In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Fyzical Therapy & Balance Centers franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Fyzical Therapy & Balance Centers franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Fyzical Therapy & Balance Centers outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Fyzical Therapy & Balance Centers franchise opportunity

Section V – Presentation and analysis of Fyzical Therapy & Balance Centers’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 aggregate, average, median, highest, and lowest gross revenue for the 42 company-owned centers that Fyzical’s affiliates owned and operated that had revenue for every month of the calendar year 2023 and meet Fyzical’s recommended square footage of at least 2,000 square feet as of December 31, 2023 (“2023 Centers”)

• 2023 aggregate, average, median, highest, and lowest gross revenue per full-time equivalent clinician that are utilized to provide the services at the 2023 Centers

• 2023 patient visits, cases, patient visits/case at the 2023 Centers

• 2023 aggregate, average, median, highest, and lowest gross revenue for the 76 franchisees that operated one or more Fyzical Centers for the full 2023 calendar year and reported revenue for all 12 months of the 2023 calendar year (“2023 Participating Franchisees”)

• 2023 aggregate, average, median, highest, and lowest gross revenue per full-time equivalent clinician that are utilized to provide the services at the 2023 Participating Franchisees

Section VI – Key ratios, comparables, computations, and analyses for the Fyzical Therapy & Balance Centers franchise opportunity (exclusive content for Platinum subscribers)

Section I – Fyzical Therapy & Balance Centers Franchise Costs

• Initial Franchise Fee:  $49,000
• Grand Opening Marketing Fund:  $5,000 to $18,000
• Training Expenses (including reasonable food, lodging, and travel – per person):  $1,750 to $5,000
• Lease Deposit and Rent:  $4,000 to $15,000
• Build Out and Improvements:  $39,000 to $187,000
• Security System:  $500 to $2,500
• Computer System:  $1,000 to $3,000
• Furniture, Fixtures, and Equipment:  $15,000 to $50,000
• Signage, Branding, Design:  $500 to $15,000
• Utility Deposits, Business Licenses, and Other Prepaid Expenses:  $1,000 to $5,000
• Insurance (12 months):  $3,000 to $5,000
• Miscellaneous Opening Costs:  $1,000 to $5,000
• Additional Funds (9 months):  $75,000 to $150,000
• Total Estimated Fyzical Therapy & Balance Centers Franchise Costs:  $195,750 to $509,000

Section II – Fyzical Therapy & Balance Centers’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $20,000 to $49,000
• Royalty:  year 1: greater of $1,000 per month or 6% of Gross Revenue generated in the preceding month; year 2: greater of $2,000 per month or 6% of Gross Revenue generated in the preceding month; years 3-10: greater of $3,000 per month or 6% of Gross Revenue generated in the preceding month
• Marketing Fund Contribution:  currently not charged; estimated to be up to 2% of Gross Revenue per month

Section III – Number of Franchised and Company-Owned Fyzical Therapy & Balance Centers Outlets

Franchised

2021

• Outlets at the Start of the Year:  388
• Outlets at the End of the Year:  392
• Net Change:  +4

2022

• Outlets at the Start of the Year:  392
• Outlets at the End of the Year:  444
• Net Change:  +52

2023

• Outlets at the Start of the Year:  444
• Outlets at the End of the Year:  494
• Net Change:  +50

Company-Owned

2021

• Outlets at the Start of the Year:  30
• Outlets at the End of the Year:  54
• Net Change:  +24

2022

• Outlets at the Start of the Year:  54
• Outlets at the End of the Year:  55
• Net Change:  +1

2023

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  60
• Net Change:  +5

Section IV – News Updates on the Fyzical Therapy & Balance Centers Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Fyzical Therapy & Balance Centers Franchise (Item 19, 2024 FDD)

Part 1 – Company-Owned Centers

• Fyzical does not own or operate any Fyzical Center. For the purposes of Item 19, Centers owned by Fyzical’s affiliates are referred to as “Company-Owned Centers”.

• As of December 31, 2023, Fyzical’s affiliates owned 60 Centers. The following chart demonstrates financial performance information for fiscal year 2023 at 42 of the Company-Owned Centers that Fyzical’s affiliates owned and operated that had revenue for every month of the calendar year 2023 and meet Fyzical’s recommended square footage of at least 2,000 square feet as of December 31, 2023 (“2023 Centers”).

A.  2023 Gross Revenue

2023 Centers

• Aggregate Gross Revenue:  $37,902,550
• Average Gross Revenue:  $902,442
• Centers That Met or Exceeded Average Gross Revenue:  18/42 (43%)
• Median Gross Revenue:  $808,215
• Highest Gross Revenue:  $1,967,985
• Lowest Gross Revenue:  $257,163

• The term “Gross Revenue” means all revenue derived from operating a Center, including, but not limited to, all amounts received from any activities or services whatsoever, whether at or away from the Center, including any products or services that are in any way associated with the Marks, and whether from cash, check, barter, debit, or credit (regardless of collection in the case of credit), less: (i) promotional discounts or coupons required by Fyzical; (ii) patient refunds, adjustments, credits, or allowances made by the Center in good faith and in accordance with Fyzical’s policies; and (iii) all federal, state, or municipal sales, use, or service taxes collected from patients and paid to the appropriate taxing authority.

• Aggregate Gross Revenue is the sum total of all Gross Revenue earned by the applicable Centers.

B.  2023 Gross Revenue Per Full-Time Equivalent Clinician

• The following chart presents the number of full-time clinical employees or equivalent (“Equivalent Clinicians”) that are utilized to provide the services at the 2023 Centers.

• Clinical employee is defined as anyone with the title of Clinical Director, Physical Therapist, Physical Therapy Assistant, Occupational Therapist, or Regional Assistant Director. The numbers do not reflect other employees that may be employed at the Center but do not provide physical therapy services.

2023 Centers

• Annual Aggregate Gross Revenue:  $37,902,550
• Weighted Average Number of Full-Time Equivalent Clinicians:  186
• Average Gross Revenue Per Full-Time Equivalent Clinician:  $210,798
• Centers That Met or Exceeded the Average:  12/42 (29%)
• Median Gross Revenue Per Full-Time Equivalent Clinician:  $202,563
• Highest Gross Revenue Per Full-Time Equivalent Clinician:  $362,491
• Lowest Gross Revenue Per Full-Time Equivalent Clinician:  $102,948

• Annual Gross Revenue also includes ancillary products and services sold at the Centers in addition to physical therapy.

• Weighted average number of full-time Equivalent Clinicians is a standard and revenue-weighted average calculation that is used to ensure accuracy and to prevent overstating of Average Gross Revenue per full-time Equivalent Clinician. Specifically, this is the sum of the product of each month’s number of full-time Equivalent Clinicians and associated revenue, all divided by the sum of revenue for all months.

• Average Gross Revenue per full-time Equivalent Clinician is calculated by dividing the Annual Gross Revenue by the weighted average number of full-time Equivalent Clinicians.

C.  Patient Visits/Cases

• The following chart presents the actual number of Patient Visits and Cases for fiscal year 2023 at the 2023 Centers.

• “Patient Visits” is the total number of patient treatments that were billed and include multiple visits per patient. Thus, a patient who undergoes 10 therapy sessions is listed as 10 Patient Visits.

• A “Case” refers to an individual treatment plan for an individual patient. Some patients have multiple treatment plans and they may be administered during the same or different time intervals. For example, a rehabilitating knee patient may return for balance therapy during the same overlapping timeline, or a different treatment period.

2023 Centers

• Patient Visits:  440,939
• Cases:  38,767
• Patient Visits/Case:  11.37

• This table includes visits and case data for Fyzical’s “Orthopedic & Traditional” Physical Therapy Visits. Balance, pelvic, and audiology related visits are not included due to their vast differences in lengths for plan of care.

Part 2 – Franchisee-Owned Centers

• The following charts present financial performance information collected from 76 franchisees that operated one or more Fyzical Centers for the full 2023 calendar year and reported revenue for all 12 months of the 2023 calendar year (the “2023 Participating Franchisees”). The 2023 Participating Franchisees operate a total of 159 Centers as of December 31, 2023.

• A total of 417 franchised Centers were open for the full 2023 calendar year. Not all franchisees reported this information.

• Fyzical has not independently verified the accuracy of the information provided by its franchisees.

A.  2023 Gross Revenue for All 2023 Participating Franchisees

2023 Participating Franchisees

• Average Gross Revenue:  $756,043
• Franchisees That Met or Exceeded Average Gross Revenue Per Clinic:  33/76 (43%)
• Median Gross Revenue:  $710,805
• Highest Gross Revenue:  $2,666,562
• Lowest Gross Revenue:  $99,000
• Revenue Per Visit:  $92.42

• Franchisees that operated more than one Fyzical Center reported their financial performance information in the aggregate (and not by clinic).

B.  2023 Gross Revenue Per Full-Time Equivalent Clinician for All 2023 Participating Franchisees

2023 Participating Franchisees

• Average Gross Revenue Per Full-Time Equivalent Clinician:  $202,201
• Franchisees That Met or Exceeded the Average:  28/76 (37%)
• Median Gross Revenue Per Full-Time Equivalent Clinician:  $194,327
• Highest Gross Revenue Per Full-Time Equivalent Clinician:  $432,415
• Lowest Gross Revenue Per Full-Time Equivalent Clinician:  $56,719

• Franchisees that operated more than one Fyzical Center reported their financial performance information in the aggregate (and not by clinic).

• The lowest performing Center does not follow recommended operational or marketing processes.

• Some Centers have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Fyzical Therapy & Balance Centers Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️