The Joint Chiropractic Franchise Costs $215K - $479K (2024)

The Joint Chiropractic franchise, founded in 1999, has significantly impacted the chiropractic industry by making chiropractic care more accessible, affordable, and convenient. The Joint is recognized as the largest chiropractic chain in the world, emphasizing its revolutionary approach by situating clinics in visible retail settings and offering a gym-like membership model that eliminates the need for insurance and appointments​​​​.

The franchise model is designed to be simple and efficient, requiring only a minimal staff of 3-4 employees at the launch, including a licensed Doctor of Chiropractic. This streamlined operation allows for an efficient patient treatment process and a high potential for profitability due to the low cost of goods sold and absence of insurance administration​​​​.

Prospective franchisees do not need to be chiropractors to own a The Joint franchise, making it an attractive opportunity for a wide range of investors. However, in states where unlicensed individuals cannot own or operate a chiropractic practice, franchisees can own a chiropractic management franchise that provides services to a practice owned by a licensed chiropractor​​.

Initial Franchise Fee

You are required to pay an initial franchise fee of $39,900 upon signing the agreement. This fee is considered fully earned and non-refundable at the time of signing due to the expenses incurred in providing assistance and services.

Royalty Fee

A continuing franchise royalty fee of 7% of the gross revenues of the franchise is payable, with a minimum monthly amount of $700. This fee is payable on the 1st and 16th of each month based on the franchise's gross revenues. If the total Royalty Fee collected for any month is less than $700, the difference shall be due on the 10th day of the following month.

Advertising Fee

The document specifies a contribution to the Ad Fund, which is a percentage of the gross revenues of the franchise, up to a maximum of 3% of the gross revenues. As of the date of the agreement, the required contribution to the Ad Fund is 2% of the gross revenues. These advertising fees are payable along with the Royalty Fees.

Technology Fee

The Computer System/Software Fee is currently set at $599 per month, which may increase up to $799 with 30 days' notice.

Lease or Rent Fee

Lease or rent costs vary depending on location, size, and market conditions. Initial expenses during the first three months may range from $9,000 to $27,000.

Transfer Fee

The Transfer Fee for any change of ownership or franchise agreement is $15,000.

Renewal Fee

The Renewal Fee is 25% of the then-current Initial Franchise Fee.

The franchisor provides comprehensive training to franchise owners and their employees, encompassing various aspects of operating the franchise. This training includes:

1. Initial Training Program: Franchisees must attend the franchisor's initial training program before the franchise opens for business. This program is designed to cover all essential operational aspects and may include both classroom instruction and hands-on training at a franchise location.
2. On-the-Job Training: Before the classroom training, franchisees undergo initial on-the-job training at a certified training clinic. This hands-on experience is crucial for understanding the day-to-day operations of the franchise.
3. Training at Franchise Site: Franchisees receive additional training at their franchise location just before and after the opening. This site-specific training ensures the franchise is set up correctly and operations run smoothly from day one.
4. Additional and Refresher Courses: The franchisor may offer optional or mandatory additional training courses periodically. These could be held at the company's headquarters or other designated locations and may cover new techniques, services, products, or other relevant topics.
5. Comprehensive Coverage: The training covers a wide range of topics, including operational procedures, customer service, marketing strategies, financial management, and compliance with legal standards. The franchisor's aim is to equip franchisees with all the knowledge and skills needed to operate successfully.
6. Training Materials and Resources: The franchisor provides various instructional materials, including handouts, manuals, online programs, and lectures. These resources are designed to support the learning process and ensure franchisees have access to consistent, up-to-date information.
7. Ongoing Support: Beyond initial training, the franchisor offers ongoing support and guidance, potentially including supplemental training programs, operational manuals, and on-premises training for specific needs.

The franchisor grants franchisees a protected territory, the size of which can vary based on population density and other demographic factors. In dense urban areas, the protected territory might be as small as a city block, while in suburban areas, it could encompass an entire municipality.

However, the franchisees do not receive an exclusive territory. While in full compliance with the Franchise Agreement, the franchisor and its affiliates will not operate or grant a franchise for another location offering the same or similar goods or services under the same or similar trademarks within the franchisee's protected territory.

This exclusion does not apply to non-traditional sites and franchises resulting from acquisitions. The franchisor retains the right to operate or grant franchises at non-traditional sites within the franchisee's protected territory, so franchisees may still face competition from various channels​​​​​​​​.

The franchisor expects franchisees to participate directly in the day-to-day operations of their franchise on a full-time basis. If franchisees are unable to do so, they are required to have a fully trained Manager to operate the franchise. The franchise agreement emphasizes the belief that individuals with an equity interest are best suited to maintain the franchisor's standards of quality and competence.

Accordingly, either the franchisee or a designated Manager must be actively involved in the daily operations and dedicate their best efforts to promote and enhance the performance of the franchised business​​. If the franchisee is an entity rather than an individual, then at least one owner, director, officer, or approved employee must fulfill the requirement of active participation in the franchise's day-to-day operations.

This involvement is essential for the efficient operation of the franchise. The franchise agreement may allow the employment of a General Manager to fulfill this role, provided that the General Manager meets the franchisor's approval and obtains all necessary licenses and certifications required by law before assuming their responsibilities​​​​.