OrthoLazer Franchise Costs $414K - $522K (2024 FDD Stats)

OrthoLazer Orthopedic Laser Centers was founded as a direct response to the opioid crisis, with a mission to provide an alternative solution to pain management that does not rely on opioids. The initiative was led by Dr. Scott Sigman, an orthopedic surgeon motivated by the devastating impact of opioid addiction in his community. The concept for OrthoLazer was developed in 2019, stemming from Dr. Sigman's experience and research into laser therapy's potential to reduce inflammation and pain without the side effects associated with traditional pain management methods.

The company is headquartered in Rochester, New York, at 50 Methodist Hill Drive, Suite 650. OrthoLazer distinguishes itself from competitors through its use of the exclusive MLS M8 Robotic Laser technology, which is FDA-cleared and patented for treating pain and inflammation associated with a wide array of conditions.

This technology sets OrthoLazer apart by offering a non-invasive, pain-free treatment option without the known side effects of other laser therapies available in the market. The franchise's approach combines advanced technology with patient-focused care, providing a unique value proposition in the realm of pain management and recovery.​

Initial Franchise Fee

The fee required upon signing the Franchise Agreement is $49,500, which is payable in full and non-refundable.

Lasers

To establish the franchise, you must either purchase or lease three M8 Multiwave Locked System (MLS) lasers at a purchase price of $225,000 from approved vendors.

Technology Fee

A monthly technology fee of $750 is required for the use of business operations software, starting within 30 days of signing the Franchise Agreement.

Area Development Fee

For each franchise to be developed under the Area Development Agreement, a fee of $25,000 is payable, with a refund of $25,000 upon the opening of each OrthoLazer Center.

Royalty Fee

An 8% royalty fee on monthly Gross Sales is due by the 10th of each month for the prior month's sales.

Brand Fund Fee

A 2% fee on monthly Gross Sales is allocated to the brand fund, payable by the 10th of each month for the prior month.

Minimum Local Advertising Spending

Franchisees are required to spend a minimum of $4,500 on local advertising every quarter.

Custom Graphic Design Fee

Custom graphic design work is billed at $95 per hour plus actual costs.

The franchisor provides a comprehensive training program for franchisees and their non-medical staff, covering various aspects of operating the franchise. Here's an overview of the training provided:

Initial Non-medical Training Program

• Before the opening of the Franchised Business, each owner and one non-medical manager approved by the franchisor must attend and complete the franchisor's initial non-medical training program to the franchisor's satisfaction.
• This program is designed to cover the System's operations and must be completed within ninety days of the staff's date of hire.
• Additional courses, seminars, and other training programs related to the System may be required from time to time by the franchisor.

Training Expenses and Details

• The training can be held at various times and places designated by the franchisor and may also be conducted via the Internet, intranet, conference call, or other means as determined by the franchisor.
• The franchisor provides instructors, training materials, and technical training tools at no charge for all required training courses, seminars, and programs.
• Franchisees are responsible for all other expenses associated with attending the initial training program and any additional training. This includes costs such as transportation, lodging, meals, and wages for themselves and their employees.

The franchisor does provide territory protection for franchisees. Once a site for the OrthoLazer Center is selected and approved by the franchisor, a Protected Territory is granted, which is defined in an addendum to the Franchise Agreement. The Protected Territory is typically determined based on natural traffic and trade patterns and is described using fixed geographical boundaries like streets, highways, zip codes, or counties.

It is specified that the Protected Territory will not be modified during the franchise term. However, upon renewal or transfer of the franchise, if the Protected Territory is larger than the current standard or if demographics have changed, the franchisor may reduce the size of the Protected Territory. In such cases, the franchisee or their transferee will be given the option to develop the remaining territory.

Furthermore, during the term of the Franchise Agreement, as long as the franchisee is in full compliance, the franchisor and its affiliates will not operate or grant a franchise for another OrthoLazer Center within the Protected Territory. However, it's important to note that the territory is not exclusive. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by the franchisor.

The Franchise Agreement mandates significant involvement from franchisees in the day-to-day operations of their franchises. Both the Operating Owner and a Business Manager are expected to be directly involved in the daily operations of the franchise. They must use their best efforts to promote and enhance the performance of the franchised business.

The Operating Owner is not mandated to have any minimum equity interest in the franchise. Any Business Manager employed at the opening of an OrthoLazer Center must complete an initial management training course required by the franchisor.

All subsequent Business Managers must also be fully trained according to the franchisor's standards, and the franchisor may charge a fee for this additional training. The Operating Owner is identified as the primary person responsible for overseeing and supervising the operation of the franchised business.