In this FDD Talk post, you’ll learn the following:

• Section I – Background information on The Joint Chiropractic franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for The Joint Chiropractic franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Joint Chiropractic franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned The Joint Chiropractic outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of The Joint Chiropractic’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, highest, and lowest gross sales, patient visits per week, and new patient visits per week for the first quartile, second quartile, third quartile, fourth quartile, and all 351 The Joint Chiropractic Clinics that were open and operating for at least 12 months starting on January 1, 2018, in the United States

• 2018 average gross sales, cost of goods sold, labor expense, facilities expense, insurance, operating expense, and clinic profit of the 103 franchised The Joint Chiropractic Clinics operating between January 1, 2018 and December 31, 2018 and provided profit and loss information to the franchisor for the entire year

Section I – Background Information

18 Things You Need to Know About The Joint Chiropractic Franchise

Reaches Milestone with Opening of 500th Location

1.  In late November 2019, The Joint Chiropractic celebrated a remarkable milestone: the opening of its 500th chiropractic clinic. Since its founding in Tucson, Arizona in 1999, The Joint has grown to a nationwide system of 500 chiropractic clinics in 33 states. The official 500th clinic in the network was The Joint Chiropractic – South Orange in Orlando, Florida.

2.  Peter D. Holt, president and CEO of The Joint Corp., said, “We have achieved the elite status of 500 clinics, which, according to FRANdata, less than five percent of franchise brands can claim. This accomplishment reflects the strength of our retail healthcare franchise and the relentless dedication of our amazing team of franchisees, regional developers and employees. Most importantly, our growth is fueled by the rising number of patients we serve, which supports our increasing presence across the country. With our expansion, The Joint Chiropractic is gaining national recognition, and we expect to continue to drive accelerated growth momentum.”

Unveils New Brand Campaign

3.  At the beginning of October 2019, The Joint Chiropractic launched a new brand campaign focusing on everyday pain relief and highlighting real patient outcomes, as well as their chiropractic care stories. Called “You’re Back, Baby.,” the wide-ranging campaign launched across television, outdoor, print, and online ads, as well as website platforms, retail channels, and social media assets across the country.

4.  According to Peter D. Holt, president and CEO of The Joint Corp., “‘You’re Back, Baby.’ recognizes our patients’ desire to live their lives without restrictions. As our campaign demonstrates, whether you’re a dancer, a hairdresser, a U.S. Marine or have other passions you pursue, chiropractic care can be key to a healthy lifestyle. This new campaign is a tribute to the real patients who come to The Joint seeking pain relief and ongoing wellness.”

5.  In 2018, The Joint introduced a significant consumer research initiative to understand its customer journey, patient mindset, and the chiropractic marketplace – the first of its kind for the company. The results informed a new brand positioning and architecture, leading to the development of the brand campaign.

6.  Holt added, “We learned that the majority of our patients visit The Joint Chiropractic because they’ve had a problem with pain that they couldn’t solve, and that the pain came from everyday life situations. Once we examined the key insights from our research, we were inspired by our patients and their stories. The result is our focus on real people, in real life situations, finding relief from pain through chiropractic care.”

Becomes Official Chiropractor for Georgia Tech Athletics

7.  Near the end of August 2019, The Joint announced that it had become the official chiropractor for Georgia Tech Athletics for the 2019-2020 Academic Year. This partnership reflects the strong relationship between chiropractic care and athletic performance. Chiropractic provides a safe, natural, and drug-free option to relieve pain, as well as preventative benefits vital to keeping the body balanced, flexible, and functioning at its best.

8.  Peter D. Holt, president and CEO of The Joint Corp., said, “We are honored to begin this relationship with Georgia Tech Athletics which underscores the correlation between sports, training and exercise with chiropractic care. There are many physical demands of being an elite competitor and The Joint is proud to support the athletes at Georgia Tech to be their best – every day and for every game.”

9.  For athletes, chiropractic adjustments have the potential to ease pain, increase range of motion, and help them avoid injuries. Experts estimate that 90 percent of all world-class athletes use chiropractic care to prevent injuries and improve their performance.

10.  Dave Bouteiller, general manager of Georgia Tech Sports Properties, added, “We are thrilled to partner with The Joint Chiropractic. Improving the quality of life through routine and affordable chiropractic care is at the core of The Joint’s mission and we are excited to team up in support of Georgia Tech Athletics.”

Announces Endowment to Palmer Center for Business Development

11.  At the beginning of August 2019, The Joint Chiropractic announced that it had committed to gifting a $150,000 donation through an endowment for the Palmer Center for Business Development at Palmer College of Chiropractic.

12.  According to Peter D. Holt, president and CEO of The Joint Corp., “We are honored to support Palmer College of Chiropractic and champion the future of chiropractic care. The Joint is passionate about investing in the success of the chiropractic profession. Supporting leading schools that educate our talent pool is another avenue to enhance our brand awareness among doctors and students.”

13.  The endowment will provide funding for programming and services carried out through the Palmer Center for Business Development, which provides students and alumni with the business skills needed to build a successful career in chiropractic. The focus shall be to increase student learning opportunities and readiness as they prepare to enter full-time practice upon graduation.

14.  Kevin Cunningham, D.C., Ph.D., FPAC, vice chancellor for student affairs, added, “This endowment helps ensure that our students have additional resources and programs to support them in their chiropractic careers. We’re thankful for The Joint’s support and for the opportunities this endowment will provide for future Palmer chiropractors.”

Company History

15.  The Joint Chiropractic was founded in 1999 by Dr. Fred Gerretzen, a chiropractor, in Tucson, Arizona. Dr. Gerretzen wanted to transform the traditional, often misunderstood concept of routine chiropractic care by making it affordable and convenient. After just a few years, Dr. Gerretzen began franchising The Joint concept.

16.  On his own, Dr. Gerretzen opened about a dozen franchise locations, but in 2010, The Joint investment group brought in franchise expert John Leonesio, the founder of Massage Envy, to set up a growth model beyond what Gerretzen had accomplished. At that time, The Joint was “re-founded” as a national franchise and the company’s growth took off around the country.

17.  Leonesio served as The Joint’s CEO for several years and helped accelerate the company’s growth. Today, there are company-owned and franchised locations throughout the country.

Entrepreneur’s Franchise 500

18.  The Joint Chiropractic ranked No. 78 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of The Joint Chiropractic franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on The Joint Chiropractic’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  265
• Outlets at the End of the Year:  309
• Net Change:  +44

2017

• Outlets at the Start of the Year:  309
• Outlets at the End of the Year:  352
• Net Change:  +43

2018

• Outlets at the Start of the Year:  352
• Outlets at the End of the Year:  394
• Net Change:  +42

Company-Owned

2016

• Outlets at the Start of the Year:  47
• Outlets at the End of the Year:  61
• Net Change:  +14

2017

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  47
• Net Change:  -14

2018

• Outlets at the Start of the Year:  47
• Outlets at the End of the Year:  48
• Net Change:  +1

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

Part 1 – Average Gross Sales of All Operating Clinics

• As of the end of The Joint Chiropractic’s 2018 fiscal year, there were 351 Clinics that were open and operating in the United States for at least 12 months and for the entire year of 2018. This financial performance representation is based on actual Gross Sales figures of the network of 351 total The Joint Clinics that were open and operating for at least 12 months starting on January 1, 2018, in the United States.

• All of the operating Clinics are comparable to the franchise opportunity The Joint Chiropractic offers in its FDD, in that they use the prototypical business format and operating procedures The Joint Chiropractic prescribes for all Clinics.