FYZICAL Therapy Franchise Costs $60K – $479K (+ 2024 Profits)

FYZICAL Therapy & Balance Centers is a prominent player in the healthcare franchise sector, specializing in physical therapy with a unique emphasis on balance and vestibular rehabilitation. Founded in 2012 and headquartered in Sarasota, Florida, FYZICAL has rapidly expanded its reach across the United States.

The franchise began offering opportunities in 2013 and has shown strong financial performance, with company-owned centers reporting average revenues exceeding $1 million annually.

FYZICAL distinguishes itself from competitors by focusing on proprietary balance programs and other specialized services that are not widely available. These include vestibular rehabilitation, concussion management, and fall prevention, addressing a critical need in a healthcare market where balance-related issues are prevalent but often underserved.

Type of Expenditure	Amount
Initial Franchise Fee	$49,000
Training Expenses	$1,750 to $5,000
Lease Deposit & Rent	$4,000 to $15,000
Build Out & Improvements	$64,000 to $220,000
Security System	$500 to $2,000
Computer System	$1,000 to $3,000
Furniture, Fixtures and Equipment	$15,000 to $50,000
Signage, Branding, Design	$500 to $15,000
Grand Opening Advertising	$1,000 to $5,000
Utility Deposits, Business Licenses & 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 (5 months)	$25,000 to $50,000
Total Estimated Initial Investment	$167,000 to $429,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

If you opt to open 1 Center, you will pay an initial franchise fee of $49,000. For multiple Centers opened concurrently, the fee for the first Center is $49,000, $35,000 for the second, and $20,000 for each additional Center.

Royalty Fee

The Royalty Fee is based on a percentage of Gross Revenues or a minimum guaranteed amount, whichever is greater:

• Year 1: 6% of Gross Revenues or $1,000 per month
• Year 2: 6% of Gross Revenues or $2,000 per month
• Year 3 and thereafter: 6% of Gross Revenues or $3,000 per month

Marketing/Advertising Fee

Contributions to the Marketing Fund can be up to 2% of gross revenue per month. These contributions are used for national marketing and branding efforts.

Lease or Rent Fee

Rent ranges from $5 to $35 per square foot, dependent on location and market conditions. Security deposits equivalent to one or two months’ rent may also be required.

Transfer Fees

A Transfer Fee equivalent to 10% of the then-current initial franchise fee for your Protected Area is required when transferring the franchise.

Renewal Fees

Renewal fees are set at 10% of the then-current initial franchise fee for your Protected Area.

Franchise pros and cons

The Pros:

• Passive investment opportunity: FYZICAL Therapy & Balance Centers offers its franchisees an absentee ownership investment model. Franchisees can run the business alongside other investments and keep their 9-to-5 jobs.
• Exclusive territory protection: The franchisor grants its franchisee the right to operate in an exclusive protected territory. Under the agreement, it does not establish a competing business or authorize other franchises to operate in the designated location.
• Flexible franchise models: The franchise has designed different franchise models to help franchisees with different levels of expertise and budgets fit into their system. Franchisees can choose either the start-up, non-clinical investor, convert clinic to franchise, or add-on service model.
• In-depth training: The franchisor offers franchisees detailed online and classroom training to equip them with knowledge about the business concept and everything from bookkeeping, operations, sales and staff management.
• Site selection and planning: The franchisor provides its franchisees with site selection assistance to identify a suitable location for their clinics. Also, it helps them with planning and build-outs to get the most out of the available real estate opportunities.
• Third-party financing: The brand offers its franchisees financing through third-party lenders to cover their franchise fees, startup and ongoing costs.
• Marketing and advertising: The franchisor has established reliable marketing and advertising systems to help franchisees with branding and promoting their services and products. These include national media, social media, SEO, email marketing and individualized center advertising campaigns.

The cons:

• Not a home-based opportunity: The franchise cannot be run from home or a vehicle. Franchisees must have an office space, warehouse or retail facility to operate from.
• Not a part-time business: The franchisor requires franchisees to have their centers open full-time for at least 40 hours per week.
• No global presence: The franchise does not have international locations, making it less attractive outside the US.

How to open a FYZICAL Therapy franchise

Opening a FYZICAL Therapy & Balance Centers franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a FYZICAL Therapy & Balance Centers franchise.

1. Initial Inquiry and Information Gathering

• Request Information: Start by requesting more detailed information about the franchise opportunity directly from FYZICAL. This usually involves filling out an inquiry form on their franchise website.
• Review Franchise Disclosure Document (FDD): Once you contact FYZICAL, they will provide you with their Franchise Disclosure Document which contains essential details about the business, financial requirements, and legal obligations.

2. Financial Assessment and Qualification

• Assess Financial Requirements: Review your financial situation to ensure you meet the minimum investment and net worth requirements specified by FYZICAL.
• Pre-Qualification: Undergo the pre-qualification process which may include background checks and initial financial assessments to ensure eligibility.

3. Participate in Discovery Day

• Visit Headquarters: Attend a Discovery Day at FYZICAL’s headquarters in Sarasota, Florida. This is an opportunity to meet the team, understand the company culture, and get a firsthand look at the operations.
• Engage with Key Personnel: Use this time to ask questions and engage with executives and support staff. This will help you gain a deeper understanding of how FYZICAL supports its franchisees.

4. Secure Financing

• Funding Arrangements: If you don’t have the capital upfront, explore financing options. FYZICAL may offer guidance on financing through third-party lenders or might have partnerships with financial institutions familiar with their franchising model.

5. Location Selection and Approval

• Territory Analysis: Work with FYZICAL to identify and approve a suitable location. The franchisor typically assists with market analysis and site selection to find a location with high potential for success.
• Lease Negotiation and Signing: Once a location is selected, negotiate the lease terms and finalize the agreement with the landlord, often with support from FYZICAL’s real estate team.

6. Training and Clinic Setup

• Undergo Training: Complete the comprehensive training program provided by FYZICAL. This includes clinical training as well as business management, marketing, and operational training.
• Clinic Design and Equipment: Follow guidelines provided by FYZICAL to set up your clinic, including purchasing the necessary equipment and designing the space according to their established brand standards.

Disclaimer

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