Chiroway Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$103,500 - $163,000
Franchise Fee
$15,000
Total US Locations
13
Business Summary
ChiroWay operates centers that offer salutogenic chiropractic services to individuals and families. The business uses the ChiroWay Chiropractic Methodology, known as Advanced Muscle Palpation Technique, and offers affordable monthly flat-fee subscriptions and per-visit payment options. ChiroWay targets state-licensed chiropractors or, in limited cases, students enrolled in an accredited Doctor of Chiropractic degree program who will manage a center for a licensed chiropractor.
Corporate History
ChiroWay Franchise, LLC was formed as a Minnesota limited liability company on May 3, 2012, and began offering franchises for ChiroWay Centers in June 2012. Before becoming a franchisor, its predecessor and affiliate, ChiroWay Of Woodbury, PLLC, a Minnesota professional limited liability company organized in February 2010, operated a ChiroWay Center since May 2010. In June 2012, ChiroWay Of Woodbury, PLLC transferred certain intellectual property and assets to ChiroWay Franchise, LLC. Additionally, ChiroWay Chiropractic, LLC, another affiliate formed in October 2020, provides chiropractic consulting services and offers branded apparel, publications, events, and coaching within the ChiroWay Network.
Financial Overview
Investment Range
$103,500 - $163,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$33,000
Royalty %
4%
Equipment Costs (Low)
$34,000
Equipment Costs (High)
$69,500
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
ChiroWay Franchise, LLC received an unqualified audit opinion for its financial statements for the years ended December 31, 2022, 2023, and 2024. However, the company has reported negative member's equity for each of these years, with a deficit of $116 in 2024, $7,794 in 2023, and $5,992 in 2022. The independent auditor's report did not include a going concern qualification, indicating no substantial doubt about ChiroWay's ability to continue as a going concern.
Financing Details
ChiroWay Franchise, LLC offers direct financing for a portion of the initial franchise fee. Franchisees may defer payment of up to half of the initial franchise fee for up to three years. This financing is provided through an installment promissory note with an annual interest rate of 8% if all payments are made on time. If a payment is missed or late, the interest rate increases to 12% per annum or the highest rate allowed by law. Payments are made in equal monthly installments over a term of up to 36 months, and prepayment is allowed without penalty on principal due dates in multiples of $100. ChiroWay may require authorization for automatic withdrawals from the franchisee's bank account for these payments. If payments are not made on time, or if the franchisee transfers their interest or defaults on the Franchise Agreement, the entire outstanding balance becomes immediately due. Owners of a franchisee entity must personally guarantee the note, but no specific security interest is required to obtain this financing.
Performance Metrics
Total US Locations
13
Franchised Units
12
Corporate Units
1
Avg Square Footage
975
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ChiroWay Franchise, LLC has no litigation history that is required to be disclosed in the FDD. ChiroWay Franchise, LLC, its predecessors, or its affiliates have not been involved in any material litigation, arbitration, or lawsuits.
Bankruptcy History
ChiroWay Franchise, LLC has no bankruptcy history to report. Neither ChiroWay Franchise, LLC nor its affiliates or executive officers have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their ChiroWay franchise, franchisees must notify ChiroWay in writing between 120 and 180 days before their current agreement ends. They must have fully complied with all material terms of their Franchise Agreement, including all financial obligations and operating standards. Franchisees are required to maintain possession of their center's premises or secure a new approved location within their protected area, and fund necessary remodels, modernizations, and redecorations to meet ChiroWay's then-current standards for new centers. The Managing Owner and all Licensed Chiropractors must keep their licenses current and successfully complete any new or refresher training programs required by ChiroWay. Additionally, franchisees must pay a $5,000 renewal fee and sign ChiroWay's then-current standard franchise agreement, which may have materially different terms and conditions. Franchisees and their Principal Owners must also sign a general release of claims against ChiroWay.
Training & Support Program
Franchisor Assistance
ChiroWay Franchise, LLC provides extensive support to its franchisees. Before opening, ChiroWay assists with center specifications, including design and layout, provides an initial marketing kit, offers a list of approved suppliers, and delivers an initial training program. Franchisees also gain access to the confidential ChiroWay Operating Systems Manual and proprietary software, receive a contact listing on the ChiroWay website, and benefit from weekly telephone consultations for the first three months after opening. Ongoing assistance includes online training, conference calls, and operational guidance at no additional charge. ChiroWay also provides additional consulting for a fee, updated operating materials, and maintains a national Marketing & Sales Fund to promote the brand. It assists with marketing and promotional materials and operates a single toll-free number or call center for the network.
Initial Training Hours
168
Training Location
Electronically, Woodbury, MN or the Center
Ongoing Support
After opening, ChiroWay Franchise, LLC provides ongoing support to its franchisees through online training sessions and conference calls designed for all ChiroWay franchisees. ChiroWay offers operational assistance as deemed appropriate without charge and can provide additional consulting services at an hourly rate upon request. Franchisees receive periodic updates and revisions to the ChiroWay Operating Systems Manual, including improvements to the ChiroWay Services. ChiroWay also maintains and administers a national Marketing & Sales Fund to promote the brand, assisting with marketing and promotional materials for the network, and operates a single toll-free number or call center. Additionally, ChiroWay conducts weekly telephone consultations for the first three months following a center's initial opening to assist with initial operations.
Franchise Requirements
Ideal Candidate Profile
ChiroWay Franchise, LLC seeks qualified individuals who are state-licensed chiropractors with a Doctor of Chiropractic (DC) degree. In limited cases, they will also consider students enrolled in accredited DC programs, though these individuals would initially manage a center for a licensed person or entity. The ideal Managing Owner, who must hold at least a 51% interest in the franchisee entity (if applicable) or be appointed by the board, is required to actively operate or manage the center on a full-time basis, overseeing daily operations and successfully completing all required training. This Managing Owner, unless a DC Student, must also be a Licensed Chiropractor and cannot engage in other significant management responsibilities that conflict with their ChiroWay obligations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Staff Count
1
Territory Size Requirements
ChiroWay defines its protected territories based on geographic radius. For centers located in urban or suburban areas, the protected territory is typically a 2-mile radius around the center. In rural areas, the protected territory expands to a 6-mile radius. However, the exact size is subject to adjustment based on factors such as natural boundaries (like highways and bodies of water), the demographics of the metropolitan area, and the specific size of the ChiroWay Center.
Staffing Notes
ChiroWay requires that each center be under the direct supervision of a Managing Owner, who must dedicate themselves to the role on a full-time basis, avoiding other significant management responsibilities that could conflict. Unless the franchisee is a DC Student, the Managing Owner must also be a Licensed Chiropractor. Each center must employ at least one Licensed Chiropractor at all times to supervise the provision of ChiroWay Services, and this individual must hold all necessary licenses and complete required training. If a Managing Owner cannot meet the Licensed Chiropractor qualification, ChiroWay may appoint a temporary manager. For DC Student franchisees, a Professional Corporation (P.C.) is responsible for employing and controlling the chiropractors and other professional staff who provide chiropractic services, while the DC Student franchisee manages non-chiropractic administrative and business support services.