THE JOINT CHIROPRACTIC (UNIT)

Item 7 details a hefty initial investment of $254,250 to $520,800, including a $39,900 franchise fee, driven by build-out costs for these cash-pay clinics that franchisees either own directly or manage via professional corporations. Ongoing fees bite at 7% royalty (minimum $700/month), 2% brand fund (capping at 3%), and a flat $599/month technology fee, potentially straining slim-margin operations in a private-pay model targeting everyday back-pain sufferers. No Item 19 means no disclosed revenue or profit figures, forcing buyers to dig into alternatives like SBA loan data or peer benchmarks—especially with the system's history of bankruptcy, which could complicate financing.

System metrics show resilience: 696 franchised locations alongside 239 corporate ones fueled a jump from 712 total units in 2022 to 800 in 2023 (+12%), with 104 projected new units and 24 transfers signaling owner mobility. Yet 16 terminations raise flags, compounded by settled arbitration claims from franchisees alleging fraud, wrongful termination, and California law breaches. For a buyer eyeing healthcare franchising since 2010 from Scottsdale, AZ, this blend of scale and friction demands scrutiny of regional saturation and litigation reserves before committing to the model's high upfront hurdle.