Risk Score
Pending analysis
Investment Range
$245,250 - $543,000
Franchise Fee
$9,950
Total US Locations
970
Business Summary
The Joint Chiropractic offers franchises for clinics that provide cash-basis, private-pay chiropractic services to the public using a membership model. These clinics do not accept insurance for services. The business operates with two models: Franchised Clinics, where the franchisee owns and operates the chiropractic practice and employs staff (typically if the franchisee is a licensed chiropractor or in states without corporate practice of medicine restrictions), and Managed Clinics, where a separate chiropractic professional corporation owns and operates the practice, and the franchisee provides non-chiropractic management services.
Corporate History
The Joint Corp. was incorporated in Delaware on March 10, 2010. The Joint Chiropractic began offering franchises for its chiropractic clinics in the same year, 2010. The company also offered area representative franchises from 2011 to December 2013, and again from November 2016 to 2024, but no longer offers them. Since 2014, The Joint Chiropractic has also owned and operated, or in some cases managed, clinics in various states, alongside its franchising activities. The business model involves cash-basis, private-pay chiropractic clinics operating under a membership model, with two distinct approaches: Franchised Clinics and Managed Clinics, to comply with state-specific regulations on chiropractic practice ownership.
Financial Overview
Investment Range
$245,250 - $543,000
Franchise Fee (Low)
$9,950
Franchise Fee (High)
$39,900
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$97,600
Equipment Costs (High)
$295,500
Working Capital
$90,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Joint Chiropractic has an accumulated deficit of $75,498,000 as of March 31, 2025, and $69,752,197 as of December 31, 2024. In 2023, the company initiated plans to refranchise most of its company-owned or managed clinics, retaining a smaller number of high-performing ones. This refranchising plan was expanded in 2024 to include additional clinic markets, which The Joint Chiropractic considers a strategic shift that will significantly impact its operations and financial results. Auditors noted a valuation allowance of $10.9 million against deferred tax assets as of December 31, 2023, due to cumulative losses. The company also incurred significant litigation expenses, including a $1.5 million settlement for employment matters in 2024 and a $3.4 million settlement for a medical injury claim in February 2025, which impacted its liabilities and cash flow. Despite these challenges, the auditor's report for 2023 and 2024 expressed an unqualified opinion, indicating the financial statements fairly present the company's financial position.
Financing Details
The Joint Chiropractic does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
970
Franchised Units
845
Corporate Units
125
Avg Square Footage
1,200
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
1
Litigation Summary
The Joint Chiropractic previously faced one litigation case. A demand for arbitration was filed on July 7, 2015, by several former and current franchisees, alleging breach of contract, breach of implied covenant of good faith and fair dealing, wrongful termination, fraud, negligent misrepresentation, and violations of the California Franchise Investment Law. The Joint Chiropractic denied liability and filed counterclaims for breach of contract and guaranty, also seeking a declaratory judgment that terminations were proper due to the franchisees' failure to adhere to development schedules. The parties reached a settlement agreement on December 12, 2016, mutually disclaiming liability and wrongdoing. As part of the settlement, The Joint Chiropractic paid $800,000 (of which $600,000 was covered by its insurance carrier and $100,000 was paid through common stock shares to claimants and their counsel) and waived transfer fees for certain operating franchises. The arbitration was subsequently dismissed with prejudice.
Bankruptcy History
The Joint Chiropractic's SVP of Development, Craig Sherwood, held an executive role with GGI Holdings, LLC (the parent company of the Gold's Gym brand) when it filed a Chapter 11 bankruptcy proceeding on May 4, 2020. The United States Bankruptcy Court for the Northern District of Texas confirmed GGI Holdings' Plan of Reorganization in August 2020, and the proceedings concluded on September 9, 2020. This specific bankruptcy proceeding did not involve The Joint Chiropractic.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, The Joint Chiropractic franchisees must not be in default under any existing agreements and must provide timely notice of their intent to renew between 12 and 24 months before the current term expires. They are required to sign the then-current form of franchise agreement and all related documents, including a general release of claims. Franchisees must also pay a renewal fee equal to 25% of the standard, non-discounted initial franchise fee for a new clinic. Additionally, they must remodel their clinic and upgrade all furniture, fixtures, and equipment to meet The Joint Chiropractic's current standards and specifications, which may necessitate a new Clinic Design (incurring a $600 clinic design fee). Finally, franchisees are obligated to extend their lease for the full duration of the new renewal term.
Training & Support Program
Franchisor Assistance
Before a new THE JOINT® clinic opens, The Joint Chiropractic provides access to its operations manual, evaluates proposed sites, offers written specifications for required goods and services, and creates a Clinic Design. The franchisor reviews and approves construction plans, assists with grand opening marketing campaigns, and provides an initial training program for the managing owner and general manager, which includes 3 days of onsite training. Ongoing support from The Joint Chiropractic includes guidance and recommendations to improve clinic operations, periodic training programs, and maintenance of a corporate website with a local webpage for each clinic. The franchisor also administers a Brand Fund and licenses its proprietary office management software to franchisees. Optionally, The Joint Chiropractic may conduct periodic field visits, offer additional training, develop new retail items or services, negotiate favorable purchase agreements with suppliers, host conferences, and develop a call center program.
Initial Training Hours
50
Training Location
Scottsdale, Arizona
Ongoing Support
The Joint Chiropractic offers various ongoing support services to its franchisees. This includes periodic refresher or supplemental training courses for managing owners, general managers, and other employees, with remedial training available if a clinic is not operating in compliance. The franchisor provides ongoing guidance and recommendations to improve clinic operations, and staff are available by phone or email during business hours. The Joint Chiropractic also maintains a corporate website and creates a local webpage for each clinic. While not mandatory, the franchisor may conduct periodic field visits for onsite consultation. Franchisees must participate in system programs such as gift card, loyalty, and membership models. The franchisor may also host periodic conferences, which attendance is mandatory unless otherwise specified, and may establish a call center program that requires franchisee participation.
Franchise Requirements
Ideal Candidate Profile
The Joint Chiropractic seeks business-oriented individuals to open and operate clinics. Ideal candidates include licensed chiropractors who may directly own and operate a "Franchised Clinic," potentially benefiting from a "DC Path to Ownership Program" discount after working in a clinic for at least one year. For individuals who are not licensed chiropractors, particularly in states with corporate practice of medicine laws, the franchise offers a "Managed Clinic" model where the franchisee manages the business operations on behalf of a separate professional chiropractic corporation. In both models, the franchisee must designate a "Managing Owner" who is approved by The Joint Chiropractic, completes all required training, and holds at least a 5% ownership interest. While an onsite General Manager can cover daily operations, The Joint Chiropractic suggests that an onsite Managing Owner is ideal for ensuring quality standards, profitability, and overall success. All candidates must be prepared to comply with extensive healthcare laws and operational standards, and respect the professional judgment of licensed chiropractic staff regarding patient care. The franchise encourages a commitment to local advertising and active participation in the business's management.
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
Territory Size Requirements
The Joint Chiropractic defines its franchise territories to include between 10,000 and 25,000 households. This size is determined using data generated by ArcGIS mapping and analytics software. The franchisor reserves the right to modify these territory boundaries at the time of renewal based on then-current guidelines.
Staffing Notes
THE JOINT® clinics require a Managing Owner who has overall responsibility for the business and holds at least a 5% ownership interest, having completed all required training. A trained General Manager, approved by The Joint Chiropractic, may be hired to provide onsite management, allowing the Managing Owner to be off-site. At least one licensed chiropractor must be present at the clinic during all business hours, and all chiropractors must have credentialing reports. Franchisees are responsible for determining appropriate staffing levels, hiring, training, and supervising all other employees, who are considered the franchisee's employees. The Joint Chiropractic does not control daily employee activities, but employees must adhere to designated uniform and dress code standards. In cases of default or if a Managing Owner is absent, The Joint Chiropractic may appoint an Interim Manager to manage the clinic temporarily.