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Franchise Costs 2013: Detailed Estimates of The Joint (The Chiropractic Place) Franchise Costs (2013 FDD)

by Franchise Chatter on December 5, 2013

in Chiropractic Franchise, Franchise Costs



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Detailed Estimates of The Joint Franchise Costs Based on Item 7 (Estimated Initial Investment) of The Joint’s 2013 Franchise Disclosure Document

1.  Initial Franchise Fee:  $29,000

2.  Security and Utility Deposits:  $3,700 to $4,800

  • This estimate includes security deposits required by the landlord and utility companies, but not your telecommunications service.

The Joint Photo by The Joint Katy, TX3.  Three Months’ Lease Rent:  $7,200 to $27,000

  • Your actual rent payments may vary, depending upon your location and your market’s retail lease rates. The franchisor recommends that you lease an office 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 will range from $2,400 to $9,000 depending on the size and location of the Location.
  • If you purchase instead of lease the premises for your Location, then the purchase price, down payment, interest rates, and other financing terms will determine the amount of your monthly mortgage payments.

4.  Architectural:  $1,500 to $4,000

5.  Leasehold Improvements:  $18,000 to $110,000



  • This estimate does not include any construction or tenant improvement allowances that may be offered by your landlord. Building and construction costs will vary depending upon the condition of the premises for the Location, the size of the premises, and local construction costs.

6.  Signage:  $3,600 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.

7.  Office Equipment, Including Furniture and Fixtures:  $3,800 to $6,900

  • You will need to purchase office furniture for the operation of your Location, including workstations and chairs, file cabinets, shelving, and an initial inventory of forms and stationery, and other items.

8.  Chiropractic and Other Professional Equipment:  $5,700 to $9,000

9.  Computer Hardware, Software, Supplies, and Installation:  $4,200 to $6,000

10.  Business Licenses and Permits:  $500 to $1,000

  • You may be required to obtain business licenses from the local government agency to operate your Franchised Business. The franchisor has estimated these costs to be between $500 to $1,000 depending upon the jurisdiction.

11.  Professional Fees:  $600 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, and to perform all necessary tax filings.

12.  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 from the franchisor’s required vendor.

13.  Initial Training Expenses, Including Travel:  $1,300 to $2,300

  • The franchisor estimates that your travel expenses for initial training will be $1,300 to $2,300. While the company does not charge for training, the Franchise Owner 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 $150 per day, per person, for lodging, food, and other miscellaneous expenses, plus travel expenses to and from the Franchise Owner’s personal residence. However, if the Franchise Owner lives in the Phoenix metropolitan area where the training will take place, the travel expenses will be minimal.

14.  Start-Up Supplies – Uniforms, Contracts, Invoices, and Other Office Supplies:  $1,250 to $2,000

15.  Marketing Expenses for Grand Opening/Start-Up and Up to the Third Month of Operation:  $5,000 to $10,000



  • The franchisor estimates that Grand Opening and other start-up advertising expenses will reach about $5,000.
  • Such monies should be spent by the Franchise Owner during the first 30 days of opening and must be spent by the Franchise Owner according to the Manual. The franchisor anticipates that your monies will be spent on newspaper/magazine advertisements and related customized marketing materials prepared by the company or third-party vendors.
  • Starting on the second month of operation of the Location, the Franchise Owner is expected to contribute to local advertising in an amount equal to the greater of $2,500 or 5% of the Location’s monthly gross revenue. Thus, the franchisor estimates that a Franchise Owner will pay a maximum amount of $10,000 for Grand Opening marketing and advertising expenses for the first 3 months of operation of a Location.

16.  Three Months’ Office Management Software Fee:  $825

17.  Additional Funds – 3 Months:  $20,000 to $35,000

  • The estimate of additional funds is based on an owner-operated business and does not include any allowance for an owner’s draw. The estimate of $20,000 is for a period of at least 3 months. The company estimates that, in general, you may expect to put additional cash into the business during at least the first 3 months, and sometimes longer.

18.  Total Estimated Initial Investment:  $110,175 to $271,025

  • The franchisor has relied on its experience in the industry in compiling these estimates.


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