100% Chiropractic Franchise Costs, Fees & FDD

Year Business Began: 2004

Franchising Since: 2004

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 125

Franchise Description: The franchisor is TACTIC Franchising, LLC. The franchisor licenses the right to operate a 100% Chiropractic franchised location, which, depending on applicable state law, either (a) involves the operation of a clinic that specializes in providing chiropractic services and products to the public through licensed chiropractic professionals, or (b) involves the operation of a business that provides management services to professional corporations that specialize in providing chiropractic services and products to the public through licensed chiropractic professionals.
Training Overview: The training program is comprised of 34 hours of classroom/online training and 148 hours of initial on the job training. The classroom training program is required to be completed to the franchisor’s satisfaction prior to opening of the location. On-the-job training will occur at a location which the franchisor may authorize, either the franchisee’s location or the nearest clinic with an experienced doctor on staff. The franchisor may also occasionally offer additional or refresher training courses. These courses may be conducted at any location that the company is using for such training.

Territory Granted: Under the Franchise Agreement, there is no minimum amount of territory in which the franchisor grant franchisees the right in which to operate, however the franchisor reserves the right to grant a designated territory around the premises of the franchised business(es) at its discretion. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: The Franchise Agreement requires that franchisees be involved in the day-to-day operations of the franchised business and utilize their best efforts to promote and enhance its performance. Franchisees are required to operate the location franchise with all specified methods, procedures, policies and standards of the system, as set forth in the platform and in other writings issued by the franchisor from time to time. Franchisees are required to use the premises solely for the operation of the location franchise and may not operate any other business at or from the premises without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the required preconditions to renewal, the franchisor will offer them the right to one renewal term of 10 years.

Financial Assistance: The franchisor offers financing to franchisees in the form of promissory notes for the initial franchise fee as part of its IFF Finance Program. The franchisor also may, in its discretion, offer financing to franchisees in the form of a promissory note for expenses relating to the lease security deposit, remodeling, initial equipment or fixtures, opening inventory and supplies and expected expenses (in excess of revenues) for the first three months of the operation of the franchise. Except for these programs, the franchisor does not offer any other financing, including for ongoing operations. The franchisor may (but are not required to) provide franchisees with a line of credit loan (“line of credit”), which is intended to provide a moderate amount of money over a short term to assist franchisees with their operational needs, normally less than $50,000.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$7,500	$51,000
Rental Security and Utility Deposits	$2,979	$12,250
Three Months’ Lease Rent	$7,500	$35,000
Architectural	$6,000	$15,000
Office Planning	$4,500	$4,500
Office Millwork	$42,063	$43,738
Leasehold Improvements	$104,550	$320,000
Signage	$5,000	$15,000
Office Equipment, including Furniture and Fixtures	$6,000	$9,000
Chiropractic or Other Professional Equipment	$15,600	$32,400
X-Ray Machine	$38,900	$40,142
Computer Hardware, Software, Supplies and Installation	$19,500	$25,000
Business Licenses and Permits	$3,500	$5,000
Professional Fees and Services	$3,000	$6,900
Insurance (3 months)	$900	$1,650
Doctor Credentialing	$750	$1,500
Initial Training Expenses, including Travel	$16,000	$39,000
Start-Up Supplies (contracts, invoices, and other office supplies)	$9,500	$9,500
Start-Up Marketing Expenses (through the third month of operation)	$16,000	$25,900
Marketing Expenses for Grand Opening	$0	$1,000
Additional Funds (three months)	$30,000	$120,000
ESTIMATED TOTAL	$339,742	$782,080

 
Other Fees

Type of Fee	Amount
Royalty Fee	6.5% of gross revenue. The amount will not exceed $7,500 per month nor be less than $2,500 per month with a $1,500 minimum for the first 3 months.
Billing Fee (Revenue Cycle Management Services)	10% of insurance collections.
Marketing Fee (Contribution to Company’s Marketing Fund)	Currently $800 per month.
Local or Regional Advertising Cooperatives	None; allocated by the franchisor from the marketing fee.
Default Interest	18% per annum or the maximum rate permitted by law.
Local Marketing Advertising/ Social Media	$1,700 - $2,599 per month.
Late Charge	Higher of $50 per day or the highest allowed by law.
Audit Expenses	Cost of audit and inspection, plus any reasonable accounting and legal fees.
Non-Compliance Charge	$500 per violation.
Fee for Sale of Prohibited Products or Services	$100 per day.
Technology Fee	Currently $1,250 for an assortment of technology processes and services.
Insurance Reimbursement	Amount of unpaid premiums and related costs.
Renewal Fee	$5,000
Remodeling, Expansion, Redecorating or Refurnishing Costs	At least $6,000 every 4 years.
Transfer Fee	The higher of 20% of the then-current initial franchise fee or $10,000.
Relocation Fee	An amount set by us, currently $2,500.
Legal Costs and Attorneys’ 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.
Bi-Annual Tribe Meetings	$750 to $1,250 per person (plus expenses).
Non-Attendance Fee for Mandatory Trainings and Meetings	$400 per day missed unless the franchisor consent is obtained but all deposits lost.
Requests for Additional Training	A mutually agreed upon rate.
Fee for Requesting Approval of a New Product or Service	$250 per request.
Professional Corporation (applicable only in the P.C. Structure with management)	$500 per month for the first year and $1,200 per month for the second and future years.
Liquidated Damages	Will vary depending upon the circumstances of early termination.

The above information has been compiled from the FDD of 100% Chiropractic. Year of FDD: 2024.

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