The Joint Chiropractic Franchise Costs & Fees
Date of Incorporation: 1999
Franchising Since: 2003
Headquarters: Scottsdale, Arizona
Business Description: The Joint Corp. is the franchisor. Franchisees own, operate and/or manage clinics that specialize in providing chiropractic services and products to the general public through licensed chiropractic professionals. If franchisees are an unlicensed person, they may own and operate a Clinic only if it is permissible under applicable law, otherwise, they may only manage a Clinic for a licensed person or entity that is authorized to own and operate a Clinic.
Franchise Offer: The franchisor currently offers a single-unit franchise, or location, franchise.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligations.
Training and Assistance: The training program is comprised of 24 hours of classroom/online training and 16 hours of initial on the job training. The classroom training program must be completed to the franchisor’s satisfaction before the opening of the Location. On-the-job training will occur at the franchisee’s Location site within a few days before and after the opening of the Location. The franchisor also may offer additional or refresher training courses from time to time. Some of these courses may be mandatory, and some may be optional.
Territory: The franchisor will grant franchisees a protected territory. The franchisor will define the Protected Territory in an addendum to the Franchise Agreement after franchisees select and the franchisor approves the site for the Location franchise. Typically, the Protected Territory will include between 10,000 to 30,000 households as defined by the natural traffic and trade patterns of the approved site. If franchisees are in full compliance with the Franchise Agreement, then during the Franchise Agreement’s term, neither the franchisor nor its affiliates will operate or grant a franchise for the operation of another The Joint Location franchise or Company-owned Location located within the Protected Territory (except for The Joint Locations at Non-Traditional Sites) that offers the same or similar goods or services under the same or similar trademarks.
Term of Agreement and Renewal: The length of the initial franchise term 10 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer them the right to 1 renewal term of 10 years.
Obligations and Restrictions: Franchisees are expected to participate in the direct operation of their franchise on a full-time basis. If they cannot, then they are obligated to have a fully trained Manager operate the franchise. The Franchise Agreement requires that franchisees, or a designated Manager, be directly involved in the day-to-day operations and utilize their best efforts to promote and enhance the performance of the Franchised Business. Franchisees must operate the Franchised Business in strict conformity with all prescribed methods, procedures, policies, standards, and specifications of the System, as set forth in the Manual and in other writings by the Company from time to time. Franchisees must use the Premises only for the operation of their Franchised Business and may not operate any other business at or from the Premises without the express prior written consent of the Company.
Estimated Number of Units: 320
|Name of Fee||Low||High|
|Initial Franchise Fee||$39,900||$39,900|
|Security and Utility Deposits||$3,700||$5,800|
|3 Month's Base Lease Rent||$9,000||$27,000|
|Office Equipment, including Furniture and Fixtures||$5,000||$7,000|
|Chiropractic or Other Professional Equipment||$5,800||$9,000|
|Computer Hardware, Software, Supplies and Installation||$3,200||$4,500|
|Business Licenses and Permits||$750||$3,800|
|Professional Fees and Services||$3,000||$6,200|
|Initial Training Expenses, including Travel||$1,300||$2,300|
|Start-up Supplies - Uniforms, Contracts, Invoices and Other Office Supplies||$1,250||$2,000|
|Local Advertising Fees - 3 months||$9,000||$9,000|
|Office Management Software Fee - 3 months||$1,200||$1,200|
|Additional Funds - 3 months||$20,000||$45,000|
|Type of Fee||Amount|
|Royalty Fee||7% of weekly Gross Revenues with a monthly minimum of $700|
|Advertising Fund Contributions||Currently 2% of weekly Gross Revenues.|
|Local or Regional Regional Advertising Cooperatives/td>||Varies without limitation; based on a vote of the cooperative.|
|Minimum Local Advertising Requirement||$3,000 or 5% of monthly Gross Revenues whichever is greater.|
|Interest||Lesser of (i) the highest commercial contract interest rate permitted by state law, and (ii) the rate of 18% per annum.|
|Audit Expenses||Cost of audit and inspection, plus any reasonable accounting and legal expenses.|
|Fee for Sale of Prohibited Products or Services||$100 per day administrative fee plus the associated royalty fees due and any costs incurred by the franchisor.|
|Computer System/Software Fee||An amount set by the franchisor. Currently $400 (but may be increased up to $599 after 30 days prior written notice).|
|Product and Service Purchases||Vary depending on the product and service.|
|Insurance||Amount of unpaid premiums and related costs, administrative fees and late charges.|
|Renewal Fee||25% of the then current Initial Franchise Fee.|
|Remodeling, Expansion, Redecorating or Refurnishing Costs||At least $10,000 every 4 years.|
|Transfer Fee||$15,000 for an opened Location franchise; $5,000 for an unopened Location franchise in good standing.|
|Relocation Fee||An amount set by the franchisor, currently $2,500|
|Legal Costs and Attorney’s Fees||All legal costs and attorneys’ fees incurred by the franchisor.|
|Indemnification||All amounts (including attorneys’ fees) incurred by the franchisor or otherwise required to be paid.|
|De-Identification||All amounts incurred by the franchisor.|
|Termination Fee||One-half of the then-current Initial Franchise Fee, plus the franchisor’s attorneys’ fees and costs.|
The above information has been taken from the FDD of The Joint Chiropractic. Year of FDD: 2016
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