The Joint Chiropractic Franchise Costs, Fees & FDD

Year Business Began: 1999

Franchising Since: 2003

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 965

Franchise Description: The Joint Corp. is the franchisor. The franchised business offered is for a cash-basis, private-pay clinic that offers chiropractic services to the public using a membership model. Clinics do not accept insurance as compensation for services rendered. A franchised clinic may be owned, operated and managed by the franchisee if either: (a) the franchisee is either a licensed chiropractor operating as a sole proprietorship or a Chiropractic PC that, under applicable state law, is authorized to provide chiropractic services and employ chiropractic staff; or (b) the franchisee develops the clinic in a state that allows a person who is not a licensed chiropractor or Chiropractic PC to own and operate a chiropractic clinic and employ chiropractic staff. A franchisee who does not qualify for a franchised clinic must acquire a managed clinic, where the franchisee manages (but does not own or operate) the clinic.
Training Overview: The franchisor will provide an initial training program for the managing owner and the general manager(s) at least 30 days prior to the opening date. Franchisees may send other owners to initial training, but it is not required. The managing owner and general manager(s) must successfully complete initial training to our satisfaction before the clinic opens. Initial training includes the following components (number of hours / days listed are approximate): 10 hours of online training modules, 3 to 5 days of on-the-job training with a certified trainer at a clinic the franchisor designates (typically in Arizona), and 3 to 4 days of training at the franchisor’s corporate office. Onsite training, which begins the day before the clinic opens, is an informal program where the opening supervisor monitors the franchisee’s operations, provides onsite training and assists with the opening of the clinic. The franchisor may offer periodic refresher or supplemental training programs for the managing owner, general manager(s) and other employees. The franchisor may designate these training programs as mandatory or optional.

Territory Granted: The Franchise Agreement grants franchisees the right to operate one clinic from a site the franchisee proposes and the franchisor accepts. Franchisees must identify a site for the clinic within the site selection area described in the Franchise Agreement. The territory will include between 10,000 and 25,000 households, as determined according to data generated by ArcGIS mapping and analytics software. During the term of the Franchise Agreement, the franchisor will not develop or operate, or license a third party to develop or operate, a clinic that is located in the territory and operates under the marks, except as otherwise permitted below with respect to captive venues and acquisitions (each defined in the FDD).

 

Obligations and Restrictions: Franchisees must designate a managing owner with overall responsibility for the management and operation of the clinic. The managing owner must be approved by the franchisor and successfully complete all training programs we require. At all times, the managing owner must hold a 5% or greater ownership interest in the franchised business. The managing owner is not required to provide onsite management of the clinic as long as a trained general manager is onsite. The may, but need not, allow franchisees to hire a general manager to assist the managing owner with onsite management and supervision of the clinic. At all times during normal business hours, either the managing owner or a trained general manager must be present at the clinic to provide onsite management and supervision. Subject to the professional judgment of franchisees (if they are a licensed chiropractor), the clinic operator (if the franchisee acquires a managed clinic) and the chiropractic staff, they must: (a) offer, sell and provide all goods and services the franchisor requires from time to time in its commercially reasonable discretion; (b) comply with the franchisor’s instructions regarding any changes it makes to these goods and services; (c) not offer, sell or provide any goods or services the franchisor has not approved; and (d) participate in any market research program the franchisor conducts by offering and promoting new or modified goods or services it prescribes on a trial basis.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees meet the conditions for renewal, they can enter into one consecutive successor franchise agreement. The renewal term will be 10 years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligations. The franchisor offers a $6,000 discount on the initial franchise fee for franchisees holding at least a 51% interest in the franchise is an honorably discharged veteran of any branch of the United States military and provides appropriate documentation. The franchisor reserves the right to offer other initial franchise fee discounts on a case-by-case basis.

Estimated Initial Investment

Type of Fee	Low	High
Initial Franchise Fee	$19,950	$39,900
Training Expenses	$3,500	$5,000
Lease & Utility Deposits	$3,700	$5,800
3 Months’ Rent	$9,000	$27,000
Clinic Design Fee	$1,000	$1,000
Architect Fee	$8,500	$20,000
Construction	$63,600	$225,000
Signage	$6,000	$12,000
Technology Systems	$6,000	$11,000
Chiropractic & Other Professional Equipment	$7,000	$22,500
Office Furniture & Equipment	$15,000	$25,000
Uniforms and Office Supplies	$1,500	$3,000
Business Licenses/Permits	$300	$3,000
Chiropractor Credentialing	$200	$300
Professional Fees	$3,000	$8,200
Grand Opening Advertising	$20,000	$25,000
Insurance Premiums	$2,000	$4,300
Additional Funds (3 months)	$75,000	$105,000
ESTIMATED TOTAL	$245,250	$543,000

 
Other Fees

Type of Fee	Amount
Royalty Fee	Greater of 7% of gross sales or $700 per month.
Brand Fund Fee	Up to 3% of gross sales (currently 2%).
Local Advertising Commitment	Greater of 5% of gross sales or $3,000 per month.
Cooperative Advertising Fee	Amount set by the franchisor or cooperative.
Technology Fee	Varies (currently $599 per month; may increase to $799 per month on 30 days’ notice).
Training Fee	Up to $1,000 per person per day (plus travel expenses for onsite training).
Conference Registration Fee	Up to $1,000 per person per day.
Call Center Program	Up to $200 per month (not currently imposed).
Product Purchases	Varies depending on item purchased.
New Product or Supplier Testing	Cost of testing (estimated to range from $500 to $2,000 per test).
Clinic Design Fee	$1,000 to prepare new clinic design; $600 to prepare clinic design for remodel midterm or upon renewal; $500 to modify existing clinic design.
Relocation Fee	$2,500.
Renewal Fee	25% of then-current initial franchise fee.
Transfer Fee	Varies depending on type of transfer.
Reimbursement of Inspection Costs	All travel expenses and other costs the franchisor incurs to travel to and inspect the franchisee’s clinic.
Audit Fee	Actual cost of audit (including travel expenses for audit team).
Late Fee	$100 plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law.
Noncompliance Fee	$100 per incident.
Default Reimbursements	All costs the franchisor incurs to cure the franchisee’s default.
Management Fee	Not to exceed greater of 10% of gross sales or $300 per day, during time the designee of the franchisor manages the franchisee’s clinic (plus travel expenses).
Indemnification	Amount of our damages, losses or expenses.
Attorneys’ Fees and Costs	Amount of attorneys’ fees and costs incurred by the franchisor.
Liquidated Damages	Up to two years of royalty and brand fund fees.

The above information has been compiled from the FDD of The Joint Chiropractic. Year of FDD: 2025.
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