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

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​​​.

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.

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.

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​​.

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​​.