Risk Score
Pending analysis
Investment Range
$200,800 - $361,720
Franchise Fee
$39,500
Total US Locations
143
Business Summary
ARCpoint Labs businesses provide full-service lab screening and testing services, along with other related services, to both commercial businesses and individual consumers. Their offerings include drug, alcohol, DNA, and clinical testing, as well as background screens, occupational health, corporate wellness services (including vaccines and physicals), regulatory compliance services, and telehealth. ARCpoint Labs operates through a physical retail location for 'Lab Operations' and also offers off-site and online services as 'Onsite/Online Operations'. The franchise targets various markets such as business-to-business, judicial, business-to-physician, and direct-to-consumer segments, leveraging proprietary software to facilitate affordable testing without insurance.
Corporate History
ARCpoint Franchise Group, LLC was established as a South Carolina limited liability company on February 11, 2005. The company initially offered franchises under the "AccuDiagnostics" name and mark from July 2005 until January 2010, focusing on drug, alcohol, and paternity DNA testing. Since January 2010, ARCpoint Franchise Group, LLC has solely offered franchises under the "ARCpoint" name. During the COVID-19 pandemic, the brand temporarily offered mobile and drive-through COVID-19 testing licenses, a program which is no longer available. ARCpoint Labs businesses provide a range of healthcare and safety services, including lab screening and testing for businesses and consumers. As of December 31, 2023, there were 138 franchised ARCpoint Labs Businesses in the United States, with no ARCpoint Labs Businesses directly operated by the franchisor itself, although affiliates do operate some.
Financial Overview
Investment Range
$200,800 - $361,720
Franchise Fee (Low)
$39,500
Franchise Fee (High)
$54,500
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$39,900
Equipment Costs (High)
$145,300
Working Capital
$63,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The franchisor's financial condition, as shown in its financial statements (Item 21), raises questions about ARCpoint Labs' ability to consistently provide the necessary services and support to its franchisees.
Financing Details
ARCpoint Labs does not offer any direct or indirect financing to franchisees. This means that ARCpoint Labs will not provide loans, guarantees for notes or leases, or any other financial obligations. Franchisees will need to secure all necessary funding independently.
Performance Metrics
Total US Locations
143
Franchised Units
138
Corporate Units
5
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Bankruptcy History
ARCpoint Franchise Group has no bankruptcy information required to be disclosed in this Item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their ARCpoint Labs franchise, ARCpoint Labs franchisees must provide written notice of their intent to renew 9 to 12 months before the initial term expires. They must be in continuous compliance with all material provisions of their franchise agreement and any other agreements with ARCpoint Labs. All monetary obligations owed to ARCpoint Labs or its affiliates must be paid on time, and they must not be in default of any third-party agreements (like with landlords or lenders). ARCpoint Labs franchisees need to secure the right to occupy their current (or an approved substitute) location for the new 10-year renewal term and provide proof of this right. If required by ARCpoint Labs, they must agree in writing to remodel their location to meet current brand standards within 3 months after the initial term ends. They must not have received more than two notices of default during the initial term. Franchisees must also meet ARCpoint Labs' current standards for new franchisees, including creditworthiness, capital access, and criminal history. They will need to sign ARCpoint Labs' then-current franchise agreement and related documents, which may include different royalty or brand fund contribution rates, but the territory size will generally remain the same unless it was initially larger than what new franchisees receive, in which case it may be reduced. A renewal fee of $5,000 is required, and franchisees must comply with current training qualifications (covering travel and actual training costs, but no additional fees for the training itself). Finally, ARCpoint Labs franchisees must execute a general release.
Training & Support Program
Franchisor Assistance
ARCpoint Labs provides comprehensive support to its franchisees, starting before they open and continuing throughout the life of their business. **Pre-opening Assistance:** Before or upon opening their Onsite/Online Operations, ARCpoint Labs franchisees receive initial training for the System, a license to use the brand's trademarks, a webpage, social media accounts, and an email address for business communications. They also get access to a downloadable confidential operations manual via an intranet portal and assistance in identifying operating assets, products, supplies, and establishing minimum standards and approved suppliers. For opening Lab Operations, ARCpoint Labs assists with site selection by providing criteria and introducing an approved real estate vendor at no cost. They review and accept the chosen site and require landlords to execute a specific lease addendum. Franchisees also participate in a New Owner Support Program, offering up to 40 hours of support, real estate site selection assistance, regular check-ins with an Onboarding team, calls, visits, and shadowing opportunities with existing owners, along with additional training on specific service lines. ARCpoint Labs provides mandatory and discretionary specifications for the business's design, layout, fixtures, equipment, and décor. **Ongoing Support:** During operation, ARCpoint Labs franchisees receive general guidance through various channels like telephone, webinars, e-mail, faxes, blogs, intranet, and newsletters, offering advice on authorized services, operational methods, system changes, best practices, accounting, and marketing strategies. A representative may visit the location for additional training (in-person or virtually) within 30 days of opening or upon request, though additional fees and expenses may apply for such visits. ARCpoint Labs continuously provides updated System Standards and confidential, proprietary information to aid in business operation. They maintain and administer a Brand Fund for system-wide advertising and promotion, and manage System Websites that include local pages for each franchisee. Franchisees are required to attend annual or semi-annual meetings, conventions, or seminars (typically one meeting per year, up to 5 days, with a $450 fee per person plus travel expenses) for networking and learning. They are also required to become members of the National Drug & Alcohol Screening Association (NDASA) in the first year, with annual attendance recommended (costs covered by the franchisee). ARCpoint Labs ensures employees are fully trained by certified trainers for specific roles, with costs for additional employee training.
Initial Training Hours
91
Training Location
Corporate headquarters in Greenville, South Carolina, online/web-based methods, and an assigned shadowing lab
Ongoing Support
After opening their ARCpoint Labs business, ARCpoint Labs franchisees receive ongoing assistance from the franchisor. This includes general guidance provided via telephone, webinars, email, facsimile, blog, intranet, and newsletters, covering topics such as authorized services, operational methods, system changes, best practices, protocols, accounting procedures, and marketing and sales strategies. ARCpoint Labs may charge a fee if this general guidance is used too frequently. A representative from ARCpoint Labs' operations team may visit the franchisee's location, either in person or virtually, within 30 days of opening, or at any time upon request or if deemed necessary, to provide additional training and operational advice. Such additional training may incur current training rates plus expenses. ARCpoint Labs provides ongoing updates and modifications to the System Standards and confidential, proprietary information to assist in business operations. The franchisor maintains and administers a Brand Fund for system-wide advertising, promotion, and marketing, and manages System Websites that include dedicated local pages for each franchisee. ARCpoint Labs franchisees are also required to attend annual or semi-annual meetings, conventions, or seminars (typically one meeting per calendar year, lasting no more than five days) for networking and industry updates, for which a $450 fee per person is charged, plus travel and living expenses. Additionally, franchisees, their Managing Owners, or Designated Managers must become members of the National Drug & Alcohol Screening Association (NDASA) during the first year of operation, with continued membership and annual conference attendance recommended, and franchisees are responsible for associated costs. Franchisees must ensure all their employees, except administrative and clerical staff, are fully trained by ARCpoint Labs certified trainers for their respective roles, with fees and expenses applying if ARCpoint Labs provides this additional employee training (e.g., $225 per person for CPC/BAT training, $125 per hour for on-site training plus travel expenses).
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
ARCpoint Labs territories are primarily defined based on a number of factors including geographic size and population of people and businesses. Generally, an ARCpoint Labs territory consists of approximately 10,000 businesses as of the franchise agreement signing date. However, the exact size can vary; in densely populated metropolitan areas, the territory may be considerably smaller, while in more rural areas, it could be significantly larger. Once established, the boundaries of an ARCpoint Labs territory are not adjusted, regardless of future population or business count changes.
Staffing Notes
An ARCpoint Labs Business must always be under the direct, full-time day-to-day supervision of the franchisee, a Managing Owner (if an entity, owning at least 25% and having voting power), or an approved Designated Manager. This individual must dedicate at least 35 hours per week to managing the ARCpoint Labs Business. For multi-unit franchisees, each ARCpoint Labs Business retail location requires its own Designated Manager working a minimum of 35 hours per week, in addition to the franchisee spending at least 40 hours per week overseeing all their ARCpoint Labs Businesses. All employees involved in specimen-collection services must complete specific ARCpoint-certified training, including video series, exams, mock collections, and proficiency demonstrations for DOT collections. These employees also need to be certified as Breath Alcohol Technicians (BAT) and Certified Professional Collectors (CPC). The initial training covers up to four individuals. Additional employees requiring BAT and CPC training will incur a fee of $225 per person. Administrative and clerical employees are exempt from certified trainer requirements. Franchisees may also need to hire licensed medical personnel, such as phlebotomists, medical assistants, nurses, or physicians, depending on state-specific regulations for clinical testing services.