In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Fyzical Therapy & Balance Centers franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Fyzical Therapy & Balance Centers 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 Fyzical Therapy & Balance Centers franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned Fyzical Therapy & Balance Centers 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 Fyzical Therapy & Balance Centers’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- 2019 and 2020 aggregate, average, median, highest, and lowest gross revenue and EBITDA for the (i) 14 company-owned centers that Fyzical’s affiliates owned and operated for at least 10 months of 2019 (“2019 Reporting Centers”), and (ii) 21 company-owned centers that Fyzical’s affiliates owned and operated for at least 10 months of 2020 (“2020 Reporting Centers”)
- 2019 and 2020 average, median, highest, and lowest gross revenue per full-time equivalent clinician for the 2019 Reporting Centers and the 2020 Reporting Centers
- 2020 actual number of patient visits, cases, and patient visits/case for the 2020 Reporting Centers, by region (Southwest Florida, North Central Florida, Las Vegas, North Carolina and South Carolina)
- 2019 and 2020 average cash services, cash per patient visit, and cash per case for the 2019 Reporting Centers and the 2020 Reporting Centers
- 2019 and 2020 average, median, highest, and lowest gross revenue for the (i) 101 franchisees that operated one or more Fyzical centers for the full 2019 calendar year (the “2019 Participating Franchisees”), and (ii) 102 franchisees that operated one or more Fyzical centers for the full 2020 calendar year (the “2020 Participating Franchisees”)
- 2020 average gross revenue for the 2020 Participating Franchisees, based on the number of centers owned by them (1 center, 2 centers, 3 centers, 4+ centers)
- 2019 and 2020 average percentage growth in gross revenue for conversion franchisees after joining the Fyzical system
Section I – Background Information
16 Things You Need to Know About the Fyzical Therapy & Balance Centers Franchise
Launches Pulmonary Program to Help COVID-19 Patients Recover with Personalized Plans
1. In late September 2020, Fyzical Therapy & Balance Centers said that when COVID-19 first hit, the Fyzical team brought operations, headquarters team members, and franchisees together to create a task force to handle challenges and support franchisees and clients. Through this, the Pulmonary Program was born. The Fyzical team wanted to provide proactive care to the communities that have been affected by COVID-19 throughout the U.S.
2. The Pulmonary Program includes offering a pulmonary care guide with resources about overall treatment protocols, help with evaluations, and innovative tools. The Fyzical team brought together the best research they could find through the American Physical Therapy Association, medical resources, and clinicians that had a passion for pulmonary.
3. Now, multiple Fyzical locations have been participating in the Pulmonary Program and helping COVID-19 patients recover, with more than 500 team members logged into the project board. When it comes to treatment procedures, COVID-19 is its own unique category. Patients require specialized treatment and pulmonary rehab. Since patients may be suffering from poor sleep patterns, it can lead to anxiety, depression, and cognition issues. Also, patients that were in ICU units could have even further complications and their immune system could be further compromised.
4. According to Denise Campbell, a multi-unit Fyzical owner and high-level breathing practitioner, “The Pulmonary Program is a comprehensive approach to care that will address the multitude of issues that can arise from dysfunctional breathing patterns caused by something as traumatic as COVID-19. This personalized program will help clients strengthen their breathing patterns – when breathing is healthy and balanced, it boosts the immune system and helps clients recover, both physically and emotionally.”
5. Typically, patients who have been receiving vestibular treatment in the past end up deconditioned because COVID-19 negatively impacts breathing. Much of Fyzical’s expertise is already focused on improving posture, which in turn, allows patients to breathe better. “Since our centers are already well-equipped for balance issues, FYZICAL provides physical therapists access to the kind of advanced testing materials and resources needed to offer this kind of comprehensive pulmonary care,” said Campbell.
6. Moving forward, Fyzical’s personalized programs help treat an individual patient based on where they are in the recovery process. “We developed protocols and patient care because we know that those recovering from COVID-19 need to be thought of and looked at differently,” said CEO Brian Belmont. “This virus is unprecedented, so we brought in national experts that are constantly pulling together the latest information when it comes to pulmonary issues and treatments. Luckily, our clinicians are already balance experts, so we can combine that knowledge with new tools, resources and training to provide highly confident care that is COVID-19 specific and help clients achieve optimal wellness and get back to living their best life.”
Now an Accredited Orthopedic Residency Program
7. In early February 2021, Fyzical Therapy & Balance Centers announced that it now offers an orthopedic residency program that has been accredited by the American Board of Physical Therapy Residency and Fellowship Education (ABPTRFE). The accreditation means that Fyzical now offers a clinical pathway for its Physical Therapists to undergo advanced training and become certified Orthopedic Clinical Specialists.
8. Since 1996, only 322 residency programs have earned accreditation from ABPTRFE, putting Fyzical in an elite category that is even smaller when accounting only for orthopedic residency programs. That means that for Physical Therapists hoping to become certified Orthopedic Clinical Specialists, Fyzical is among the best and most accessible options. The accreditation also supports Fyzical’s mission to provide the highest level of care for patients and reduce practice variability across locations.
9. Dr. Gavin Hamer, Fyzical’s national director of education, said, “By offering an accredited residency program, we are further fulfilling our commitment to excellence across our franchise system. We now have a new resource to attract Physical Therapists who are committed to life-long learning and evidence-based practice. In turn, those Therapists will provide the best possible care for patients, improving their outcomes.”
10. Fyzical’s accreditation as an orthopedic residency was years in the making. In 2016, Dr. Rick Douglass, Fyzical’s president of operations, proposed his initial vision for the residency program and submitted an application to the ABPTRFE. It was two years before the application for candidacy was accepted and another two years – plus lots of education, programming, and paperwork – before the board conducted a site visit at Fyzical’s Bonita Springs, Florida location and approved the program, making Fyzical the 117th physical therapy orthopedic residency in the United States.
11. Dr. Douglass added, “We started with a vision to become the country’s best orthopedic residency program, and then committed to the extensive application process. It was a serious undertaking. There is so much education to be done, and it’s a significant financial commitment. That’s why there are so few programs. We had to prove that we have the resources and knowledge to support the program. When the board conducted its site visit, they were impressed by how well equipped we are, and they are eager for us to expand the program across our system.”
12. At the time of the announcement, Fyzical’s residency program was only offered at the franchise’s Bonita Springs location. Fyzical plans to roll out its residency program across its system.
13. Fyzical Therapy & Balance Centers was founded in 2012 by Jim Abrams, who was an original franchisee of Weight Watchers. Abrams also founded several other successful national franchise brands, including Service Experts, Clockwork Home Services, One-Hour Heating and Air Conditioning, Benjamin Franklin Plumbing, and Mr. Sparky Electrical Services.
14. He started Fyzical Therapy to offer physical therapy, balance retraining and fall prevention, sports rehabilitation, and individualized fitness and wellness programs. Abrams had acquired a company called the Werner Institute of Balance and when franchising started in 2013, the company rebranded to Fyzical Therapy & Balance Centers.
15. Within a few short years, Fyzical Therapy & Balance Centers grew to more than 100 locations. By 2019, the company had more than 400 locations in operation. Today, there are Fyzical Therapy & Balance Centers across the United States, a majority of which are franchises with a few dozen company-owned locations.
Entrepreneur’s Franchise 500
16. Fyzical Therapy & Balance Centers ranked No. 66 on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Fyzical Therapy & Balance Centers 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 Fyzical Therapy & Balance Centers’ 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
- Outlets at the Start of the Year: 246
- Outlets at the End of the Year: 318
- Net Change: +72
- Outlets at the Start of the Year: 318
- Outlets at the End of the Year: 382
- Net Change: +64
- Outlets at the Start of the Year: 382
- Outlets at the End of the Year: 388
- Net Change: +6
- Outlets at the Start of the Year: 22
- Outlets at the End of the Year: 10
- Net Change: -12
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 19
- Net Change: +9
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 30
- Net Change: +11
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
Part 1 – Company-Owned Centers
- Fyzical does not own or operate any Fyzical Center. For the purposes of Item 19, Centers owned by Fyzical’s affiliates are referred to as “Company-Owned Centers”.
- As of December 31, 2019, Fyzical’s affiliates owned 19 Centers. Of these 19 Centers, in the fiscal year 2019, Fyzical’s affiliates owned 10 Centers for the entire year, 4 Centers for 10 months, and 5 Centers for 2 months or less.
- As of December 31, 2020, Fyzical’s affiliates owned 30 Centers. Of these 30 Centers, in the fiscal year 2020, Fyzical’s affiliates owned 19 Centers for the entire year, 2 Centers for 10 months, 4 Centers for 5 months, and 5 Centers for 2 months or less.
- The following charts demonstrate financial performance information of (i) the 14 Company-Owned Centers that Fyzical’s affiliates owned and operated for at least 10 months of 2019 (“2019 Reporting Centers”), and (ii) 21 Company-Owned Centers that Fyzical’s affiliates owned and operated for at least 10 months of 2020 (“2020 Reporting Centers”).
A. Gross Revenue and EBITDA for Reporting Centers