FYZICAL Therapy & Balance Centers Franchise Costs, Fees & FDD

Year Business Began: 2012

Franchising Since: 2013

Headquarters: Sarasota, Florida

Estimated Number of Units: 615

Franchise Description: The franchisor is FYZICAL, LLC. The franchise is for a “FYZICAL” physical rehabilitation center that provides patients with physical therapy programs for rehabilitation, balance, medical-based wellness and pain management and other products and services that the franchisor authorizes from time to time.
Training Overview: The franchisor will provide initial training to the franchisee (or the operating principal) for a period of three to five days. The franchisor recommends, but does not require, that the office manager also attend the initial training program. Franchisees (or their operating principal) must complete the pre-lab courses and orientation program to the franchisor’s satisfaction within 90 days from the effective date of the Franchise Agreement and complete the lab program at least 60 days prior to the opening of the center. On-the-job training will occur on an as-needed basis as part of the initial training program. The franchisor requires that franchisees comply with a 90-day post-open success program after the opening of their center. The franchisor may provide periodic additional or refresher training programs for franchisees, their operating principal, clinical director, licensed professionals and/or other key employees. The franchisor may also hold periodic national or regional conferences, including an annual conference (up to two days in duration), to discuss various business issues and operational and general business concerns affecting FYZICAL centers.

Territory Granted: Each Franchise Agreement grants franchisees the right to operate a single FYZICAL center at a single location that will be approved by the franchisor. As long as franchisees are in compliance with the Franchise Agreement, including the minimum performance standards, the franchisor will not, during the term of the Franchise Agreement, operate or grant others the right to operate another FYZICAL center within the specific geographic area designated as the franchisee’s protected area. The size of the protected area will be a radius around the center that encompasses a population of approximately 40,000. The size of the protected area will not be increased or reduced due to any change in population during the term of the Franchise Agreement. Commencing with the second year of operations, franchisees agree to minimum performance levels each year during the term of their Franchise Agreement to retain exclusive rights in the protected area.

Obligations and Restrictions: If the franchisee is a business entity or more than one natural person, then the franchisor requires the franchisee to designate an owner or principal officer acceptable to the franchisor to assume responsibility for the supervision, management and proper operation of the center (the “operating principal”). The franchisor does not require the operating principal to have an ownership interest in the business entity. The operating principal will have the authority to bind the franchisee regarding all operational decisions with respect to the center. If the franchisee (or the operating principal) will not be actively supervising and managing the center or if the franchisee (or the operating principal) does not qualify as a licensed professional, then the franchisee must agree to recruit and hire a clinical director. Franchisees agree all products and services they use, offer or sell at their center will conform to the franchisor’s standards and specifications. Franchisees agree not to deviate from the franchisor’s standards and specifications unless it first gives written consent. Franchisees also agree to comply with all applicable laws and regulations and secure all governmental approvals for the operation of the center.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may acquire two additional, consecutive franchises for 10 years each if they sign the then-current form of the Franchise Agreement (which may have terms and conditions materially different than the original franchise agreement) and satisfy other renewal conditions.

Financial Assistance: Except for existing franchisees, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee any of a franchisee’s notes, leases or obligations. The franchisor does not receive any direct or indirect payments or other consideration from any person for the placement of any financing with any lender. The franchisor reduces the initial franchise fee for the first center by 10% for qualified veterans. In addition, the franchisor may reduce or discount the initial franchise fee from time to time, at its discretion, for various promotions and incentive programs.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,000	$49,000
Grand Opening Marketing Fund	$5,000	$18,000
Training Expenses (including reasonable food, lodging & travel - per person)	$1,750	$5,000
Lease Deposit & Rent	$2,600	$5,600
Build Out & Improvements	$65,000	$180,000
Security System	$500	$2,500
Computer System	$1,000	$3,000
Furniture, Fixtures and Equipment	$11,000	$76,000
Signage, Branding, Design	$2,000	$15,000
Utility Deposits, Business Licenses & Other Prepaid Expenses	$1,000	$5,000
Insurance (12 months)	$3,000	$5,000
Miscellaneous Opening Costs	$1,000	$5,000
Additional Funds (5-9 months)	$25,000	$150,000
ESTIMATED TOTAL	$167,850	$518,600

 
Other Fees

Type of Fee	Amount
Royalty	Year 1: Greater of $1,000 per month or 6% of gross revenue generated in the preceding month. Year 2: Greater of $2,000 per month or 6% of gross revenue generated in the preceding month. Years 3-10: Greater of $3,000 per month or 6% of gross revenue.
FYZICAL Business Intelligence Program	Currently not charged. Estimated to be $500 per month with an option to receive enhanced services at an additional cost of $150 per user.
Marketing Fund Contribution	Currently not charged. Estimated to be up to 2% of gross revenue per month.
Medical Billing Services Fee	Currently 5.4% of net collections.
Periodic Training Fee	Currently not charged. Shall not exceed $1,500 per person.
On-Site Training Fee	Estimated to be $800 - $1,600 per trainer per day, plus reimbursement of all reasonable travel, meals, lodging and other expenses of the franchisor’s training personnel.
Website Development / Hosting Fees	Currently not charged.
Telephone / Call Center Support Fees	Currently not charged.
Renewal Fee	10% of then-current initial franchise for the franchisee’s protected area.
Transfer Fee	10% of then-current initial franchise for the franchisee’s protected area.
Audit Fee	Actual cost of the audit or inspection.
Late Fee	Lesser of 12% of amount past due or highest rate allowed by applicable law.
Supplier Testing Costs	Reasonable fees and reimbursement of the franchisor’s costs and expenses for inspection and testing.
Insufficient Funds Fee	$35 per occurrence.
Indemnification	Will vary with circumstances.
Insurance	Amount of unpaid premiums, plus an administrative fee.
Relocation	The franchisor’s costs and expenses.

The above information has been compiled from the FDD of FYZICAL Therapy & Balance Centers. Year of FDD: 2025.
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