FDD Talk 2021: QC Kinetix Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

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

• Section I – Background information on the QC Kinetix franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a QC Kinetix franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a QC Kinetix franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned QC Kinetix outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of QC Kinetix’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 actual gross revenue, cost of goods sold, gross profit, advertising expense, rent, payroll, royalty, brand fund fee, other expenses, and net income for each of the 5 company-owned QC Kinetix businesses that were operational as of January 1, 2020 (Asheville, Charlotte, Austin, Winston-Salem, and Charleston) and the 4 company-owned QC Kinetix businesses that opened at some point in 2020 (Greenville, Lake Norman, Fort Mill, and Greensboro)

Section I – Background Information

12 Things You Need to Know About the QC Kinetix Franchise

Announces Official Partnership with Pro Football Hall of Famer Emmitt Smith

1.  At the beginning of June 2021, QC Kinetix announced its partnership with three-time Super Bowl Champion and NFL MVP Emmitt Smith. The Charlotte-based company that specializes in using natural biologic therapies to repair or heal damaged tissues and joints instead of relying on steroids, surgery, or pain meds, has found a perfect spokesperson for those looking to treat chronic pain and get back to an active lifestyle.

2.  Pro Football Hall of Famer and Dancing with the Stars Champion Emmitt Smith knows pain. Between injuries on the field, the wear and tear on his joints from dancing his way to a Mirror Ball Trophy, and a life-long athlete who once said, “You can’t play the game if you can’t play with pain,” Smith understands the benefits of using QC Kinetix’s state-of-the-art treatments and the body’s own healing properties to treat pain and enjoy an improved quality of life.

3.  Smith added, “During my 15 seasons in the NFL and then transitioning to my very active life after football, taking care of my body, and joints, has always been a primary focus for me. When I think about the longevity of my joints, it all starts with what I do today. QC Kinetix provides several different therapies that are state-of-the-art, cutting-edge treatments, which complement and promote the body’s natural healing process so well. It’s always exciting to partner with a company when you’ve experienced first-hand the quality and effectiveness of their products.”

4.  QC Kinetix is thrilled to be partnering with the NFL’s all-time leading rusher to introduce one of the fastest-growing medical specialties to people in need of pain relief. Justin Crowell, CEO of QC Kinetix, said, “Having Emmitt Smith on our team is a big win! No one understands joint pain better than he does. But as a winner, he also knows staying on top of his game means staying away from steroids and the operating room, and utilizing all the technology and treatments available to stay active and keep enjoying life. He is the perfect spokesperson to introduce our cutting-edge therapies to the public and we are thrilled to be working with him.”

5.  The natural biologic therapies offered at QC Kinetix were once only accessible to elite athletes like Smith but are now being offered to the public through regenerative medical clinics like QC Kinetix. The global regenerative medicine market is exploding, and QC Kinetix is differentiating itself by providing a high level of care and service to patients in a concierge setting. It is also the only regenerative medicine company offering a franchise opportunity to business owners who want to be part of the burgeoning medical specialty.

Launches National Franchising

6.  In mid-February 2020, less than three years after it was founded, QC Kinetix announced that it was turning to franchising to meet demand and expand its brand. Justin Crowell, Tyler Vail, MMS, PA-C, and Dr. Richard S. Schaffer, Jr., M.D. knew there had to be a better way to treat patients and enjoy their chosen professions. Together, they designed an injury treatment franchise business model that would become QC Kinetix, a cash-based clinic, free of the traditional headaches that come with practicing medicine, and inspired by the potential to heal patients with innovative and state-of-the-art treatments in regenerative medicine.

7.  Crowell said, “It really comes down to letting doctors practice medicine the way they always thought they would, making their own decisions and utilizing the latest and most effective treatments.” The three founders agreed that doctors should get to spend the time they need with their patients, treat them according to their expertise and not that of an insurance company, and have the quality of life they deserve to have while doing so.

8.  The best part is that the treatments work and have saved countless patients from requiring a surgical solution. At QC Kinetix, patients find relief from pain associated with arthritis soft tissue injuries, muscle tears, tendinitis, ligament injuries, and more. QC Kinetix chose to expand now because studies show regenerative medicine has the potential to radically alter the treatment of injury and disease, and top universities across the globe are investing in regenerative medicine research. According to QC Kinetics, it’s the future of medicine.

Company History

9.  QC Kinetix was founded in 2017 by Tyler Vail and his business partners Justin Crowell and Richard Schaffer, Jr. in Charleston, South Carolina. Prior to starting QC Kinetix, Vail was the Regenerative Medicine Director at the North Carolina medical practice where Crowell and Schaffer also worked and saw firsthand the tremendous results patients were experiencing with cellular therapies that allowed them to bypass surgery and a lifetime of pain medications or immobility.

10.  Vail, Crowell, and Schaffer believed in the power of regenerative medicine and saw the opportunity to start a practice that focused solely on regenerative medicine techniques. They also wanted to offer it “as a concierge type of service where patients pay cash and get a very high level of care and service.”

11.  The business partners began testing the QC Kinetix model in 2017, each Saturday in a small clinic they rented in Charleston. After seeing successful results in their clients, Vail, Crowell, and Schaffer opened additional QC Kinetix locations in North Carolina, South Carolina, and Texas. By late 2020, more than 275 QC Kinetix locations in 23 states have been sold and numerous clinics are slated to open by the end of 2021.

Entrepreneur’s Franchise 500

12.  QC Kinetix did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of QC Kinetix franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• Please click here for detailed information on QC Kinetix’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  2
• Net Change:  +1

2019

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  4
• Net Change:  +2

2020

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  9
• Net Change:  +5

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This information was prepared without an audit by QC Kinetix. Prospective franchisees should be advised that no certified public accountant has audited these figures or expressed his/her opinion with regard to their contents or form. You are encouraged to consult an accounting, business, or legal advisor to assess the likely or potential financial performance of your QC Kinetix Business.

Part 1 – Gross Revenue, Gross Profit, and Net Income of Company-Owned Units (January 1, 2020 through December 31, 2020)

• For purposes of the financial representation set forth in Part 1 below, “Company-Owned Units” means the following 9 non-franchised Businesses owned and operated by QC Kinetix’s affiliates at the following locations:

QC Kinetix, PC units located at:

• (i) 309 S. Sharon Amity Road, Suite 302, Charlotte, NC 28211,
• (ii) 1863 Hendersonville Road, Suite 133, Asheville, NC 28803,
• (iii) 610 Jetton Street, Suite 214, Davidson, NC 28036,
• (iv) 765 Highland Oaks Drive, #100, Winston-Salem, NC 27103, and
• (v) 1002 N. Church Street, Suite 202, Greensboro, NC 27401;

QC Kinetix, LLC units located at:

• (i) 180 Wingo Way, Ste. 201, Mount Pleasant, SC 29464,
• (ii) 1757 Woodruff Road, Ste. D, Greenville, SC 29607, and
• (iii) 1200 Gold Hill Road, Fort Mill, SC 29708; and

QC Kinetix of Texas, LLC unit located at:

• 3801 Bee Caves Road, #140, Austin, TX 78746.

• While the Charlotte, NC; Asheville, NC; Winston-Salem, NC; Mount Pleasant, SC; and Austin, TX units were operational as of January 1, 2020 through December 31, 2020, the Greenville, SC; Fort Mill, SC; Davidson, NC; and Greensboro, NC units were open for a partial 2020 calendar year from their respective opening dates as indicated below.

Asheville (Operational as of January 1, 2020)