulty obtaining refunds.

**Key Risks:**

1. **Historical Fraud Allegations:** The 2011 lawsuit raised serious questions about franchise sales representations.

2. **Break-Even Uncertainty:** Significant discrepancy between presented ($8K) and actual (~$18-25K) break-even figures.

3. **Franchisee Financial Losses:** Documented cases of substantial losses ($26K to $500K+).

4. **Consumer Service Issues:** BBB complaints about unreported tests suggest operational problems at some locations.

5. **Healthcare Regulatory Environment:** Lab testing subject to state-by-state regulations.

## Competitive Position

**Market Position:** Largest retail lab testing franchise with most prominent store locations nationwide.

**Investment Comparison:** - Any Lab Test Now: $133,900 - $298,400 (7-8% royalty) - ARCpoint Labs: $199,000 - $380,000 (7% royalty) - Fastest Labs: $101,000 - $133,000 (7% royalty) - 10X Health System: $216,000 - $523,000 (12% royalty)

**Competitive Advantages:** - Largest franchise network in category - Most established brand recognition - Diversified service offerings (not just one test type) - Low staffing and inventory requirements - Strong franchisee satisfaction scores (77)

**Competitive Disadvantages:** - Historical litigation concerns - Higher investment than some competitors (Fastest Labs) - Some regions may have mature market saturation

**Primary Competitors:** - ARCpoint Labs (124 units, since 2005) - Fastest Labs (91 units, since 2010) - 10X Health System (newer, since 2022) - Independent lab testing facilities

## Validation Questions for Prospective Franchisees

1. What changes were made to the FDD and sales process after the 2011 fraud lawsuit? 2. What is the current realistic break-even point for new franchisees? 3. Can I speak with franchisees who opened after 2015 about their financial experience? 4. What percentage of franchisees are profitable within 2 years? 5. How has the company addressed the historical franchise sales concerns? 6. What support is provided for building relationships with local medical community? 7. What are the actual revenue and profit figures from Item 19? 8. How many franchises have closed or transferred in the past 5 years?

## Data Gaps

- Current lawsuit resolution status not fully documented - Post-2011 changes to franchise sales practices not detailed publicly - Recent franchisee closure and transfer rates not available - Regional performance variations unknown - Item 19 breakdown by location age not public - Healthcare regulatory compliance across states not detailed - Consumer complaint resolution rates not tracked

## Verdict: CAUTIOUS

**Rating Rationale:**

Any Lab Test Now offers a compelling concept in a growing healthcare services market. The company has the largest network, strong franchisee satisfaction scores (77), and multiple industry recognitions. The low staffing requirements and diversified service offerings create an attractive operating model.

However, the 2011 $10M+ fraud lawsuit by seven franchisees cannot be ignored. The specific allegations of misrepresented break-even figures ($8K vs. $18-25K actual) and documented franchisee losses of up to $500K+ represent serious red flags. While the lawsuit is over a decade old and the company has continued operating and growing, prospective franchisees must thoroughly validate that sales practices have changed.

**Recommended For:** - Candidates who thoroughly validate current financial projections vs. actual performance - Those with healthcare or medical services background - Operators who can independently verify all earnings claims - Buyers who speak with both successful AND unsuccessful franchisees

**Not Recommended For:** - First-time franchise buyers without extensive due diligence capabilities - Those relying solely on franchisor-provided financial projections - Candidates unable to absorb potential losses if projections prove inaccurate - Risk-averse investors concerned about historical litigation

**Bottom Line:** Any Lab Test Now has market leadership and franchise satisfaction awards, but the historical fraud lawsuit raises questions that require extensive independent validation. Do not rely solely on franchisor projections. Speak with multiple franchisees about actual financial performance and verify all break-even calculations independently before committing.