The Joint Chiropractic Franchise Continues Trend of Strong Unit Economics
Fast-growing chiropractic franchise releases Franchise Disclosure Document which details strong sales growth
According to the most recent Franchise Disclosure Document, The Joint Chiropractic® franchises are performing extremely well, despite the economic challenges brought on in the past year by the COVID-19 pandemic. According to Eric Simon, Vice President of Franchise Sales and Development for The Joint Chiropractic franchise, after the pandemic hit in March 2020, the company pulled its Item 19 financial performance representations.
“The state regulators were like, for obvious reasons, you can’t represent numbers based on 2019 when the whole world has changed—the whole model could’ve changed,” Simon said.
Just two months after the onset of the pandemic, The Joint Chiropractic rebounded. Deemed an essential business providing licensed chiropractic care in most areas in the country, the company’s clinics largely stayed open during shutdowns. In June 2020, The Joint Chiropractic released a preliminary Item 19 that showed it was not only able to weather the pandemic, but also thrive during a time of financial uncertainty.
“We were able to make our Item 19strong because we had huge support on every level of franchising, from the entire corporate office to our Regional Developers to our franchisees,” Simon said. “We had to make changes to our processes and protocols, our sanitization process was enhanced, and our marketing team made sure patients felt comfortable coming into the clinic.”
And despite all the financial struggles and hardships across many industries, The Joint Chiropractic franchises actually showed a growth of topline revenues. In fact, the franchise provided more detail than necessary that other companies avoided because its numbers were so strong.
*The Joint Chiropratic’s Item 19 for 2020 shows top quartile in 2020 at $777,608 and bottom quartiles averaging about $255,500. Out of the 448 clinics that reported sales, nearly 45% hit or exceeded the overall average of $488,771.
*Compare that to 2019, where top quartile sales averaged about $759,800 and bottom quartiles averaged around $263,800.
“What essentially jumps out at me are gross sales and topline sales,” Simon said. “If you can put that comparison in there, and in our case, it was a little higher than in 2019, fantastic, you don’t need to put 2019 and 2020 P&L info in there.”
Simon also highlighted that in the first 12 months of 2020, for cohorts of new clinics, ramp up was considerably higher than in previous years, reflected in Item 19 along with gross sales ramp-up information for the initial 12 months of operation for all franchised clinics opened from 2017 to 2020.
“The changes we made during COVID are going to stay because they worked really well,” he added.
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About The Joint Chiropractic
The Joint Chiropractic (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, the company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. With more than 600 locations nationwide and over eight million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. Named on Franchise Times “Top 200+ Franchises” and Entrepreneur’s “Franchise 500®” lists, The Joint Chiropractic is an innovative force, where healthcare meets retail.
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to certain professional chiropractic practices.