Fastest Labs

## Executive Summary

Fastest Labs has emerged as the fastest-growing drug, alcohol, and DNA testing franchise, expanding to 229 locations with 250+ prime markets still available. The low investment ($131,000-$200,000), no medical experience requirement, and high-margin business model appeal to business-focused entrepreneurs. Strong franchisee satisfaction (Franchise Culture100 award winner) and multi-unit expansion by existing owners validate the opportunity. However, reported financials show modest unit economics ($105,000 average gross sales, 10-12 year payback), which warrants careful validation against the competitive threat from the newly merged ARCpoint/Any Lab Test Now entity that now dominates the category.

## The Business

Fastest Labs operates retail drug, alcohol, and DNA testing centers serving businesses, individuals, and legal/government entities. The value proposition centers on speed - tests completed in minutes with rapid results versus hours or days at traditional labs or medical clinics.

Services include pre-employment drug screening, random and post-accident testing, paternity/DNA testing, and other specimen collection services. Revenue comes primarily from B2B relationships with employers, staffing agencies, and contractors requiring ongoing testing programs.

The franchise model requires no medical experience or clinical background, with comprehensive training covering sales, operations, and testing procedures. Tests cost $40-$49 for consumers, with B2B contracts generating recurring revenue.

## The Numbers

**Initial Investment:** $131,000 - $200,000

**Franchise Fee:** $59,500

**Royalty:** 7% of gross sales

**Financial Requirements:** - $50,000-$75,000 liquid capital - Strong networking and business development skills

**Item 19 Performance:** - Average Gross Sales: $105,449 - Estimated Earnings: $14,763 - $18,981 - Payback Period: 10.3 - 12.3 years

Note: The payback period suggests modest unit economics that warrant validation. Actual performance may vary significantly based on B2B account acquisition success.

## System Health

Fastest Labs has demonstrated impressive growth since founding in 2008 and franchising in 2010:

**Current Metrics:** - 228 franchised locations + 1 company-owned = 229 total - 237 locations open with 250+ prime markets available - Headquarters: San Antonio, Texas - Entrepreneur Franchise 500: #488 (2025), #1 in category (2022)

**Geographic Footprint:** - Strongest presence in Texas - Secondary hubs in Virginia, Maryland, Florida, North Carolina - Expansion opportunities in Midwest and Western states

Multi-unit expansion by existing franchisees in California, Texas, and Washington validates the model and signals franchisee confidence.

## Franchisee Experience

The franchise has built a strong culture, earning inclusion in the 2021 Franchise Culture100 Awards based on leadership, core values, integrity, and support metrics.

Franchisee testimonials highlight: - Turnkey business model with comprehensive training (3 weeks at HQ) - No medical skills required; all training provided - Rapid implementation of business systems - Strong coaching and ongoing support - Technology adoption and innovation support

Notable franchisee stories: - First franchisee (2011) transitioned from insurance, values independence with corporate support - Veteran franchisee Dave George praised training and technology, expanded from 2 to 4 locations - Early national expansion franchisee cited excellent coaching and franchise support

The Franchise Support Initiative 12 (FSI XII) program rolls out monthly support tools and initiatives.

## Risk Assessment

The FDD reportedly does not disclose lawsuits or bankruptcy information, though prospective franchisees should review full FDD terms.

Key risks include:

**Competitive Consolidation:** - August 2024: ARCpoint Labs and Any Lab Test Now merged into CRESSO Brands, creating the largest franchise direct access lab testing group in the U.S. - Combined entity has 365+ locations versus Fastest Labs 229 - Increased competitive pressure from better-capitalized combined competitor

**Modest Unit Economics:** - $105,000 average gross sales appears low for 10+ year payback - Earnings estimates of $15,000-$19,000 suggest thin margins - Success heavily dependent on B2B account development

**Business Development Dependency:** - Revenue growth requires active sales/networking effort - Not a passive investment; requires ongoing business development - Market saturation risk in mature territories

**Economic Sensitivity:** - Drug testing demand correlates with employment levels - Economic downturns reduce hiring and associated testing volume - B2B client concentration risk if major accounts lost

## Competitive Position

Fastest Labs competes in the $7 billion lab testing industry against:

**Franchise Competitors:** - Any Lab Test Now: 235+ locations, 70.5% ownership of CRESSO Brands - ARCpoint Labs: 130+ locations, 29.5% ownership of CRESSO Brands

**Non-Franchise Competitors:** - Quest Diagnostics: Largest lab chain in U.S. - LabCorp: Major national competitor - Medical clinics and urgent care centers

**Competitive Comparison:**

| Factor | Fastest Labs | Any Lab Test Now | ARCpoint Labs | |--------|-------------|------------------|---------------| | Investment | $131K-$200K | $42K-$238K | $199K-$380K | | Franchise Fee | $59,500 | $40,000 | $54,500 | | Royalty | 7% | 8% | 7% | | Units | 229 | 235+ | 130+ |

Fastest Labs differentiates on speed - tests completed in minutes versus 45+ minutes at competitors. This speed advantage appeals to time-sensitive business clients.

## Validation Questions

1. What is your actual gross revenue and net profit compared to the system averages? 2. How long did it take to build a sustainable B2B client base? 3. What percentage of your revenue comes from recurring B2B contracts versus walk-in consumers? 4. How has the ARCpoint/Any Lab Test Now merger affected competition in your market? 5. What are your actual operating costs, and how do they compare to the FDD estimates? 6. How effective is corporate support in business development and marketing? 7. What is your client retention rate for B2B accounts?

## Data Gaps

- Reconciliation of reported modest financials versus strong franchisee expansion patterns - Impact of CRESSO Brands merger on competitive dynamics - Client acquisition costs and sales cycle length - Geographic performance variation by market type - Revenue breakdown between B2B and consumer segments - Actual profit margins versus estimated earnings range