Risk Score
Pending analysis
Investment Range
$250,100 - $600,080
Franchise Fee
$20,000
Min Cash Required
$100,000
Total US Locations
194
Business Summary
QC Kinetix offers franchises for businesses that provide non-surgical regenerative medicine services through licensed medical providers. These services primarily target musculoskeletal pain caused by injuries, arthritis, tendonitis, muscle tears, and ligament tears. Additionally, QC Kinetix has expanded its offerings to include hair restoration, low Testosterone treatment packages, and weight loss products and services. Franchisees operate under the QC Kinetix system in a distinctive and innovative environment, focusing on attendant non-clinical services. Depending on state laws, a franchisee may operate as a management services organization (MSO) that contracts with a professional corporation (PC) for clinical services, or directly as a PC if owned by clinical personnel.
Corporate History
QC Kinetix, legally known as QC Franchise Group LLC, was established on January 13, 2020, as a South Carolina limited liability company. The company began offering franchises for its non-surgical regenerative medicine businesses in December 2020. QC Kinetix operates and sells franchises for businesses that provide non-clinical services related to regenerative medicine. Its affiliates, which are commonly owned by the same individuals (Dr. Richard Schaffer, Justin Crowell, and Tyler Vail), include QC Holdings Group LLC (owner of the QC Kinetix trademarks), QC Kinetix, PC, and QC Kinetix LLC (which operate company-owned clinics similar to the franchises), Mathis Ferry Management, LLC (manages QCNC), QCK Management Group LLC (formerly provided franchisee business management services), Boxum Consulting LLC (provides employee recruiting services), QC Health Group, LLC (produces and sells supplements), and Arthrobotix Surgical Institute, LLC (which is exploring robotic joint surgery).
Financial Overview
Investment Range
$250,100 - $600,080
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$55,000
Minimum Cash Required
$100,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$54,500
Equipment Costs (High)
$239,480
Working Capital
$125,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
QC Kinetix's financial statements are audited and show a net income of $7,453,425 for the year ended December 31, 2023, a significant increase from $5,550,355 in 2022. The company's members' equity has shifted from a deficit of $(608,488) in 2022 to a positive equity of $1,362,937 in 2023, indicating an improvement in its financial standing. QC Kinetix reported current assets of $7,693,337 and current liabilities of $3,774,053 for 2023, demonstrating a healthy working capital position. The auditors issued an unqualified opinion, affirming that the financial statements fairly represent the company's financial health. The company also holds a substantial amount of deferred revenue, totaling $14,830,243 in 2023, which represents initial franchise fees to be recognized over the 10-year term of the franchise agreements. QC Kinetix renewed a $2,000,000 revolving line of credit in January 2023, which had a $0 outstanding balance at the end of 2023 and is secured by all company assets. In 2023, QC Kinetix paid $584,062 in state-level income taxes on behalf of its members.
Financing Details
QC Kinetix does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or obligations for the franchisee. Franchisees are solely responsible for obtaining their own financing arrangements.
Performance Metrics
Total US Locations
194
Franchised Units
182
Corporate Units
12
Avg Square Footage
2,100
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
QC Kinetix currently has two pending legal cases. The first case, Robertson v. QC Franchise Group LLC et al, was filed in November 2023 in the United States District Court for the Central District of Illinois. The plaintiff, a former patient, alleges that QC Kinetix and one of its franchised clinics violated the Illinois Consumer Fraud Act. The accusations include advertising costly treatments based on non-FDA-approved drugs without clear disclosure and arranging high-interest financing for these treatments. The plaintiff is seeking actual and punitive damages, injunctive relief, and attorney's fees, and aims to bring this as a class action. A motion to dismiss filed by QC Kinetix is currently pending. The second case, Dennis D. Mckinzie and Cindy Mckinzie v. QC Kinetix Franchise Group LLC et al, was filed in March 2024 in a Texas District Court. In this lawsuit, a former patient and her spouse are suing a QC Kinetix franchisee, its owners, QC Franchise Group LLC, an endorsing athlete, and a former employee. They allege fraud due to purported false statements on the QC Kinetix website and in advertisements regarding the effectiveness of regenerative medicine. The plaintiffs are seeking various money damages, including compensatory and special damages. QC Franchise Group LLC plans to contest these claims.
Bankruptcy History
QC Kinetix has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, QC Kinetix franchisees must provide written notice between six and twelve months before the current term expires. They must be in full compliance with the franchise agreement and any other agreements with QC Kinetix, and must have punctually met all monetary obligations throughout the previous term. Franchisees are required to sign QC Kinetix's then-current franchise agreement, which may have different terms, and pay a $3,000 renewal fee. They also need to meet current training and qualification requirements, execute a general release of any and all claims against QC Kinetix and its affiliates, and upgrade or refurbish their facility (both interior and exterior) to meet the then-current brand standards, including updating graphics, signage, equipment, and technology, all at the franchisee's expense.
Training & Support Program
Franchisor Assistance
Before opening, QC Kinetix assists franchisees with reviewing proposed sites and leases. It provides guidance on obtaining permits and notifying state authorities (if applicable), and furnishes mandatory specifications for the business's architectural design, layout, equipment, furnishings, signage, computers, and security systems. An initial training program, lasting up to ten days, is provided for the franchisee and one additional individual, with no tuition fee, though franchisees cover their own travel and lodging. QC Kinetix also loans a copy of its confidential Operations Manual to franchisees. Ongoing assistance includes consulting on policies, equipment, and services, and advising on new developments in regenerative medicine. QC Kinetix offers additional on-site supervision and assistance as deemed necessary, with franchisees covering associated expenses. It conducts inspections of operations and inventory, provides updated specifications and approved vendor lists, and reviews franchisee-submitted advertising and promotional materials. Continuing education and national conventions are also offered, which franchisees may be required to attend, with associated fees and travel expenses.
Initial Training Hours
106
Training Location
Corporate headquarters in Charlotte, North Carolina, a company-owned unit, or a franchisee-owned unit
Ongoing Support
QC Kinetix provides ongoing support to franchisees through memos and newsletters that cover training topics relevant to the business. Franchisees and their staff may be required to complete additional refresher or continuing education training programs for up to five days per year. These programs can be conducted via telephone, webinars, video training, in-person sessions at designated locations, or at annual conferences. Franchisees may also be required to attend national business meetings or annual conventions, with a $1,000 per day fee assessed for non-attendance. QC Kinetix also offers continuous guidance and assistance to help resolve operational challenges, provides updated specifications and lists of approved vendors for equipment and products, and reviews advertising and promotional materials submitted by franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
QC Kinetix awards a protected territory based on a Designated Marketing Area (DMA), which is typically defined geographically by a city, town, county, or zip code, as determined by the Neilson Company. The territory's boundaries are set once a location is chosen and approved by QC Kinetix, and they will not be changed, even if the population increases or decreases. Factors such as economic strength, projected population growth within the territory, and the number of existing competitors are considered when determining the territory size. In major metropolitan areas, territories may be smaller and more densely populated. Franchisees are restricted from advertising or soliciting business outside their defined territory without prior written consent from QC Kinetix.