100% Chiropractic Franchise Analysis (2024)
This article is based on its 2022 FDD.
100% Chiropractic Franchise was founded by Drs. Jason and Vanessa Helfrich, both passionate chiropractors who graduated with honors from the prestigious Palmer College of Chiropractic in 2004. Upon completing their studies, they embarked on a journey with their three young boys—Ty, Cael, and Alec—moving back to their hometown of Colorado Springs, CO. It was here that they opened their first 100% Chiropractic clinic in August 2004, driven by a strong desire to bring their vision of a health revolution to life.
Believing in the importance of true wellness and preventive care, as opposed to the prevailing “sick care” model, the Helfrichs have dedicated their careers to educating and empowering individuals to live healthier, more fulfilling lives. As they opened new clinics and expanded their reach, they remained committed to providing high-quality chiropractic care, massage therapy, and nutritional supplements that cater to each patient’s unique health goals.
Their dedication to exceptional care and customer service has not gone unnoticed. 100% Chiropractic has received accolades from Entrepreneur Magazine and Inc5000 as one of the top new franchises, consecutively for two years. Patients across the nation are embracing the 100% Chiropractic family, and they continue to thrive under the watchful eyes of the Helfrichs, who now reside in San Diego, CA.
100% Chiropractic Franchise Analysis
The heart of 100% Chiropractic lies in its warm and inviting atmosphere, where each patient is seen as a part of the family. The clinics offer a diverse range of chiropractic services, including Corrective Care, Family Wellness, Personal Injury (Auto Accident), Prenatal, Pediatric, and Massage Therapy. By providing affordable cash plans and accepting all insurance types, 100% Chiropractic ensures that patients can access the care they need without reservations.
With their unrelenting mission to change the way people view and experience healthcare, Drs. Jason and Vanessa Helfrich continue to inspire and make a difference in the lives of countless patients. As they grow their family of clinics, their core message remains the same: “Let Our Family Care For Yours.”
How is 100% Chiropractic Franchise Positioned in the Healthcare industry?
100% Chiropractic Franchise is uniquely positioned in the healthcare industry as a leading provider of wellness-oriented chiropractic care, massage therapy, and nutritional supplements. It emphasizes a holistic and preventive approach to healthcare, focusing on overall well-being and quality of life, rather than just treating symptoms.
In an industry largely dominated by a “sick care” model, which prioritizes treating illnesses after they have occurred, 100% Chiropractic stands out by advocating for a proactive and preventive approach to healthcare. This positions them as a progressive and innovative player in the healthcare field, catering to a growing demand for alternative and complementary healthcare services.
Their commitment to personalized care and addressing each patient’s individual health goals sets them apart from traditional healthcare providers. By offering a wide range of services, including Corrective Care, Family Wellness, Personal Injury (Auto Accident), Prenatal, Pediatric, and Massage Therapy, they cater to diverse patient needs and offer comprehensive solutions for various health concerns.
The 100% Chiropractic Franchise has also garnered recognition for its rapid expansion and excellent customer service, receiving accolades from Entrepreneur Magazine and Inc5000 as one of the top new franchises. This success showcases the growing appeal of their wellness-centered approach among patients and their potential to further disrupt the healthcare industry.
How Much is a 100% Chiropractic Franchise?
The initial 100% Chiropractic Franchise Fee is $50,000. This upfront fee must be paid to the franchisor when opening a 100% Chiropractic franchise.
100% Chiropractic Franchise Cost
The estimated total investment necessary to begin the operation of a 100% Chiropractic Franchise ranges from $331,124 to $459,600. The following costs are part of the upfront costs included in the initial investment for a 100% Chiropractic franchise unit. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a 100% Chiropractic franchise in 2023.
Estimated Initial Investment
| Type of Expenditure | Launch Model | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial Franchise Fee | $50,000 | $50,000 | Us |
| Security (rent) and Utility Deposits | $3,000 | $8,000 | Landlord and/or utility companies |
| Three Months’ Lease Rent | $7,500 | $35,000 | Landlord |
| Architectural | $7,500 | $14,500 | Architect |
| Office Planning | $4,500 | $4,500 | Davlen Design |
| Office Buildout | $31,000 | $46,000 | Davlen Design |
| Leasehold Improvements | $100,000 | $100,000 | Landlord or construction contractors |
| Signage | $4,500 | $12,000 | Vendors |
| Office Equipment, Including Furniture and Fixtures | $7,200 | $11,000 | Vendors |
| Chiropractic or Other Professional Equipment | $13,000 | $23,000 | Vendors |
| X-Ray Machine | $40,000 | $40,000 | Vendors |
| Computer Hardware, Software, Supplies and Installation | $19,000 | $22,500 | Vendors |
| Business Licenses and Permits | $3,500 | $5,000 | Governmental agencies |
| Professional Fees and Services | $3,000 | $4,600 | Attorneys, accountants, and other professionals |
| Insurance (3 months) | $925 | $1,750 | Insurer |
| Initial Training Expenses, Including Travel | $5,500 | $11,500 | Us and Vendors |
| Kick Start Program | $3,800 | $11,500 | Consulting Doctors, Chiropractic Assistant (CA), Vendors |
| Start-up supplies – contracts, invoices, and other office supplies | $9,400 | $9,400 | Vendors or Us |
| Start-up Marketing Expenses through the third month of operation | $2,599 | $14,400 | Vendors |
| Marketing Expenses for Grand Opening | $0 | $1,000 | Vendors |
| Additional Funds – three months | $15,200 | $28,950 | Vendors |
| Financing Cost | $0 | $5,000 | Us or Others |
| TOTAL ESTIMATED INITIAL INVESTMENT | $331,124 | $459,600 | |
Owning a 100% Chiropractic Franchise Requires Ongoing Fees
Royalty: 6.5% of Gross Revenue from all sources as defined in footnote 3 on the FDD item 6. The amount will not exceed $7,500 per month nor be less than $2,500 per month with a $1,500 minimum for the first 3 months. The franchisor may increase these amounts each year during the Term, based on the cost-of-living index described in the Franchise Agreement.
Billing Fee: 10% of insurance collections.
Marketing: $750 per month.
How much do 100% Chiropractic franchise owners make?
| Quartile | # of Clinics | Average | MAX | MIN | # attained or exceeded | % of Clinics that attained or exceeded |
|---|---|---|---|---|---|---|
| 1 | 10 | $1,438,825.89 | $1,896,253.87 | $1,200,187.06 | 4 | 40.00% |
| 2 | 11 | $957,880.03 | $1,130,048.77 | $829,195.64 | 5 | 45.45% |
| 3 | 11 | $729,032.89 | $824,632.13 | $624,776.02 | 5 | 45.45% |
| 4 | 10 | $507,828.84 | $610,615.20 | $254,856.33 | 7 | 70.00% |
| Total SC Clinics | 42 | $905,299.75 | $1,896,253.87 | $254,856.33 | 16 | 38.10% |
2021 100% Chiropractic Median Franchise Sales: $843,456
| Initial investment (midpoint) | %Profit margin of median franchise sales | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $395,362 | 10% | $84,345 | 6 years |
| 15% | $126,518 | 4.75 years | |
| 20% | $168,691 | 4 years |
Based on the median sales provided by 100% Chiropractic’s franchise locations, at an average of a 15% profit margin, it will take around 4.75 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin, which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Healthcare stores; the extent of market penetration and brand awareness that 100% Chiropractic stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
Is the 100% Chiropractic Franchise Profit Worth the Franchise Cost?
To assign a valuation multiple for 100% Chiropractic franchises, we leveraged estimates from DealStats – a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.
- Estimated Selling Price = Net Sales * 0.71
When you go to sell a 100% Chiropractic franchise based on the median multiple of .71 and net sales of $843,456, it would sell for $598,917. The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.
How many 100% Chiropractic units have opened and closed?
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 32 | 34 | +2 |
| 2020 | 34 | 42 | +8 | |
| 2021 | 42 | 60 | +18 | |
| Company-Owned | 2019 | 1 | 2 | +1 |
| 2020 | 2 | 2 | 0 | |
| 2021 | 2 | 4 | +2 | |
| Total Outlets | 2019 | 33 | 36 | +3 |
| 2020 | 36 | 44 | +8 | |
| 2021 | 44 | 64 | +20 |
Over the last three years, the company has been in expansion. Both franchising units and company-operated stores have increased. Over the last three years, franchises have opened at a rate of 9 units a year.
STATEMENT OF INCOME
| January 1, 2021 to October 4, 2021 | January 1, 2020 to December 31, 2020 | January 1, 2019 to December 31, 2019 | |
|---|---|---|---|
| Revenues | |||
| Royalty fees | 647,500 | 422,500 | 285,397 |
| Franchise fees | 1,059,854 | 1,139,219 | 196,300 |
| Bonus and training income | – | 25,995 | – |
| Sales Income | – | – | 117,703 |
| Interest and late fee income | 332,558 | 229,633 | – |
| Other income | – | 1,000 | – |
| Marketing fee | 221,250 | 108,401 | 67,902 |
| Total revenues | 2,261,162 | 1,926,748 | 667,302 |
| Operating expenses: | |||
| Advertising and promotions | – | 1,406 | 11,614 |
| Auto expenses | 9,701 | 14,219 | 1,563 |
| Bank service charges | 18 | 170 | 451 |
| Rent expense | 31,225 | 33,216 | 36,441 |
| Depreciation expense | 9,513 | 11,377 | 4,695 |
| Education and training | 35,127 | 18,785 | 13,865 |
| Payroll and contractors | 390,254 | 373,490 | – |
| Clinic consultant fee expense | 166,985 | 117,746 | 170,736 |
| Marketing and Gifts | 5,662 | 6,283 | 3,962 |
| Insurance expense | 170,919 | 125,363 | 4,749 |
| Interest Expense | 5,662 | 6,283 | 13,096 |
| Meals and entertainment | 170,919 | 125,363 | 14,191 |
| Charitable contributions | 5,403 | 692 | 2,080 |
| Office expenses | 5,403 | 692 | 5,350 |
| Office supplies | 11,186 | 11,106 | 3,706 |
| Legal and Professional fees | 1,414 | 2,360 | 29,961 |
| Repairs and maintenance | 149,620 | 53,104 | 509 |
| Taxes & Licenses | 1,069 | 638 | 3,629 |
| Telephone expense | 9,557 | 4,840 | 6,135 |
| Travel expense | 20,660 | 4,854 | 8,303 |
| Utilities | 638 | 59,922 | 576 |
| Total operating expenses | 1,297,129 | 1,325,754 | 335,612 |
| Net Income | 964,033 | 600,994 | 331,690 |
100% Chiropractic is a very profitable business for the franchisor, with retained earnings of $964,033 in 2021. Compared to $331,690 in 2019, they saw an increase of almost 300% from 2019 to 2022. This is a good indication of high growth as a company overall.
However, the huge sums of interest and late fees above are a red flag. In 2021, almost 15% of 100% Chiropractic’s revenue was from those fees. You should understand the interest and late fee structure before starting a 100% Chiropractic franchise.
Summary
100% Chiropractic, founded by Drs. Jason and Vanessa Helfrich in 2004, is a wellness-oriented chiropractic care provider that emphasizes a holistic and preventive approach to healthcare. The franchise has received accolades for its growth and exceptional customer service, positioning itself as a progressive and innovative player in the healthcare industry.
The initial franchise fee is $50,000, with an estimated total investment ranging from $331,124 to $459,600. Franchise owners can expect to pay ongoing fees such as a 6.5% royalty, a 10% billing fee, and a $750 monthly marketing fee. Based on median sales, it may take around 4.75 years to recoup the investment at a 15% profit margin.
100% Chiropractic has experienced significant growth, with retained earnings increasing by almost 300% from 2019 to 2021. The franchise has been expanding at a rate of 9 units per year over the last three years.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Healthcare industry.
