The Joint Chiropractic franchise
A cash-basis, private-pay chiropractic clinic sold on a membership model that does not accept insurance; depending on state corporate-practice-of-medicine law the franchisee either owns and operates the clinic directly or manages it for a separate chiropractic professional entity.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — The Joint Corp.
- Document
- FDD 2026, issued 2026-06-15
- Item
- Item 15
- Page
- PDF p. 47
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 642016
The Managing Owner is not required to provide onsite management of your Clinic as long as a trained General Manager is onsite.
A designated Managing Owner must be approved by the franchisor, complete all required training and hold at least a 5% ownership interest, but need not be onsite provided a trained General Manager is. Either the Managing Owner or a trained General Manager must be present during all normal business hours. Other owners have no participation requirement. The franchisor states its view that having the Managing Owner onsite improves results.
What stands out
- Standard initial franchise fee is $39,900; total investment for one clinic runs $245,250 to $543,000, with the low figure resting on a 50% incentive that expired December 31, 2025.
- Royalty is the greater of 7% of gross sales or $700 a month, on top of a marketing fund fee currently 2% (capped at 3%), a local advertising commitment of the greater of 5% of sales or $3,000 a month, and a $599 monthly technology fee.
- Item 19 reports average 2025 gross sales of $563,514 and a median of $526,397 across 799 franchised U.S. clinics, with 43% at or above the average.
7 more observations
- Item 19 also reports profit: 492 self-selected clinics averaged $93,945 of net profit (16.2% of sales), median $75,780, with results from a $214,488 loss to a $721,366 profit.
- The profit group had operated an average of 85 months, and clinics that opened during 2025 were excluded from all Item 19 tables, so nothing in the disclosure shows first-year performance.
- Franchised outlets grew from 712 to 885 over 2023 to 2025, but 2025 brought 16 terminations after two years with none.
- Company-owned clinics dropped from 135 to 75 across the period, chiefly through 41 sold to franchisees during 2025; total system outlets fell by 7 in 2025.
- Item 12 states there is no exclusive territory, though the franchise agreement does protect a 10,000 to 25,000 household area, subject to captive-venue, acquisition and alternative-channel carve-outs.
- The owner need not work in the clinic, but a trained General Manager must be onsite whenever the Managing Owner is not, and the Managing Owner must hold at least 5%.
- Every owner and every owner's spouse must sign the Franchise Owner Agreement; the cover pages flag spousal liability and Arizona-only dispute resolution as special risks.
Things to verify
- Ask for the gross sales ramp-up data behind Item 19 Table C; the chart could not be read from the reviewed source and it is the only disclosure addressing first-year revenue.
- Confirm what the standard initial franchise fee will be at signing, since the 2025 half-price incentive that produced the $19,950 figure in Item 7 expired on December 31, 2025.
- Ask what portion of the 492 clinics in the net profit table also carry debt service or pay the owner a salary, since neither is deducted in the franchisor's net profit definition.
5 more questions
- Establish whether your state's corporate-practice-of-medicine law forces the Managed Clinic structure, and budget for the healthcare counsel needed to draft a compliant management agreement.
- Ask why 16 franchised clinics were terminated in 2025 after none in 2023 and 2024, and contact franchisees on the Exhibit F former-franchisee list.
- Note that some franchisees have signed confidentiality provisions limiting what they can tell you, so a small or evasive sample of references may not be representative.
- Model the $700 minimum monthly royalty and $3,000 minimum monthly local advertising spend against a slow ramp, since both are owed regardless of sales.
- Check clinic density near your proposed site against the two-year, ten-mile post-term non-compete, which attaches to any clinic in the system rather than only your own.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A franchisee of The Joint Chiropractic operates a cash-basis, private-pay chiropractic clinic on a membership model. The clinic does not accept insurance. Because many states restrict who may own a chiropractic practice, the franchisor runs two structures: licensed chiropractors and owners in permissive states own the clinic directly, while everyone else buys a Managed Clinic and provides management services to a separate chiropractic professional entity that employs the chiropractors. Clinics typically occupy 1,000 to 1,400 square feet of leased space.
The standard initial franchise fee is $39,900, and Item 7 puts total investment for one clinic at $245,250 to $543,000, although the low end of that range assumes a 50% signing incentive that expired at the end of 2025. Construction ($63,600 to $225,000), three months of additional funds ($75,000 to $105,000) and a mandatory $20,000 grand-opening spend are the largest line items; real estate purchase is excluded. Ongoing, franchisees pay a royalty of the greater of 7% of gross sales or $700 a month, a marketing fund contribution currently 2% and capped at 3%, a local advertising commitment of the greater of 5% of sales or $3,000 a month, and a technology fee of $599 a month. The franchisor discloses no minimum liquidity or net worth requirement.
Item 19 is unusually detailed and covers both sales and profit. Across 799 U.S. franchised clinics, calendar 2025 gross sales averaged $563,514 with a median of $526,397, ranging from $124,473 to $1,759,851; quartile averages run from $892,063 down to $307,458. A separate group of 492 clinics that submitted unaudited profit and loss statements averaged $93,945 of net profit on $578,201 of sales, a 16.2% margin, with a median of $75,780 and outcomes from a $214,488 loss to a $721,366 profit. What the tables do not show is early-stage performance: clinics that opened during 2025 were excluded from every table, the profit group had been open an average of 85 months, and the ramp-up chart that would address year one is an image whose figures were not readable in the reviewed source. Net profit as defined excludes taxes, depreciation, amortisation, debt service and any separately identified owner compensation.
The system is growing on the franchised side and shrinking on the company side. Franchised clinics went from 712 at the start of 2023 to 885 at the end of 2025, with 234 openings over three years. Exits accelerated in 2025: 16 terminations after none in the two prior years, plus 11 clinics that ceased operating for other reasons. Company-owned clinics fell from 135 to 75, mostly because 41 were sold to franchisees in 2025, so total system outlets declined by 7 that year. There are 139 signed agreements for outlets not yet open and 34 projected franchised openings next year. On the legal side, Item 3 lists four matters, three of them brought by the franchisor against former franchisees, and one 2015 franchisee arbitration settled in 2016 for $800,000. Owners and their spouses must guarantee the agreement, disputes are mediated and litigated in Arizona, and a two-year, ten-mile post-term non-compete applies.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 712 → 885 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $563,514 (disclosed) ÷ midpoint investment $394,125 = 1.43×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 90% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 16 years (since 2010) · 960 outlets · Item 3: 4 matter(s) disclosed · Item 4: bankruptcy disclosure present
- Multi-Unit Scalability
- Area development rights are available at the franchisor's discretion to franchisees who commit to at least 2 clinics. The Area Development Agreement sets a d… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: Single THE JOINT clinic, new build-out in leased premises (typically 1,000–1,400 sq ft)
$245,250–$543,000 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $39,900 Disclosed
Discount programs reduce the fee (Veterans $33,900; Multi-Clinic $29,900 for 2nd+ Clinic; DC Path to Ownership $20,000; 2025 Sales Incentive 50% off); none is the standard new single-Clinic rate. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $40,900 Derived
|
| Total initial investment — low | $245,250 Disclosed
Includes the $19,950 discounted franchise fee assumption; at the standard $39,900 fee the low end of the range would be higher. |
| Total initial investment — high | $543,000 Disclosed
|
| Midpoint of range | $394,125 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The Joint Corp.; we do not fill gaps with estimates or third-party figures. The cover pages, Item 1, Item 5 and Item 7 state no minimum liquid capital requirement. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The Joint Corp.; we do not fill gaps with estimates or third-party figures. No minimum net worth requirement for franchisees is stated in the reviewed source. |
The Item 7 table assumes leased premises and excludes any purchase of real estate; the franchisor states the cost of buying real estate varies too widely to estimate. Both column totals foot exactly to $245,250 and $543,000. Additional funds cover three months of operation. Roughly 30% of the purchases and leases needed to open, and about 15% of ongoing operating expenses, must come from the franchisor or designated suppliers (Item 8). A second Item 7 table covers area development rights for 2 to 5 clinics: $255,250 to $583,000, which is the single-clinic investment plus a development fee of $10,000 per additional clinic committed.
Item 7 line items (18)
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee — Low end assumes the 50% 2025 sales incentive, which expired December 31, 2025. | $19,950 | $39,900 |
| Training Expenses — Food, lodging and incidentals for 1–2 attendees, estimated at about $350 per person per day; travel excluded. | $3,500 | $5,000 |
| Lease & Utility Deposits | $3,700 | $5,800 |
| Rent (3 months) — Assumes leased premises; monthly rent estimated at $3,000–$9,000. | $9,000 | $27,000 |
| Clinic Design Fee — Paid to the franchisor at signing. | $1,000 | $1,000 |
| Architect Fee | $8,500 | $20,000 |
| Construction — Assumes no landlord tenant-improvement allowance. | $63,600 | $225,000 |
| Signage | $6,000 | $12,000 |
| Technology Systems | $6,000 | $11,000 |
| Chiropractic & Other Professional Equipment | $7,000 | $22,500 |
| Office Furniture & Equipment | $15,000 | $25,000 |
| Uniforms & Office Supplies | $1,500 | $3,000 |
| Business Licenses/Permits | $300 | $3,000 |
| Chiropractor Credentialing — About $100 per report; reports must be refreshed at least annually. | $200 | $300 |
| Professional Fees — High end assumes a Managed Clinic structure; low end assumes a Franchised Clinic. | $3,000 | $8,200 |
| Grand Opening Advertising — A minimum of $20,000 must be spent over the 150 days beginning 90 days before opening; it does not count toward the local advertising commitment. | $20,000 | $25,000 |
| Insurance Premiums — Three months of required coverage. | $2,000 | $4,300 |
| Additional Funds (3 months) — Covers first-quarter payroll (excluding owner draws), $9,000 of local advertising, $1,797 of technology fees, utilities, HIPAA tools and working capital. | $75,000 | $105,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — The Joint Corp. (table begins PDF p. 25) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Area Development Agreement, 2–5 clinics (first clinic plus $10,000–$40,000 development fee) | $255,250 | $583,000 | — |
Ongoing fees
FDD Item 6Royalty
7% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — The Joint Corp.
- Document
- FDD 2026, issued 2026-06-15
- Item
- Item 6
- Page
- PDF p. 20
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 642016
Greater of 7% of Gross Sales or $700 per month
The standard royalty is the greater of 7% of Gross Sales or $700 per month, so the minimum applies regardless of sales. Reporting periods are twice monthly. A ramp-up incentive (3% for months 1–12 and 5% for months 13–24) was available only to clinics that opened during 2025; clinics opening after December 31, 2025 are not eligible. Gross Sales are defined broadly and include amounts invoiced but not collected, and, for a Managed Clinic, management fees and the professional entity's revenue.
Brand advertising fund
2%–3% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — The Joint Corp.
- Document
- FDD 2026, issued 2026-06-15
- Item
- Item 6
- Page
- PDF p. 20
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 642016
National Marketing Fund contribution, currently 2% of Gross Sales and capped at 3%; the franchisor may raise it to the cap on 30 days' notice. Franchisees have no vote over how the fund is administered or spent.
Local marketing
5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — The Joint Corp.
- Document
- FDD 2026, issued 2026-06-15
- Item
- Item 6
- Page
- PDF p. 20
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 642016
Local Advertising Commitment is the greater of 5% of Gross Sales or $3,000 per month, spent with third parties and measured on a rolling six-month basis. It is in addition to the National Marketing Fund fee. A shortfall can trigger a charge equal to 10% of the deficiency, paid into the marketing fund.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 7% of gross sales Disclosed
The standard royalty is the greater of 7% of Gross Sales or $700 per month, so the minimum applies regardless of sales. Reporting periods are twice monthly. A ramp-up incentive (3% for months 1–12 and 5% for months 13–24) was available only to clinics that opened during 2025; clinics opening after December 31, 2025 are not eligible. Gross Sales are defined broadly and include amounts invoiced but not collected, and, for a Managed Clinic, management fees and the professional entity's revenue. The standard royalty is the greater of 7% of Gross Sales or $700 per month, so the minimum applies regardless of sales. Reporting periods are twice monthly. A ramp-up incentive (3% for months 1–12 and 5% for months 13–24) was available only to clinics that opened during 2025; clinics opening after December 31, 2025 are not eligible. Gross Sales are defined broadly and include amounts invoiced but not collected, and, for a Managed Clinic, management fees and the professional entity's revenue. |
|---|---|
| Advertising / brand fund | 2%–3% of gross sales Disclosed
National Marketing Fund contribution, currently 2% of Gross Sales and capped at 3%; the franchisor may raise it to the cap on 30 days' notice. Franchisees have no vote over how the fund is administered or spent. National Marketing Fund contribution, currently 2% of Gross Sales and capped at 3%; the franchisor may raise it to the cap on 30 days' notice. Franchisees have no vote over how the fund is administered or spent. |
| Required local marketing | 5% of gross sales Disclosed
Local Advertising Commitment is the greater of 5% of Gross Sales or $3,000 per month, spent with third parties and measured on a rolling six-month basis. It is in addition to the National Marketing Fund fee. A shortfall can trigger a charge equal to 10% of the deficiency, paid into the marketing fund. Local Advertising Commitment is the greater of 5% of Gross Sales or $3,000 per month, spent with third parties and measured on a rolling six-month basis. It is in addition to the National Marketing Fund fee. A shortfall can trigger a charge equal to 10% of the deficiency, paid into the marketing fund. |
| Technology / software | $599/month Disclosed
Currently $599 per month, subject to increase on 30 days' notice. It covers the franchisor's proprietary office management software (also the point-of-sale and electronic health records system) plus AXIS, FranConnect, MicroStrategy and email, and an administrative fee. It excludes amounts paid directly to third parties. Currently $599 per month, subject to increase on 30 days' notice. It covers the franchisor's proprietary office management software (also the point-of-sale and electronic health records system) plus AXIS, FranConnect, MicroStrategy and email, and an administrative fee. It excludes amounts paid directly to third parties. |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The Joint Corp.; we do not fill gaps with estimates or third-party figures. Item 6 lists a cooperative advertising fee but states only that the amount is set by the franchisor or the cooperative; no rate or dollar amount is disclosed. Cooperative fees are credited against the Local Advertising Commitment, and company-owned outlets vote alongside franchised outlets. |
| Transfer fee | $2,500–$15,000 one-time Disclosed
$2,500 for a completed Permitted Transfer, $5,000 for a transfer to a clinic's chiropractor under the DC Path to Ownership Program, and $15,000 for other completed transfers. A transfer that does not close costs the lesser of $5,000 or the franchisor's evaluation expenses. Broker commissions the franchisor pays are also reimbursed by the seller. $2,500 for a completed Permitted Transfer, $5,000 for a transfer to a clinic's chiropractor under the DC Path to Ownership Program, and $15,000 for other completed transfers. A transfer that does not close costs the lesser of $5,000 or the franchisor's evaluation expenses. Broker commissions the franchisor pays are also reimbursed by the seller. |
| Renewal fee | 25% (see basis) Disclosed
25% of the then-current standard initial franchise fee, calculated without applying any discount. A pro-rated renewal fee also applies when a buyer of an existing clinic elects a full 10-year term instead of assuming the seller's remaining term. 25% of the then-current standard initial franchise fee, calculated without applying any discount. A pro-rated renewal fee also applies when a buyer of an existing clinic elects a full 10-year term instead of assuming the seller's remaining term. |
| Royalty + ad fund (% of sales) | 9% Derived
|
Fee schedule (31 fees; 18 verified against the source, 13 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty Fee | 7% of gross sales (min $700/monthly) | monthly | Yes | verified (2-pass) | Item 6, p. 20 | A temporary ramp-up (3% of Gross Sales for months 1-12, 5% for months 13-24, then standard) applies only to clinics that opened during 2025; not available to clinics opening after Dec 31, 2025 or to open clinics purchased from the franchisor/affiliate/another franchisee. Reported to the franchisor via bimonthly Gross Sales reports. |
| National Marketing Fund Fee | 2%–3% of gross sales | monthly | Yes | verified (2-pass) | Item 6, p. 20 | Franchisees have no vote over NMF administration, marketing-material creation/placement, or the fee amount. |
| Local Advertising Commitment | 5% of gross sales (min $3,000/monthly) | monthly | Yes | verified (2-pass) | Item 6, p. 20 | A shortfall against the commitment may trigger a charge of 10% of the deficiency, paid into the NMF. |
| Cooperative Advertising Fee | Not stated | varies | Conditional | verified (2-pass) | Item 6, p. 20 | Applies only where a regional cooperative exists; company-owned and franchised outlets vote alike, and a fee increase needs a franchised-outlet majority vote if most outlets in the cooperative are company-owned. |
| Technology Fee | $599 | monthly | Yes | verified (2-pass) | Item 6, p. 21 | May increase on 30 days' notice depending on the franchisor's fees and costs. |
| Training Fee | $1,000 | per event | No | verified (2-pass) | Item 6, p. 21 | Charged for training delivered after the clinic opens: post-opening initial training, retraining after a failed attempt, remedial training, requested additional training, or refresher/supplemental training. |
| Conference Registration Fee | $1,000 | per event | Yes | verified (tie-break) | Item 6, p. 21 | Attendance is mandatory unless the franchisor designates it optional or waives the requirement for good cause; the fee is still owed if a franchisee skips a required conference without a waiver. Distinct Item 6 row from the Training Fee, which carries the same $1,000 per person per day rate. |
| System Program Fees | $200 | monthly | Yes | verified (2-pass) | Item 6, p. 21 | Not currently charged; would apply only if and when the franchisor establishes such a program and requires franchisee participation. |
| Call Center Program | $200 | monthly | Yes | verified (2-pass) | Item 6, p. 21 | Not currently imposed; would apply only if the franchisor establishes a call center program. |
| Product Purchases | Not stated | varies | Conditional | single-pass | Item 6, p. 21 | [Listed by one verification pass only (A); not independently confirmed.] |
| New Product or Supplier Testing | $500–$2,000 | per event | No | verified (tie-break) | Item 6, p. 21 | Triggered only when the franchisee proposes a new product or supplier. Franchisee-initiated; not incurred in ordinary operation. |
| Clinic Design Fee (Remodel/Renewal) | Tiered (base $500) | varies | Yes | verified (tie-break) | Item 6, p. 21 | Payable each time the franchisor prepares or modifies a Clinic Design; the $20,000-per-4-years remodel requirement can trigger it on a recurring but irregular basis. Distinct from the one-time initial Clinic Design Fee charged at signing (Item 5). Paid to the franchisor. Separate from, and not a component of, the $20,000 remodel spend (remodel-reserve), which is paid to contractors and suppliers. |
| Relocation Fee | $2,500 | one time | No | single-pass | Item 6, p. 21 | [Listed by one verification pass only (A); not independently confirmed.] |
| Renewal Fee | 25% of other | one time | Yes | single-pass | Item 6, p. 22 | A pro-rated renewal fee applies if a transferee elects a full new 10-year term instead of assuming the seller's remaining term. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer Fee | Tiered (base $2,500) | one time | No | single-pass | Item 6, p. 22 | If a broker the franchisor engaged finds the buyer, the transferring franchisee must also reimburse the broker's commission. [Listed by one verification pass only (A); not independently confirmed.] |
| Reimbursement of Inspection Costs | Not stated | varies | No | single-pass | Item 6, p. 22 | Only imposed following an inspection triggered by a flagged issue. [Listed by one verification pass only (A); not independently confirmed.] |
| Audit Fee | Not stated | varies | No | single-pass | Item 6, p. 22 | Imposed only if an audit is required due to late/missing reports or reveals a Gross Sales understatement of 2% or more. [Listed by one verification pass only (A); not independently confirmed.] |
| Late Fee | $100 | per event | No | verified (tie-break) | Item 6, p. 22 | Charged on a late payment; the $35 NSF fee is charged in addition to the late fee when an ACH debit is rejected or a check is returned for insufficient funds. Default-driven; not incurred in ordinary operation. |
| Noncompliance Fee | $100 | per event | No | single-pass | Item 6, p. 22 | [Listed by one verification pass only (A); not independently confirmed.] |
| Default Reimbursements | Not stated | varies | No | single-pass | Item 6, p. 22 | [Listed by one verification pass only (A); not independently confirmed.] |
| Management Fee | $10 | varies | No | single-pass | Item 6, p. 22 | Imposed if the franchisee fails to appoint a new Managing Owner within 30 days, fails to cure a default in time, or during the decision period after expiration/termination while the franchisor considers its purchase option. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | Conditional | single-pass | Item 6, p. 23 | [Listed by one verification pass only (A); not independently confirmed.] |
| Attorneys' Fees and Costs | Not stated | varies | Conditional | single-pass | Item 6, p. 23 | [Listed by one verification pass only (A); not independently confirmed.] |
| Liquidated Damages | Not stated | one time | Conditional | single-pass | Item 6, p. 23 | Imposed if the franchisor terminates for the franchisee's default, or the franchisee terminates outside the agreement's permitted terms. Timely payment forecloses a separate lost-profits claim (but not other damages). [Listed by one verification pass only (A); not independently confirmed.] |
| Royalty Fee - 2025 new Clinic ramp-up incentive | Tiered (base 3%) | monthly | No | verified (tie-break) | Item 6, p. 20 | Only Clinics that opened during 2025 are eligible. Clinics opening after December 31, 2025 are not eligible, and the incentive does not apply to open Clinics purchased from the franchisor, an affiliate or a franchisee. Same Item 6 table cell as the standard royalty, printed under the heading [Incentive Royalty Structure]. |
| HIPAA Compliance Tools & Resources | $35–$150 | monthly | Yes | verified (tie-break) | Item 11, p. 41 | Item 11 also states the franchisee must purchase and use appropriate HIPAA compliance tools and resources. |
| Tablet Security Fee | $20 | annual | Yes | verified (tie-break) | Item 11, p. 41 | Item 11 requires 3 tablets in the standard equipment package. |
| Training Fee | $1,000 | per event | No | verified (tie-break) | Item 6, p. 21 | Not charged for the pre-opening initial training program or for online training. May be charged for any training provided after the Clinic opens, including training a replacement Managing Owner or General Manager, retraining after a failed attempt, remedial training and requested additional training. Item 11 confirms the initial pre-opening training program carries no separate charge. Same rate as, but a separate Item 6 row from, the Conference Registration Fee. |
| Required insurance premiums | $6,000–$12,200 | annual | Yes | verified (tie-break) | Item 7, p. 24 | Premiums vary with carrier, payment terms and claims history. Failure to maintain required insurance is a curable default; the franchisor may buy cover and charge it back under Default Reimbursements. Citation audit 2026-09-04: page corrected 27 -> 24 (value verified on p. 24). |
| Grand Opening Advertising | $20,000–$25,000 (min $20,000) | one time | Yes | single-pass | Item 11, p. 38 | [Listed by one verification pass only (B); not independently confirmed.] Included here because it is a mandatory marketing obligation that is easy to double-count against local advertising. The franchisor may require use of a designated marketing company. |
| Local Advertising Commitment - $500/month SEO reallocation | $500 | monthly | Yes | verified (tie-break) | Item 11, p. 38 | In force from October 2025 until March 31, 2027 for all franchisees. Reallocated from, not added to, the Local Advertising Commitment; excludes CSC employee salaries and infrastructure costs. The $500 is collected as an incremental draw by the franchisor. Because it is carved out of the Local Advertising Commitment, only that entry may carry model_treatment percent_of_revenue. |
All fees are nonrefundable and collected by ACH debit. Two of the recurring charges have dollar minimums that apply regardless of sales: the $700 monthly minimum royalty and the $3,000 monthly minimum local advertising spend. The cover page flags mandatory minimum payments as a special risk. Item 6 also lists cost-reimbursement charges (inspection costs, audit costs, default cure costs, indemnification and attorneys' fees) that are not fixed amounts.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Two overlapping populations. The gross sales tables cover 799 "FPR Clinics": the 885 franchised clinics open in the United States as of December 31, 2025, less 29 that opened during 2025 and did not report sales for one or more months, 22 that transferred between franchisees during 2025, and 35 that the franchisor sold to franchisees. Company-owned and affiliate-owned clinics are excluded, as are any clinics outside the United States. The net profit tables cover a smaller subset of 492 "Qualifying Clinics" drawn from the FPR Clinics that had submitted unaudited profit and loss data as of May 1, 2026; those clinics had been open an average of 85 months (median 73.5 months), far longer than a newly opened clinic.
Qualifications: All figures are unaudited and were reported by franchisees. The gross sales tables cover 799 of the 885 franchised clinics open at year end; excluded are clinics that opened part-way through 2025, clinics that transferred between franchisees, and clinics the franchisor sold to franchisees, so newly opened and recently changed-hands clinics are not represented. Company-owned and affiliate-owned clinics are excluded entirely. The net profit tables cover only 492 clinics, about 62% of the FPR population and roughly 56% of all franchised clinics; they self-selected by submitting profit and loss statements, they averaged 85 months of operation, and their average gross sales were about $15,000 higher than the wider FPR average. Net Profit as defined excludes taxes, depreciation, amortisation and extraordinary items; the franchisor recalculated royalty at 7% and marketing fund at 2% of reported sales and assumed each clinic spent the required marketing amount, rather than using booked amounts. Some franchisees classified payroll as an operating expense and others as labour. Results span a wide range, from a $214,488 loss to a $721,366 profit. Table C on gross sales ramp-up for clinics opened in 2024 and 2025 is presented as a chart image and its underlying figures could not be read from the text layer of the reviewed source.
View full Item 19 disclosure and tables
The Joint Corp. makes a financial performance representation covering both sales and profit. On sales, 799 U.S. franchised clinics averaged $563,514 of gross sales in calendar 2025, with a median of $526,397; 43% of clinics reached the average. The spread is wide: the top quartile averaged $892,063 and the bottom quartile $307,458, and individual clinics ranged from $124,473 to $1,759,851. On profit, a narrower group of 492 clinics that submitted unaudited profit and loss statements averaged $93,945 of net profit on $578,201 of gross sales, a 16.2% margin, with a median of $75,780; results in that group ran from a $214,488 loss to a $721,366 profit. What the tables do not show is what a new clinic earns. The profit group had been open an average of 85 months, and clinics that opened part-way through 2025 were excluded from every table. The ramp-up chart that would address the first year is an image in the source document and its figures were not readable. Nothing in Item 19 accounts for debt service, owner compensation, taxes or depreciation.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Annual Gross Sales — all 799 FPR Clinics 43% of units met or exceeded 345 of 799 clinics attained or exceeded the average. | System (FPR Clinics) Average | $563,514 | 799 | CY2025 | FDD p.53 |
| Annual Gross Sales — all 799 FPR Clinics | System (FPR Clinics) Median | $526,397 | 799 | CY2025 | FDD p.53 |
| Annual Gross Sales — highest single FPR Clinic | System (FPR Clinics) High | $1,759,851 | 799 | CY2025 | FDD p.53 |
| Annual Gross Sales — lowest single FPR Clinic | System (FPR Clinics) Low | $124,473 | 799 | CY2025 | FDD p.53 |
| Annual Gross Sales — top quartile 38% of units met or exceeded Quartile range was $686,568 to $1,759,851; quartile median $846,378. | Quartile 1 (highest 25%) Quartile avg. | $892,063 | 200 | CY2025 | FDD p.53 |
| Annual Gross Sales — second quartile 48% of units met or exceeded Quartile range was $526,594 to $685,227; quartile median $595,430. | Quartile 2 Quartile avg. | $597,694 | 199 | CY2025 | FDD p.53 |
| Annual Gross Sales — third quartile 48% of units met or exceeded Quartile range was $389,121 to $526,397; quartile median $451,926. | Quartile 3 Quartile avg. | $457,011 | 200 | CY2025 | FDD p.53 |
| Annual Gross Sales — bottom quartile 58% of units met or exceeded Quartile range was $124,473 to $388,853; quartile median $321,175. | Quartile 4 (lowest 25%) Quartile avg. | $307,458 | 200 | CY2025 | FDD p.53 |
| Annual Gross Sales — 492 Qualifying Clinics (net profit subset) 41% of units met or exceeded Median $534,019; range $155,102 to $1,759,851. This subset averages higher sales than the full FPR population. | Qualifying Clinics (net profit subset) Average | $578,201 | 492 | CY2025 | FDD p.55 |
| Labour expense — 492 Qualifying Clinics 47.9% of average Gross Sales; median $249,131. Includes chiropractor and coordinator wages, payroll taxes, bonuses, contract labour, recruiting, employee health insurance, malpractice insurance and workers' compensation. | Qualifying Clinics (net profit subset) Average | $276,787 | 492 | CY2025 | FDD p.55 |
| Facilities expense — 492 Qualifying Clinics 11.3% of average Gross Sales; median $64,311. Includes rent, common area charges, utilities, telephone, internet, property taxes, repairs and maintenance. | Qualifying Clinics (net profit subset) Average | $65,382 | 492 | CY2025 | FDD p.55 |
| Insurance expense — 492 Qualifying Clinics 1.4% of average Gross Sales; median $6,940. | Qualifying Clinics (net profit subset) Average | $7,898 | 492 | CY2025 | FDD p.55 |
| Operating expense — 492 Qualifying Clinics 14.0% of average Gross Sales; median $75,666. Includes software and merchant fees, licences and permits, local and cooperative marketing, professional fees, healthcare taxes where applicable, dues and subscriptions. | Qualifying Clinics (net profit subset) Average | $81,152 | 492 | CY2025 | FDD p.55 |
| Royalty fee — 492 Qualifying Clinics Computed by the franchisor as 7.0% of reported Gross Sales rather than taken from franchisee books. | Qualifying Clinics (net profit subset) Average | $40,474 | 492 | CY2025 | FDD p.55 |
| Marketing fund contribution — 492 Qualifying Clinics Computed as 2.2% of average Gross Sales; the franchisor assumed clinics spent the marketing amounts the Franchise Agreement requires. | Qualifying Clinics (net profit subset) Average | $12,564 | 492 | CY2025 | FDD p.55 |
| Months in operation — 492 Qualifying Clinics Value is months. Table B-2 shows an average of 85 months and a median of 73.5 months, with a range of 13 to 267 months; the narrative above the table describes 73.5 months as the average, which conflicts with the table. | Qualifying Clinics (net profit subset) Average | 85 | 492 | As of Dec 31, 2025 | FDD p.56 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Net Profit — 492 Qualifying Clinics Defined as Gross Sales less cost of goods, labour, facilities, insurance, operating expense, royalty and marketing fund fees. It excludes taxes, depreciation, amortisation and non-recurring items, and no deduction for debt service or owner compensation is identified separately. | Qualifying Clinics (net profit subset) Average | $93,945 | 492 | CY2025 | FDD p.55 |
| Net Profit — 492 Qualifying Clinics | Qualifying Clinics (net profit subset) Median | $75,780 | 492 | CY2025 | FDD p.55 |
| Net Profit — highest single Qualifying Clinic | Qualifying Clinics (net profit subset) High | $721,366 | 492 | CY2025 | FDD p.55 |
| Net Profit — lowest single Qualifying Clinic At least one clinic in the subset reported a loss of this size for the year. | Qualifying Clinics (net profit subset) Low | −$214,488 | 492 | CY2025 | FDD p.55 |
| Net Profit as a share of Gross Sales — 492 Qualifying Clinics | Qualifying Clinics (net profit subset) Average | 16.2% | 492 | CY2025 | FDD p.55 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 712 | 104 | 0 | 1 | 3 | 12 | 800 | 24 | 135 |
| 2024 | 800 | 60 | 0 | 0 | 0 | 18 | 842 | 41 | 125 |
| 2025 | 842 | 70 | 16 | 0 | 0 | 11 | 885 | 22 | 75 |
Disclosed 2026 Franchise Disclosure Document — The Joint Corp., Item 20, Tables 1–3 (PDF p. 57). All four status tables foot exactly against their own start, opened and closure columns. Franchised outlets grew every year: +88 in 2023, +42 in 2024 and +43 in 2025, driven by 104, 60 and 70 openings against 16, 18 and 27 exits. One caution on the source: the "Net Change" column of Table 1 records +45 for franchised outlets in 2024 and +40 in 2025, which does not match the start and end counts in the same rows (800 to 842 is +42, and 842 to 885 is +43). The start and end figures are internally consistent with Tables 3 and 4 and with the total outlet row, so the net change column appears to be in error and the start and end counts were used here. The 2025 exits are the notable change: 16 terminations, after none in 2023 or 2024, plus 11 clinics that ceased operating for other reasons. The company-owned estate shrank sharply, from 135 at the end of 2023 to 75 at the end of 2025, mainly through 41 clinics sold to franchisees during 2025 and 9 closures. Total system outlets therefore fell by 7 in 2025 despite franchised growth. Transfers between franchisees were 24, 41 and 22 over the three years. Item 19 refers to 35 clinics sold by the franchisor to franchisees being excluded from its population, while Table 4 records 41 sold to franchisees during 2025; the source does not reconcile the two figures. Tables 1 to 4 cover U.S. states and the District of Columbia only.
Source data notes (6) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table 2 2023: Table 2 does not foot for FY2023: the printed TOTAL row reads 24, but the nine non-zero state rows sum to 25 (California 1, Florida 7, Kentucky 1, Minnesota 1, Missouri 3, Pennsylvania 1, South Carolina 1, Texas 6, Wisconsin 4; every other state 0). — Re-read from the page images of PDF pp.58-60, not just the text layer. Both readings are correctly extracted: p.60 prints 'Total Outlets / 2023 / 24' and the state rows on pp.58-60 are exactly as listed, summing to 25. The printed table genuinely does not foot; there is no footnote reconciling it. The printed TOTAL of 24 is retained per the TOTAL-row rule and the record value is unchanged. The gap is 1 unit, or 0.14% of the 712 franchised outlets at the start of 2023, well under the 0.5% materiality threshold; FY2024 (41) and FY2025 (22) foot exactly, and Item 19 independently corroborates the 22 transfers in 2025. Transfers do not enter the unit-count roll-forward, so Tables 1, 3 and 4 and every unit, growth and attrition figure are unaffected.
- [B/minor] Table 1 2024: Table 1's franchised Net Change cell for 2024 prints +45, but the same row prints 800 outlets at the start of the year and 842 at the end, a change of +42. — Confirmed against the page image of PDF p.57 (printed page 50): the row reads '2024 / 800 / 842 / +45'. The start and end counts are the corroborated figures - Table 3's TOTAL row shows the identical 800 to 842 roll-forward (800 + 60 opened - 18 ceased = 842), and Table 1's company-owned and Total Outlets net-change cells are all arithmetically correct. So the defect is confined to the derived franchised Net Change column, which the site does not use; growth is derived from start/end counts. The 3-unit error is 0.375% of the 800 start-of-year franchised outlets, below the 0.5% threshold, and does not change the sign of growth.
- [B/minor] Table 1 2025: Table 1's franchised Net Change cell for 2025 prints +40, but the same row prints 842 outlets at the start of the year and 885 at the end, a change of +43. — Confirmed against the page image of PDF p.57: the row reads '2025 / 842 / 885 / +40'. The 842 and 885 counts are corroborated twice over - Table 3's TOTAL row foots to them (842 + 70 opened - 16 terminations - 11 ceased = 885) and Item 19 states 885 franchised Clinics open at December 31, 2025. Again only the derived column is defective. The 3-unit error is 0.356% of the 842 start-of-year franchised outlets, below the 0.5% threshold, and growth stays positive either way.
- [D/minor] Table 3 2025: The 2025 franchised 'Outlets Opened' TOTAL of 70 includes conversions of company-owned Clinics, not only new construction. Arizona shows 26 franchised openings in the same year Table 4 shows 24 Arizona company Clinics sold to franchisees, and New Mexico shows 7 openings against 7 company Clinics sold; state by state, franchised openings equal or exceed company Clinics sold in every affected state (AZ 26 vs 24, NM 7 vs 7, CA 9 vs 5, KS 4 vs 4, MO 1 vs 1). — This is a table-definition artifact, not an error. Table 3 has no column for outlets acquired from the franchisor, so a company Clinic that becomes franchised can only appear as an opening, while Table 4 records the same event as 'Outlets Sold to Franchisee'. Both tables foot on their own terms (Table 3: 842 + 70 - 16 - 11 = 885; Table 4: 125 - 9 closed - 41 sold = 75) and agree with Table 1, so no printed TOTAL is in doubt and unit counts are correct. The consequence is interpretive: up to 41 of the 70 franchised 'openings' in 2025 are refranchised company Clinics, so treating all 70 as greenfield would overstate new-unit development, and the system's 967 to 960 decline is a refranchising effect rather than net closures.
- [D/minor] Table 4 vs Item 19 2025: Table 4's TOTAL row reports 41 company-owned Clinics sold to franchisees during 2025, but Item 19 excludes only '35 clinics sold by us to franchisees' from the FPR population - a 6-unit difference between two counts of the same event. — Item 19's exclusions must be mutually exclusive for its own arithmetic to work (885 - 29 - 22 - 35 = 799, which is the population it reports), so its 35 is necessarily 'sold Clinics not already excluded on another ground'. Refranchised Clinics also register as 2025 franchised openings, so 6 of the 41 plausibly fall into the separate '29 Clinics that opened during 2025 and did not report sales for 1 or more months' bucket instead. The FDD does not state this, so the reconciliation is inferred rather than proven, but no Item 20 count depends on it: Table 4 foots (125 - 9 - 41 = 75), its 41 sold reconciles state by state (AZ 24 + CA 5 + KS 4 + MO 1 + NM 7 = 41), and Item 19's 885 open Clinics and 22 transfers both match Item 20. The discrepancy touches only the FPR denominator, and 6 units is
- [D/minor] Table 5 2025: Table 5's signed-but-not-open TOTAL of 139 covers jurisdictions that appear nowhere in Tables 2-4, including Puerto Rico (2 agreements), Rhode Island (3) and Montana (2 signed, 1 projected opening), and Puerto Rico is outside the 50 states while Item 19 expressly excludes non-U.S. Clinics. — A legitimate definitional difference rather than a footing error: Table 5 counts agreements signed for outlets not yet open, which can exist in a state with no operating outlets, so its coverage is properly wider than Tables 2-4. Table 5 itself foots - the state rows sum to the printed 139 signed agreements and 34 projected franchised openings, with 0 projected company-owned openings, consistent with the 2025 refranchising. The only caveat for a U.S.-only presentation is that 2 of the 139 are Puerto Rico, 1.4% of the backlog, which does not disturb any operating-unit total. Worth noting alongside the backlog: 139 signed agreements against 34 projected openings is roughly a four-year backlog at the projected rate, and the 34 is well below the 70 opened in 2025 and 104 in 2023.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 126 | 10 | 3 | 4 | 0 | 135 |
| 2024 | 135 | 0 | 0 | 7 | 3 | 125 |
| 2025 | 125 | 0 | 0 | 9 | 41 | 75 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — The Joint Corp.
- Document
- FDD 2026, issued 2026-06-15
- Item
- Item 15
- Page
- PDF p. 47
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 642016
The Managing Owner is not required to provide onsite management of your Clinic as long as a trained General Manager is onsite.
A designated Managing Owner must be approved by the franchisor, complete all required training and hold at least a 5% ownership interest, but need not be onsite provided a trained General Manager is. Either the Managing Owner or a trained General Manager must be present during all normal business hours. Other owners have no participation requirement. The franchisor states its view that having the Managing Owner onsite improves results.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
A designated Managing Owner must be approved by the franchisor, complete all required training and hold at least a 5% ownership interest, but need not be onsite provided a trained General Manager is. Either the Managing Owner or a trained General Manager must be present during all normal business hours. Other owners have no participation requirement. The franchisor states its view that having the Managing Owner onsite improves results. A designated Managing Owner must be approved by the franchisor, complete all required training and hold at least a 5% ownership interest, but need not be onsite provided a trained General Manager is. Either the Managing Owner or a trained General Manager must be present during all normal business hours. Other owners have no participation requirement. The franchisor states its view that having the Managing Owner onsite improves results. |
|---|---|
| Initial training | Initial training runs about 10 hours of online modules, 3 to 4 days at the franchisor's Scottsdale, Arizona headquarters, and 3 to 5 days of on-the-job training at a designated certified training clinic (often in Arizona). The program totals roughly 26 hours of classroom and online instruction plus 24 hours of on-the-job training. The Managing Owner and any General Manager must complete it successfully before the clinic opens; other owners may attend but are not required to. An opening supervisor also provides 3 days of onsite training around the opening date. The franchisor may waive parts of the program or deliver it remotely, and charges $1,000 per person per day for training provided after the clinic opens. Disclosed
Item 7 estimates $3,500 to $5,000 of training travel and living costs for 1 to 2 attendees, at roughly $350 per person per day excluding airfare. |
| Multi-unit / development options | Area development rights are available at the franchisor's discretion to franchisees who commit to at least 2 clinics. The Area Development Agreement sets a development territory and a binding development schedule, and a separate franchise agreement, on the then-current form, must be signed for each clinic. The development fee is $10,000 per additional clinic committed, and the franchisor expects most area developers to take 2 to 5 clinics, so $10,000 to $40,000. Each additional clinic carries a discounted $29,900 initial franchise fee instead of $39,900. Missing the development schedule can end the Area Development Agreement and the territorial protection that goes with it, though it is not by itself grounds to terminate a franchise agreement in good standing. Disclosed
Area development terms appear in Items 1, 5, 7, 12 and 17. The Area Development Agreement itself cannot be renewed. |
| Territory (Item 12) | Item 12 opens by stating the franchisee receives no exclusive territory. In practice the franchise agreement does define a territory of between 10,000 and 25,000 households, mapped by the franchisor using ArcGIS, inside which the franchisor agrees during the term not to open or license another clinic under its marks. That protection carries two carve-outs: clinics in "Captive Venues" such as hotels, campuses, airports, malls, military bases, grocery stores, urgent care centres and medical spas, and clinics acquired through the purchase of another chain and converted to the brand. The franchisor also reserves alternative channels of distribution, including internet, telemarketing, mobile and in-home chiropractic care, with no compensation to the franchisee. Territorial protection does not depend on hitting sales targets, but the franchisor may shrink the territory at renewal or on a non-permitted transfer. Disclosed
A protected Site Selection Area is available before the site is chosen only if the franchisee pays the higher $15,000 deposit, and it lapses after 180 days or when the territory is designated, whichever is earlier. |
| Initial term | 10 years Disclosed
Ten-year initial term under the Franchise Agreement. A Managed Clinic Addendum runs coterminously. |
| Renewal | One consecutive 10-year successor term is available if conditions are met; any further renewals require mutual agreement and neither side is obliged to grant them. To renew, the franchisee must be free of default, give timely notice, sign the then-current form of franchise agreement (which may differ materially from the original), sign a general release where state law allows, pay the renewal fee and clinic design fee, remodel to the new clinic design, upgrade furniture, fixtures and equipment to current standards, and extend the lease. The Area Development Agreement carries no renewal right. Disclosed
The renewal fee is 25% of the then-current standard initial franchise fee, computed before any discount. |
| Staffing | Either the Managing Owner or a trained, franchisor-approved General Manager must be present at the clinic during all normal business hours, and a General Manager must devote full-time effort to onsite management. Chiropractic services may only be delivered by licensed chiropractors, whose hiring, firing and clinical decisions rest with the franchisee or, under the Managed Clinic model, with the chiropractic professional entity. Clinics typically occupy 1,000 to 1,400 square feet. Disclosed
The reviewed source does not state a typical headcount or opening hours for a clinic. |
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 4 matter(s) disclosed Disclosed · Bankruptcy: Disclosure present Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 4 matter(s) disclosed Disclosed Item 3 lists four matters and states no others require disclosure. Two are active suits the franchisor brought in 2026 against former franchisees: one in federal court in California alleging trademark infringement, false designation of origin and breach of the franchise agreement and guaranty after the defendant continued operating a clinic past expiry; and one in Arizona state court seeking a $30,000 judgment for non-payment under a 2025 settlement. Two are completed. The first was a related 2025 federal suit in Arizona over a franchisee that kept operating after termination, settled in November 2025 with a permanent injunction, transfer of the clinic and payment of $17,000 of receivables and $30,000 of the franchisor's legal fees. The second was a 2015 arbitration demand in California brought by twelve former or current franchisee entities and two individuals, alleging breach of contract, breach of the covenant of good faith, wrongful termination, fraud, negligent misrepresentation and California Franchise Investment Law violations; the franchisor denied liability and counterclaimed over development schedules, and the parties settled in December 2016 with the franchisor paying $800,000 (including $600,000 from insurance and $100,000 in company stock) and waiving certain transfer fees, with mutual releases and dismissal with prejudice. |
|---|---|
| Bankruptcy (Item 4) | Disclosure present Disclosed One matter, involving an officer rather than the franchisor. The SVP of Development previously served as Chief Development Officer of GGI Holdings, LLC, the parent of the Gold's Gym brand, which filed Chapter 11 in the Northern District of Texas in May 2020; the plan of reorganisation was confirmed in August 2020 and the case closed in September 2020. The franchisor states the proceeding did not involve The Joint Chiropractic, and that no other bankruptcy requires disclosure. |
| Personal guaranty | Required Disclosed
Where the franchisee is an entity, each owner and each owner's spouse must sign the Franchise Owner Agreement attached to the Franchise Agreement. The cover pages flag spousal liability as a special risk, stating a spouse with no ownership interest becomes liable for the franchise agreement's financial obligations, putting marital and personal assets at risk. |
| Non-compete | During the term the franchisee and its owners may not be involved in a competing business, defined narrowly as a private-pay, non-insurance chiropractic business run on a membership model that derives or is expected to derive at least $10,000 a year from chiropractic services; operating a chiropractic business outside that definition is not restricted. After termination or expiry the restriction runs for 2 years and covers the former clinic's premises and anywhere within 10 miles of that clinic or any other clinic in the system. Both covenants are stated to be subject to applicable state law. Neither the Area Development Agreement nor the Managed Clinic Addendum adds non-compete obligations. Disclosed
The 10-mile radius attaches to any clinic in the system, not only the franchisee's own, so its practical reach depends on local clinic density. |
| Transfer restrictions | Permitted Transfers, broadly transfers of under 5% of ownership, transfers to family or a related trust, transfers between existing owners, and reorganisations into a wholly owned entity, do not need approval, provided control does not change and the Managing Owner keeps at least 5%. All other transfers need franchisor approval, which will not be unreasonably withheld. The buyer must meet the franchisor's qualifications, complete training, obtain licences, assume clinic contracts, sign the then-current franchise agreement for either the remaining term or a full 10 years with a pro-rated renewal fee, and remodel and upgrade to current standards within 6 months. The seller must be in compliance, assign the lease, pay the transfer fee, subordinate any seller financing to the buyer's obligations to the franchisor, and sign a general release. The franchisor holds a right of first refusal to match any offer. If the buyer is not eligible to own a Franchised Clinic, the business must be converted to a Managed Clinic. The Area Development Agreement may not be transferred other than by a Permitted Transfer. Disclosed
Transfer fees are $2,500, $5,000 or $15,000 depending on the type of transfer; a failed transfer still costs the lesser of $5,000 or the franchisor's evaluation expenses. |
| Termination / non-renewal | The franchisee may terminate only if the franchisor defaults and fails to cure. The franchisor may terminate for default, and without cause only with the franchisee's written consent or where counsel advises the business or fee model is unlawful in the state and the parties cannot agree on changes, which is treated as a no-fault termination without liquidated damages. Cure periods are short: 10 days for monetary defaults, lapsed insurance or missing credentialing reports; 20 days for a lapsed licence other than one needed to treat patients or operate the clinic, for which there is no cure period; 90 days to cure a failure to open, capped at 180 days past the required opening date; and 30 days for anything else. A long list of defaults cannot be cured at all, including insolvency, abandonment, loss of a required treatment or operating licence, violation of material law, health or safety hazards, unauthorised transfers, material misrepresentation, and receiving three or more default notices in any 12 months. Termination for franchisee default, or early termination by the franchisee, triggers liquidated damages of up to 24 months of average royalty and marketing fund fees. On termination the franchisor holds an option to buy the clinic under a pre-agreed asset purchase agreement. Disclosed
Item 20 records 16 franchised terminations during 2025, after none in 2023 and 2024. |
| Supplier restrictions (Item 8) | The franchisor estimates that roughly 30% of the purchases and leases needed to open a clinic, and about 15% of ongoing operating expenses, are source-restricted. Restricted categories include the clinic design (supplied only by the franchisor), fixtures, furnishings and decor, chiropractic and professional equipment, signage, uniforms, branded marketing materials, technology systems, chiropractor credentialing reports (currently from National Integrated Health Group), and merchant card processing (currently Paysafe Group). The franchisor is the exclusive supplier of the proprietary office management software, which is also the point-of-sale and electronic health records system, licensed through the technology fee. Buying from an unapproved supplier is a default that can lead to termination. The franchisor has no written supplier approval criteria and does not furnish criteria to franchisees; it decides on proposed suppliers within 45 days, with the franchisee bearing evaluation costs. It also receives rebates, expected to run 0% to 10% of purchase price, currently 37 basis points on card transactions from Paysafe and 5% net on hardware from 3form, LLC, with no obligation to pass them on. For the fiscal year ended December 31, 2025 the franchisor reported total revenue of $108,934,100 and $7,717,432, or 7.1%, from franchisee and company clinic purchases of goods and services from designated or approved suppliers. Disclosed
Sourcing obligations are expressly subject to the professional judgment of the treating chiropractors where purchases relate to diagnosis, treatment or patient care. |
| Dispute resolution | Arbitration is not required. Subject to state law, disputes must be mediated before litigation, except for claims about the franchisor's intellectual property or enforcement of restrictive covenants. Mediation and litigation take place in the county of the franchisor's principal place of business at the time the dispute arises, currently Maricopa County, Arizona, and Arizona law governs except for federal trademark matters. The cover pages flag out-of-state dispute resolution as a special risk. No jury waiver is described in the Item 17 table. Disclosed
|
- Two recurring charges carry dollar floors that apply regardless of sales: a minimum royalty of $700 per month and a local advertising commitment of at least $3,000 per month. The cover pages list mandatory minimum payments as a special risk.
- The franchisor may require at least $20,000 of remodelling, redecorating, refurnishing or expansion every 4 years, plus a clinic design fee for each new design.
- The franchisor holds an option to purchase the clinic on expiry or termination of the franchise agreement, and a right of first refusal to match any third-party offer during the term.
- The business is heavily regulated. Corporate-practice-of-medicine laws in at least 23 named states and the District of Columbia may require a non-chiropractor franchisee to use the Managed Clinic structure, in which a separate chiropractic professional entity owns the practice and the franchisee only provides management services under a management agreement the franchisee must have its own healthcare counsel prepare.
- Franchisees have no vote over the National Marketing Fund, and the franchisor may raise the contribution from 2% to 3% of Gross Sales on 30 days' notice.
- Franchisees may not run their own website or conduct digital advertising under the marks; the franchisor hosts a local webpage and may modify or discontinue it at any time.
- Item 20 notes that some current and former franchisees have signed confidentiality provisions restricting what they can say about their experience with the franchisor.
- Area development rights hinge on meeting a development schedule; missing it can end the Area Development Agreement and its territorial protection.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $307,458 | $563,514 | $648,041 |
| − Cost of goods / supplies assumption | $24,597 | $45,081 | $51,843 |
| − Payroll (excl. owner) assumption | $138,356 | $253,581 | $291,618 |
| − Occupancy assumption | $36,895 | $67,622 | $77,765 |
| − Other operating expenses assumption | $36,895 | $67,622 | $77,765 |
| − Royalty Fee disclosed 7% of gross sales = $39,446 |
$21,522 | $39,446 | $45,363 |
| − National Marketing Fund Fee disclosed 2% of gross sales = $11,270 |
$6,149 | $11,270 | $12,961 |
| − Local Advertising Commitment disclosed 5% of gross sales = $28,176; disclosed minimum $36,000/yr applies |
$36,000 | $36,000 | $36,000 |
| − Technology Fee disclosed $599/month × 12 = $7,188 |
$7,188 | $7,188 | $7,188 |
| = Modeled operating result before the items below (EBITDA-style) | −$144 | $35,704 | $47,538 |
| − Manager compensation assumption | $55,000 | $55,000 | $55,000 |
| = Modeled result after manager compensation | −$55,144 | −$19,296 | −$7,462 |
| − Illustrative debt service assumption | $44,672 | $44,672 | $44,672 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$99,816 | −$63,968 | −$52,135 |
| Modeled operating margin | -0% | 6.3% | 7.3% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 6 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Cooperative Advertising Fee (Item 6, p. 20) — Credited against the Local Advertising Commitment where a cooperative exists, so treat as included in that spend rather than incremental for modeling.
- Conference Registration Fee (Item 6, p. 21) — No conference frequency is disclosed; model only with an assumed number of conferences and attendees per year.
- Product Purchases (Item 6, p. 21) — amount not stated in the FDD (e.g. “then-current fee”)
- Clinic Design Fee (Remodel/Renewal) (Item 6, p. 21) — A periodic (roughly 4-year) remodel-cycle cost, not annual; model with an assumed remodel interval.
- HIPAA Compliance Tools & Resources (Item 11, p. 41) — Assume about $1,100 a year at the midpoint.
- Required insurance premiums (Item 7, p. 24) — $6,000-$12,200 a year. Item 7 carries only 3 months ($2,000-$4,300) into the initial investment, so the balance is an ongoing cost. Item 19 Table B-1 shows an average Insurance line of $7,898, consistent with this range.
Overlap control: Local Advertising Commitment - $500/month SEO reallocation is counted within “local-advertising-commitment” — excluded to avoid double counting.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — The Joint Corp. · issued 2026-06-15. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — The Joint Corp. Registry file 642016 · 471 pages Registered in Wisconsin with a registration effective date of June 26, 2026. This is the most recent disclosure document available from the registry at the time of retrieval. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-06-15 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-04. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 73 of 77 material fields confirmed (68 with the exact page citation re-confirmed), 1 corrected, 0 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (4)
- item19.metrics — Table C (gross sales ramp-up for clinics opened in 2024 and 2025) is a chart image in the source; only the clinic counts per month were in the text layer, so no ramp-up figures were recorded.
- investment.franchise_fee_low — recorded as the standard $39,900 rather than the $19,950 shown in Item 7, because Item 7's low figure assumes the 2025 sales incentive that expired December 31, 2025. The Item 7 total_low of $245,250 still embeds that $19,950 assumption as published.
- fees.cooperative — Item 6 discloses a cooperative advertising fee but states only that the amount is set by the franchisor or the cooperative, so no value could be recorded.
- item20.notes — Item 19 says 35 clinics sold by the franchisor to franchisees were excluded from its population while Item 20 Table 4 records 41 sold to franchisees in 2025; the source does not reconcile the two.
Extraction notes (9)
- Item 7's two columns foot exactly to the published totals of $245,250 and $543,000, and all four Item 20 status tables foot exactly, including Table 1 totals equalling Table 3 plus Table 4 endings for each year.
- Item 20 Table 1's "Net Change" column for franchised outlets (+45 for 2024, +40 for 2025) contradicts the start and end counts in the same rows (+42 and +43). The start and end counts agree with Tables 3 and 4 and with the total outlet row, so they were used and the discrepancy is flagged in item20.notes.
- Item 19's population arithmetic checks: 885 franchised clinics open at December 31, 2025 less 29 partial-year, 22 transferred and 35 sold by the franchisor gives the 799 FPR Clinics used in Table A.
- Table B-2 reports an average period of operation of 85 months and a median of 73.5 months, but the narrative above it describes 73.5 months as the average. The table values were used and the conflict is recorded in the metric note.
- fees.cooperative is tagged not_disclosed with a source citation because the fee exists in Item 6 but carries no stated amount; the citation is retained for provenance.
- units.us_only and item20.us_only are set true because Item 20 Tables 1 to 4 list only U.S. states and the District of Columbia. Item 19 states the franchisor does not report data for clinics outside the United States, which implies some may exist but are not counted in these tables.
- This FDD covers a single brand but two operating structures, the Franchised Clinic (direct ownership) and the Managed Clinic (management of a chiropractic professional entity). The investment and fee figures recorded here apply to both; Item 7 notes the higher professional fees estimate assumes a Managed Clinic.
- The franchisor also sold 44 area representative franchises historically but no longer offers them, so no area representative data is recorded.
- Verification 2026-09-02: correct /franchisor/business_since 2010 → 2014
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