Updated March 14, 2020.
Detailed Estimates of The Joint Chiropractic Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Joint Chiropractic’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $20,000 to $39,900
2. Security and Utility Deposits: $3,700 to $5,800
- This estimate includes security deposits commonly required by the landlord and utility companies, but not your telecommunications service.
3. Three Months’ Base Lease Rent: $9,000 to $27,000
- Your actual rent payments may vary, depending upon your location, its size, and your market’s retail lease rates and negotiated terms. The franchisor recommends that you lease a space of no less than 1,000 square feet with access to bathrooms, and provisions for telecommunication equipment and office furniture.
- The franchisor estimates your initial expense for leasing office space during the first three months may range from $9,000 to $27,000 depending on the size and location of the Location Franchise.
- If you purchase instead of lease the premises for your Location Franchise, then the purchase price, down payment, interest rates, and other financing terms will determine the amount of your monthly mortgage payments.
4. Clinic Design Fee: $1,000
5. Architectural: $8,500 to $12,000
6. Leasehold Improvements: $63,600 to $150,000
- This estimate does not include any construction allowances that may be offered by your landlord or presume a specific delivery condition. Building and construction costs will vary depending upon the condition of the premises for the Location Franchise, the size of the premises, and local construction costs.
- The estimate does not take into account any tenant improvement allowances or enhanced delivery conditions that may be given by the landlord.
7. Signage: $5,600 to $9,000
- These estimates assume you will purchase your signage. The type and size of the signage you actually install will be based upon the zoning and property use requirements and restrictions. There could be an occasion where signage is not permitted because of zoning or use restrictions.
8. Office Equipment, Including Furniture and Fixtures: $5,000 to $7,000
- You will need to purchase office furniture for the operation of your Location Franchise, including workstations and chairs, file cabinets, shelving, and an initial inventory of forms, stationery, and other items.
9. Chiropractic or Other Professional Equipment: $5,800 to $13,000
10. Computer Hardware, Software, Supplies, and Installation: $4,200 to $9,000
11. Business Licenses and Permits: $750 to $3,800
- You may be required to obtain business licenses from the local government agency to operate your Franchised Business and/or enter into a Management Agreement with a PC in those states that require a PC to own the chiropractic practice. The franchisor has estimated these costs will be between $750 and $1,800 just for business licenses depending upon the jurisdiction.
12. Professional Fees and Services: $3,000 to $6,200
- You may incur legal fees, accounting fees, and other professional fees in order to incorporate your business, set up a PC, review agreements relating to the operation of the franchise, to perform background checks and personality profiles of potential employees and medical professionals, and to perform all necessary tax filings and to set up a small business or a PC, including a general ledger, tax reports, payroll deposits, etc.
13. Insurance: $4,000 to $8,000
- The franchisor estimates that your annual cost of insurance will range from $4,000 to $8,000. You must purchase all insurance necessary to operate your franchise, including but not limited to, professional liability insurance for all chiropractors who work in or supervise each clinic, as outlined in the company’s Manual.
14. Initial Training Expenses, Including Travel: $2,500 to $5,000
- The franchisor estimates that your travel expenses for initial training will be $2,500 to $5,000. While the company does not charge for training, the franchisee is required to pay for his/her transportation to and from the training site and pay for his/her living arrangements and food during the time of training.
- The company estimates costs of $250 per day, per person, for lodging, food, and other miscellaneous expenses, plus travel expenses to and from the franchisee’s personal residence.
15. Start-Up Supplies – Uniforms, Contracts, Invoices, and Other Office Supplies: $1,250 to $2,000
16. Local Advertising Fees for 3 Months: $9,000
17. Grand Opening: $14,000
- The franchisor estimates that a separate Grand Opening start-up advertising expense (excluding your Minimum Local Advertising Requirement and any pre-opening marketing expenses) will be $14,000.
- You must spend this amount in accordance with the Manual during the 120-day period that begins 30 days prior to the opening of your franchise, and ends 30 days after the opening of your franchise.
18. Three Months’ Office Management Software Fee: $1,797
19. Additional Funds for 3 Months: $20,000 to $45,000
- The estimate of additional funds is based on an owner-operated business and does not include any allowance for an owner’s draw or account for charges for their applied labor. The estimate of $20,000 is for a period of at least 3 months. The company estimates that, in general, you should expect to put additional cash into the business until you achieve sales and incur operating expenses that allow you to achieve monthly operating break-even at your Location Franchise.
20. Total Estimated Initial Investment: $182,697 to $368,497
- The franchisor has relied on its experience in this industry in compiling these estimates.