Risk Score
Pending analysis
Investment Range
$414,225 - $521,600
Franchise Fee
$49,500
Total US Locations
20
Business Summary
OrthoLazer Centers specialize in offering Multiwave Locked System (MLS) laser therapy for pain treatment, delivered by licensed medical professionals. OrthoLazer provides a system for establishing and managing the non-medical business and administrative services of these centers. Franchisees can operate a single OrthoLazer Center or develop multiple centers within a defined geographic area. The system includes guidelines for building design, equipment, operational standards, and use of the OrthoLazer trademark.
Corporate History
OLC Development, Inc. was originally formed as a Delaware limited liability company on April 5, 2019. The company later converted to a corporation in July 2024. OrthoLazer began offering franchises for its centers in October 2019, focusing exclusively on this line of business and has not offered franchises in any other industries.
Financial Overview
Investment Range
$414,225 - $521,600
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$49,500
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$291,000
Equipment Costs (High)
$364,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, OLC Development, Inc., has raised concerns about its financial condition, stating that its financial ability to provide services to franchisees is in question. The company has a significant accumulated deficit in its members' equity, totaling over $1.6 million as of December 31, 2023, and reported net losses of $689,570 in 2023 and $425,487 in 2022. It also has negative working capital, with current liabilities far exceeding current assets. To address these issues, OrthoLazer is undergoing restructuring to become a C-Corporation and is actively pursuing a $7 million capital raise. A new Chief Executive Officer is expected to secure $3.5 million of this capital, and the company is implementing cost-cutting measures and aiming to accelerate franchise sales and recurring royalty revenue.
Financing Details
OrthoLazer does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations that franchisees might incur.
Performance Metrics
Total US Locations
20
Franchised Units
20
Corporate Units
0
Avg Square Footage
1,500
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
OrthoLazer has no litigation to report. The company has not been involved in any material legal proceedings that require disclosure in this section of the document.
Bankruptcy History
OrthoLazer has no bankruptcy history to disclose. Neither the franchisor nor its executives have been involved in any bankruptcy proceedings that require reporting in this section.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their OrthoLazer franchise agreement, franchisees must notify OrthoLazer in writing between 180 and 365 days before their initial term ends. They must also renovate and modernize their business premises to meet OrthoLazer's then-current standards, ensure they are not in default of their existing franchise agreement, and pay all outstanding amounts to OrthoLazer. Franchisees must also prove they have the right to occupy their current location for the renewal term or get approval for a new site, sign a new franchise agreement (which might have different terms such as higher royalty fees, increased advertising contributions, or a smaller territory), sign a general release of claims against OrthoLazer, comply with current qualification and training requirements, and pay a $5,000 renewal fee.
Training & Support Program
Franchisor Assistance
OrthoLazer provides comprehensive assistance both before and after the opening of a franchisee's center. Before opening, OrthoLazer helps with reviewing and approving the proposed site, defining the designated territory, and offers pre-opening and opening assistance through its representatives. Franchisees also receive an electronic copy of the operations manual and access to approved suppliers for equipment, supplies, and products. Initial training is provided for the center's owners and one business manager. Once open, OrthoLazer allows franchisees to use its trademarks and offers advice and assistance on implementing the system and managing the non-medical aspects of the business upon request. The company continues to provide access to the operations manual, offers additional and ongoing training programs, and conducts periodic inspections or audits of the centers. OrthoLazer also indemnifies franchisees for authorized use of its trademarks and reviews and approves their advertising and promotional materials.
Initial Training Hours
94
Training Location
Corporate headquarters in Warsaw, Indiana, at one of OrthoLazer's operating centers, at the franchisee's center, and through electronic training delivery.
Ongoing Support
After the initial opening, OrthoLazer provides ongoing support by offering advice and assistance on implementing the system and managing the non-medical aspects of the franchised business upon request. The company also provides additional, ongoing, and supplemental training programs as deemed appropriate, and conducts periodic inspections and audits of the OrthoLazer Centers. Franchisees continue to have access to the electronic operations manual.
Franchise Requirements
Ideal Candidate Profile
OrthoLazer seeks professional legal entities, specifically Professional Entities, that are permitted to practice medicine in the state where the OrthoLazer Center will be located. These entities must meet OrthoLazer's qualifications and be prepared to invest the necessary time and effort to establish and manage an OrthoLazer Center using its system. The Operating Owner and a Business Manager of the franchisee are required to be directly involved in the day-to-day operations and must use their best efforts to promote and enhance the business.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
4
Territory Size Requirements
OrthoLazer's Protected Territory is defined by the natural traffic and trade patterns of the approved site. OrthoLazer describes these territories using fixed geographical boundaries like streets, highways, zip codes, or counties. The specific geographic size of an OrthoLazer Protected Territory depends on several factors, including geographical boundaries, cultural demographics, household income, population count, age distribution, traffic and trip counts, daytime population, existing competition, housing density, and applicable permit and zoning regulations.
Staffing Notes
OrthoLazer estimates that typical staffing for an OrthoLazer Center includes three to four employees. These roles are expected to include an office manager, two laser technicians, and/or a receptionist/scheduler. OrthoLazer franchisees are responsible for hiring and training their own employees and other management personnel. The Operations Manual provides further guidance on staffing requirements, including specific roles like Office Manager, Qualified Laser Technicians, and Receptionist/Scheduler, and also covers cross-training.