Dallas-based franchisor and multi-unit investor Princeton Equity Group has made a significant, though undisclosed, investment in Ellie Mental Health, a rapidly growing outpatient mental health clinic operator and franchisor based in Mendota Heights, Minnesota. This infusion of capital will support Ellie Mental Health’s ambitious plans to expand its network of both company-owned and franchised outpatient mental health clinics across the United States, driving the company’s mental health franchise expansion to new heights.
Expanding Access to Mental Health Services
Ellie Mental Health currently operates 20 outpatient clinics, with 16 located in Minnesota. These clinics are staffed by approximately 215 clinicians who collectively serve about 20,000 patients annually. The company’s model emphasizes high-quality, accessible outpatient mental health care, a sector experiencing significant demand amid the country’s ongoing mental health crisis.
In addition to its owned clinics, Ellie Mental Health has an impressive pipeline of over 250 franchise locations in development, spanning 26 states. This rapid franchising growth positions Ellie among the fastest-growing mental health franchise brands in the country, showcasing the power and potential of mental health franchise expansion to increase access to vital care.
The investment from Princeton Equity Group will help Ellie accelerate its clinic openings and franchise sales efforts, expanding access to mental health care for more communities. Ellie’s CEO Erin Pash emphasized the critical timing of the partnership, stating, “The partnership with Princeton will help facilitate the next chapter of our growth as we rapidly expand our corporate and franchise businesses. This investment could not have come at a more opportune time given the country’s mental health crisis and the inaccessibility of quality mental health treatment.” This statement highlights the essential role mental health franchise expansion plays in addressing the care gap nationwide.
Strong Leadership Driving Growth
Ellie Mental Health was founded in 2015 by Erin Pash and Co-founder and Chief Clinical Officer Kyle Keller. Both will continue in their leadership roles following the investment, steering the company through its next phase of growth. Their clinical and operational expertise has been instrumental in Ellie’s rapid expansion and success, which centers on strategic mental health franchise expansion.
In March 2022, Ellie Mental Health announced a milestone in its franchise development: the company sold 125 franchise units since signing its first franchise agreement in fall 2021, including 100 units sold in the first 100 days of 2022 alone. Looking ahead, Ellie plans to open 40 new franchise locations in 10 states and aims to sell an additional 300 franchise units. These ambitious goals demonstrate Ellie’s confidence in its scalable business model and the vast demand for outpatient mental health services—a clear testament to the impact of mental health franchise expansion.
Princeton Equity Group’s Role and Portfolio
Doug Kennealey, co-founder and managing partner of Princeton Equity Group, expressed enthusiasm about the partnership, commending the leadership of Erin Pash and Kyle Keller and acknowledging the growing national need for mental health care services. Kennealey said, “We are thrilled to partner with Erin and Kyle to foster continued growth at Ellie,” highlighting Princeton’s commitment to supporting franchise businesses that meet critical consumer needs through initiatives like mental health franchise expansion.
Princeton Equity Group has a track record of investing in franchise systems across various industries. Their portfolio includes well-known brands such as Massage Envy, D1 Training, and medspa810, showcasing their expertise in scaling multi-unit franchisors. This experience positions Princeton as an ideal partner to support Ellie Mental Health’s accelerated growth and continued mental health franchise expansion.
The Mental Health Franchise Landscape
Ellie Mental Health’s growth trajectory places it in strong competition and collaboration with other franchised mental health providers. For example, Thriveworks, another major player in the space, currently lists 321 locations in 42 states and Washington D.C. Thriveworks, which recently appointed a new CEO, also leverages franchising as a core component of its expansion strategy. This competitive landscape highlights the increasing relevance and opportunity of mental health franchise expansion in meeting rising demand for behavioral health services.
Looking Ahead
With Princeton Equity Group’s investment, Ellie Mental Health is well-positioned to expand its footprint rapidly, bringing more outpatient clinics online and growing its franchise base. This expansion will enhance patient access to quality mental health services at a time when demand continues to outpace supply nationwide. The partnership highlights how mental health franchise expansion is becoming an essential strategy in bridging care gaps and delivering scalable, accessible mental health treatment across the U.S.
