Risk Score
Pending analysis
Investment Range
$161,800 - $541,500
Franchise Fee
$24,500
Min Cash Required
$30,000
Total US Locations
1
Business Summary
ScoliCare clinics specialize in the non-surgical treatment of scoliosis for children and adults. These clinics operate in a building designed with ScoliCare's specific interior and exterior trade dress, offering services such as observation, physical therapy, exercise, bracing, and complementary and alternative therapies, which include proprietary and non-proprietary products. ScoliCare requires primary healthcare clinicians employed at the franchised business to be licensed practitioners in physiotherapy, chiropractics, osteopathy, or as medical doctors, and to complete ScoliCare's scoliosis-specific training programs.
Corporate History
ScoliCare Franchising LLC was formed in Delaware on April 19, 2021, and began offering franchises in June 2021. The company specializes in granting and supporting franchises for ScoliCare clinics dedicated to scoliosis treatment. Its parent company, Lasio Rhinus Holdings Inc., was also formed in April 2021. ScoliCare IP Pty Ltd, an Australian affiliate established in December 2020, owns the proprietary marks, licensing them to ScoliCare US IP LLC, which then sub-licenses them to ScoliCare Franchising LLC. Another Australian affiliate, ScoliCare Pty Ltd, also formed in December 2020, sells specialized products like ScoliBrace to franchisees.
Financial Overview
Investment Range
$161,800 - $541,500
Franchise Fee (Low)
$24,500
Franchise Fee (High)
$49,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
4.5%
Equipment Costs (Low)
$28,000
Equipment Costs (High)
$338,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
ScoliCare's financial condition, as noted in the special risks section and reflected in its financial statements, raises questions about its financial ability to provide services and support to its franchisees. The company reported a net loss and limited cash flow from operations for the fiscal year ended June 30, 2023. Additionally, unaudited financial statements for February 29, 2024, show negative equity and continued losses, indicating ongoing financial challenges for ScoliCare Franchising LLC in supporting its franchise system.
Financing Details
ScoliCare does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for arranging their own funding, and ScoliCare does not guarantee any notes, leases, or other obligations for them.
Performance Metrics
Total US Locations
1
Franchised Units
1
Corporate Units
0
Avg Square Footage
1,900
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ScoliCare has no litigation history to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
ScoliCare has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, ScoliCare franchisees must provide written notice of their intent to renew 6 to 12 months before the current term expires. They must remodel and refurbish their clinic to meet ScoliCare's then-current standards for new clinics. Franchisees must also be in full compliance with all terms of their franchise agreement, have paid all financial obligations to ScoliCare and its affiliates, and be current with all vendors. Additionally, they must sign ScoliCare's then-current form of franchise agreement (which may have different terms, including higher fees), pay a renewal fee of the greater of $12,250 or 25% of the then-current initial franchise fee, and sign a mutual general release. Lastly, the franchisee and their personnel must meet current qualification and training requirements, and they must demonstrate the right to occupy the approved location for the entire renewal term.
Training & Support Program
Franchisor Assistance
ScoliCare provides pre-opening assistance, including initial training for up to four individuals at its headquarters or online, standard layout and design specifications for the clinic, and site selection and lease review assistance. ScoliCare may also evaluate the business before opening and will send a representative to be present at the grand opening. They will assist in developing the grand opening marketing program and lend one copy of the Brand Manual. Ongoing assistance includes providing periodic marketing, management, and operational support, conducting additional training programs as needed, reviewing and approving marketing materials, and administering the Marketing Fund.
Initial Training Hours
167.5
Training Location
Franchisor headquarters, online, or other designated locations, including on-site at the franchisee's business.
Ongoing Support
ScoliCare offers ongoing assistance in marketing, management, and operation of the franchised business. This includes conducting additional training programs as beneficial to the business, and providing periodic assistance through representatives who will visit the clinic and offer operational advice. ScoliCare also reviews and approves marketing materials and administers the Marketing Fund. Franchisees are also required to attend conventions and meetings.
Franchise Requirements
Ideal Candidate Profile
ScoliCare seeks franchisees who, if operating as an entity, must appoint an Operating Owner. This Operating Owner must supervise the business, hold at least a 51% ownership stake (unless approved otherwise), possess qualifications acceptable to ScoliCare, complete ScoliCare's training program, and have authority over all business decisions, including the power to bind the franchisee in dealings with ScoliCare. While active participation is encouraged, personal direct operation of the business is not strictly mandated. However, all primary healthcare clinicians employed at the ScoliCare clinic must be licensed in physiotherapy, chiropractics, or osteopathy, or as a medical doctor, and must successfully complete ScoliCare's specialized training programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Staff Count
2
Territory Size Requirements
ScoliCare Protected Territories vary in size based on location and population density, but typically cover an area with a minimum population of 700,000 residents, as determined by the most recent U.S. Census data.
Staffing Notes
ScoliCare clinics require a competent and conscientious staff. At a minimum, two individuals must be employed, including an Operating Owner or a Certified Manager, who must complete ScoliCare's initial training program. The Operating Owner, if an entity, must hold at least a 51% interest. Additional trained personnel, such as physical therapists and clinicians, are also expected to complete specific training. All staff must adhere to ScoliCare's dress code and brand standards for personal appearance, and franchisees are responsible for maintaining a cooperative work environment.