Structural Elements Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$693,450 - $1,448,815
Franchise Fee
$55,000
Total US Locations
3
Business Summary
Structural Elements Franchising, LLC operates standalone clinics that provide specialized orthopedic and healthcare services. These clinics utilize a blend of Eastern and Western treatment methods, including manual therapy, acupuncture, and exercise services, to promote whole-body wellness, longevity, and performance. Each Structural Elements clinic also features a retail section selling branded apparel and supplements. The business model includes a multi-tiered franchise structure where Unit Franchisees develop and operate the clinics, which then house Micro-Franchisees who are qualified practitioners providing the therapeutic methods.
Corporate History
Structural Elements Franchising, LLC was formed in Maryland on August 26, 2015. Its affiliate, Structural Elements, LLC, operated the original Structural Elements Clinic in Hagerstown, Maryland from 2013 until January 2020, serving as the model for the franchise. Structural Elements Franchising, LLC began offering unit franchises for its clinics on April 30, 2016. It later expanded its franchise offerings to include Area Representative Businesses in April 2019 and Micro-Franchise Businesses in March 2019. In January 2020, another affiliate, SEF Development, LLC, took over the ownership and operation of the original Hagerstown clinic.
Financial Overview
Investment Range
$693,450 - $1,448,815
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$55,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$512,950
Equipment Costs (High)
$1,136,815
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Structural Elements Franchising, LLC experienced negative cash flow from operating activities in 2024, despite an increase in royalty, training, and brand fees compared to previous years. The company's ability to continue operations depends on the successful expansion of its franchise network and the performance of its franchisees. In February 2025, Structural Elements Franchising, LLC received $250,000 in additional funding from a related party to reduce its line of credit balance. Management believes the remaining borrowing capacity of approximately $286,000 as of February 25, 2025, along with efforts to increase the line of credit limit, will be sufficient for continued operations. However, the company's financial stability remains contingent on improved operating results exceeding costs.
Financing Details
Structural Elements Franchising, LLC does not offer any direct or indirect financing to its franchisees. Structural Elements Franchising, LLC will also not guarantee any notes, leases, or other financial obligations for its franchisees. Franchisees are expected to arrange their own financing through external sources.
Performance Metrics
Total US Locations
3
Franchised Units
2
Corporate Units
1
Avg Square Footage
6,000
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Structural Elements Franchising, LLC has no litigation history that is required to be disclosed in this document. This means Structural Elements Franchising, LLC has not been involved in any material litigation, such as lawsuits or legal proceedings, that would need to be reported to potential franchisees.
Bankruptcy History
Structural Elements Franchising, LLC has no bankruptcy history to report. This means that neither Structural Elements Franchising, LLC nor its current executive officers have been involved in any bankruptcy proceedings that would require disclosure in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Structural Elements Franchising, LLC franchisees must provide written notice of their intent to renew between six and twelve months before their current agreement expires. They must continue to occupy an approved location throughout the new 10-year term and have substantially complied with all material provisions of their agreement. Franchisees must have also timely met all monetary obligations to Structural Elements Franchising, LLC and its affiliates, not be in default, and agree to meet current franchisee qualifications and training requirements. Additionally, they are required to sign a general release, pay a renewal fee equal to 25% of the then-current initial franchise fee, and execute Structural Elements Franchising, LLC's current form of franchise agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Structural Elements Franchising, LLC provides comprehensive support before and after the clinic opens. Prior to opening, Structural Elements Franchising, LLC helps with site approval, offers a 4-day initial training program, grants access to its operations manuals, and provides consultation for build-out design. After opening, Structural Elements Franchising, LLC offers ongoing guidance through in-person visits, phone, email, and newsletters covering operational methods, accounting, pricing, and marketing strategies. Structural Elements Franchising, LLC also monitors compliance with its standards, offers additional on-site training (for a fee if requested or remedial), and provides updates to its System and Manuals. For advertising, Structural Elements Franchising, LLC requires a minimum spend on local marketing (an initial $15,000 within the first three months, then $1,500 monthly) and reviews all advertising materials. Structural Elements Franchising, LLC administers a Brand Building Fund and may establish regional marketing cooperatives. Furthermore, Structural Elements Franchising, LLC may provide leads for Micro-Franchisees and offers additional group training sessions through webinars and online Q&A. For technology, Structural Elements Franchising, LLC mandates the use of designated business management (Jane), EMR, and accounting (QuickBooks) software, along with specific computer hardware, and maintains independent administrative access to business data (excluding client treatment histories).
Initial Training Hours
90
Training Location
Hagerstown, MD or designated location
Ongoing Support
After opening, Structural Elements Franchising, LLC provides ongoing advice and guidance to its franchisees through various channels, including in-person meetings, phone calls, emails, and newsletters. This support covers operational methods, accounting procedures, pricing guidelines, and marketing and sales strategies. Structural Elements Franchising, LLC also conducts visits to monitor compliance with its standards and offers additional in-person consultation or remedial training at the franchisee's location, though a fee of $1,000 per half-day plus travel expenses may apply. Structural Elements Franchising, LLC makes changes and additions to the System and its operations manuals available to all franchisees. It reviews all advertising materials for local marketing efforts. Structural Elements Franchising, LLC administers a Brand Building Fund to increase brand awareness and may establish Regional Marketing Cooperatives in the future. Additionally, Structural Elements Franchising, LLC may provide leads for potential Micro-Franchisees to operate within the clinic and offers supplementary group training sessions, including webinars and online Q&A forums. Franchisees and their designated managers may also be required to attend an annual convention for up to three days.
Franchise Requirements
Ideal Candidate Profile
Structural Elements Franchising, LLC seeks Unit Franchisees who are capable of developing, owning, and operating a standalone clinic offering specialized orthopedic and healthcare services. While the Designated Manager for the clinic is not required to be a licensed medical professional, they must provide direct full-time supervision of the clinic's daily operations. The franchisee or Designated Manager must successfully complete the initial Owner Training Program and Pre-Opening Training Program. Franchisees should be prepared to manage a facility that houses various licensed Micro-Franchisees (Qualified Professionals) and provide administrative support to them, indicating a need for strong organizational and business management capabilities. The FDD also highlights the importance of financial responsibility and compliance with health care regulations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Each Structural Elements Franchising, LLC franchise is granted a Designated Area that is non-exclusive. This area typically contains a population of approximately 150,000 people, determined using the most recent census data, and is made up of one or more continuous zip codes. Structural Elements Franchising, LLC reserves the right to adjust the definition of the Designated Area if its population increases by 50%, but the zip code containing the authorized clinic location will always remain part of the territory.
Staffing Notes
Structural Elements Franchising, LLC requires that each Franchised Clinic always be under the direct, full-time supervision of a Designated Manager. This Designated Manager, who can be the franchisee if an individual, or an individual selected by the franchisee if an entity, is not required to be a licensed medical professional (such as a physical therapist or acupuncturist). Franchisees must keep Structural Elements Franchising, LLC informed of their Designated Manager's identity and, if the manager leaves, promptly appoint a new one and send them to the next scheduled initial training program. An interim manager experienced in clinic operations must be designated until the new manager completes training. Structural Elements Franchising, LLC also specifies that the clinic must house one or more Micro-Franchisees (Qualified Professionals) on-site and may have an Area Representative, and the Unit Franchisee is responsible for providing administrative and other support services to these practitioners. If a clinic's monthly revenues decline significantly for three consecutive months after its first year, Structural Elements Franchising, LLC may require an owner with at least 25% equity in the franchisee entity to become the Designated Manager.