ChiroWay Franchise Costs $102K - $155K (2024 Stats)

INVESTMENT

$102,000

-

$155,000

LOCATIONS

12

Debbie

Updated

April 17, 2024

Is

ChiroWay

a franchise?

Yes,
ChiroWay
currently
accepts
franchise
applications

ChiroWay, a chiropractic franchise, was founded by Trent Scheidecker, DC on May 3, 2012. The franchise began its operations with the opening of ChiroWay Of Woodbury, PLLC in May 2010, with Scheidecker as the head chiropractor. The headquarters of ChiroWay Franchise is located in Woodbury, Minnesota. 

ChiroWay franchises are offered to state-licensed chiropractors and operate under a membership model, offering chiropractic services to individuals and families through monthly subscriptions and one-time visit payment options. The franchise focuses on the vitalistic philosophy of chiropractic care, emphasizing the body's innate recuperative power and the importance of the neurological system in maintaining health​​​​.

ChiroWay sets itself apart by providing regular chiropractic adjustments through affordable membership plans, allowing for convenient walk-in visits. This model aims to serve chiropractic care to promote a higher quality of life for infants, children, and adults, emphasizing the relationship between structure and function as coordinated by the neurological system​​​.

How many

ChiroWay

franchises

are there?

In 2022, there were
12
outlets in
the United
States, of which
11
are franchises, and
1
are corporate-owned.

What are the

ChiroWay

franchise

fees?

Advertising fee

2.5% to 5%

Initial Franchise Fee

The "Initial Franchise Fee" for a ChiroWay franchise is $30,000, due upon signing the Franchise Agreement. This fee is not refundable and is uniformly charged.

Continuing Fee

Franchisees are required to pay a Continuing Fee of 4.5% of Gross Revenues, subject to a Minimum Continuing Fee of $650 per month.

Marketing Fee

The Marketing Fee is currently set at 1.25% of Gross Revenues, with the franchisor reserving the right to increase it to up to 2.5%. This is in addition to a Minimum Marketing Fee of $300 per month.

Local Advertising Expenditure

Franchisees may be required to spend up to $1,000 per month per Licensed Chiropractor offering services at the Center on approved advertising in their Protected Area.

Software License Fee

The Software License Fee is also set at 1.25% of Gross Revenues, potentially increasing to up to 2.5%, with a Minimum Software License Fee of $300 per month.

Assignment Fee

Should a franchisee decide to transfer their franchise agreement or the Center, an Assignment Fee of $5,000 is applicable.

Renewal Fee

For the renewal of the Franchise Agreement, a Renewal Fee of $5,000 is required.

Relocation Fee

In the event of a relocation within the Protected Area, a Relocation Fee of up to $2,500 may be charged to cover the franchisor's expenses in considering the request.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

ChiroWay

franchise?

It costs between
$102,000
and
$155,000
to start a
ChiroWay
franchise.
Type of Expenditure Amount
Initial Franchise Fee $30,000
Leasing Costs/Security Deposit $8,000 - $12,000
Build Out of Premises $15,000 - $27,500
Promotional Materials for Initial Opening $1,500 - $2,500
Furniture and Fixtures $7,500 - $10,000
Signage $5,000 - $10,000
Equipment for Chiropractic Practice $3,500 - $5,500
Computer Hardware and Software $2,500 - $3,500
Office Supplies $500 - $1,000
Business Permits and Licenses $1,000 - $2,000
Grand Opening Initial Advertising $2,500 - $4,500
Insurance $1,000 - $3,000
Cost to Attend Training $1,000 - $2,000
Professional Fees and Services $500 - $3,000
Additional Working Capital — 3 months $22,500 - $32,500
Total $102,000 - $149,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

ChiroWay

provide

training

to its

franchisees?

Yes,
ChiroWay
provides
training

The franchisor provides a comprehensive training program for franchisees, including both the Managing Owner and all Licensed Chiropractors. 

Training Overview

This training covers various aspects of operating or managing a ChiroWay Center, including planning, marketing, sales, service, culture, corporate operations, and more. The program consists of 70 hours of classroom training and 56 hours of on-the-job training, which can be conducted electronically, at the franchisor's training center in Woodbury, Minnesota, or at the Center.

Attendees

Before the Center's opening, the franchisor requires the Managing Owner and at least one Licensed Chiropractor (if the Managing Owner is not a Licensed Chiropractor) to attend and successfully complete the initial training program. This program is provided both at a place and time designated by the franchisor and may be delivered through electronic media such as webinars or in person. If any critical staff members are deemed unqualified during any training program, the franchisor will notify the franchisee, who must then select and enroll a qualified substitute in the training program.

Ongoing Training

After the Center opens, the franchisor provides training to any new Licensed Chiropractor at the franchisee's expense. This training can also be delivered through electronic media or in person. Additionally, the franchisor may require the franchisee's Licensed Chiropractors and management-level employees to attend all designated supplemental and refresher training programs at the franchisee's cost. This includes attending the minimum number of national conferences and regional meetings as periodically required by the franchisor.

Does

ChiroWay

provides

territory

protection?

The ChiroWay franchise agreement does offer territory protection to its franchisees. According to the agreement, the franchisee is granted a "Protected Area" that is generally defined as approximately a 2-mile radius surrounding the Center location in urban or suburban areas, or a 6-mile radius in rural areas. The exact size of the Protected Area, however, is determined based on various factors including natural boundaries, demographics, and the size of the Center.

The franchise agreement specifies that, during the term of the agreement, if the franchisee is in compliance with its terms, the franchisor will not establish any other franchised or company-owned ChiroWay Center within this Protected Area, except for at "Reserved Sites" which include specific locations like hospitals, clinics, health clubs, and airports​​.

Can a

ChiroWay

franchise

be run as

a passive

investment?

The ChiroWay franchise agreement requires each individual who owns a 10% or greater interest in the franchisee entity, considered a "Principal Owner," to actively participate in the day-to-day operations of the franchise business. These Principal Owners, along with the spouses of any Principal Owners, must sign the Guaranty and Assumption of Obligations attached to the Franchise Agreement, committing to this level of involvement​​.

Additionally, the franchisor emphasizes the importance of the franchisee's active participation in the daily affairs of the Center. This involvement is crucial, although the franchisor does not make any representations or warranties about the potential success of the business based on this participation​​.

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