FYZICAL Therapy Franchise Sales, Costs & Profits (2023)
The leading US physical therapy franchise, FYZICAL Therapy has 416 franchised businesses in the US today. It’s all the more impressive when you realize they only started franchising in 2013..!
So if you’re looking for a franchise in the medical industry with solid underlying market fundamentals, you should seriously consider FYZICAL Therapy.
What about the financials? On average, you would spend $200,000 to open a new franchise, and one franchise makes on average $1,028,000 per year. Interested?
In this article we’re looking at FYZICAL Therapy and its latest FDD to find out how much it (really) costs, and how profitable it really is. Let’s dive in!
Key stats
| Franchise fee | $49,000 |
| Royalty fee | 6.0% |
| Marketing fee | 2.0% |
| Investment (mid-point) | $200,000 |
| Average sales | $1,028,000 |
| Sales to investment ratio | 5.2x |
| Payback period | 3-4 years |
| Minimum net worth | $150,000 |
| Minimum liquid capital | $150,000 |
About FYZICAL Therapy
Headquartered in Sarasota, Florida, FYZICAL Therapy & Balance Centers is a physical therapy franchise that offers a medically based approach to health and wellness through comprehensive patient care using unique balance protocols and healthy lifestyle products and services.
The center was founded in 2012 by Jim Abrams and has grown into one of the largest physical therapy franchises in the country, expanding into multiple locations.
FYZICAL Therapy & Balance Centers uses a franchise model to help private practitioners such as entrepreneurs, physical therapists and physical therapy practice owners to take control of their lives. It helps business owners with large, multi-clinic practices, solo practices and start-up practices in large cities, local communities or small towns achieve their goals as they build patient relationships and connections in the communities they serve.
FYZICAL Therapy & Balance Centers began franchising in 2013 and by 2022 had 473 locations in operation, with 416 franchises in the US.
FYZICAL Therapy 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.
FYZICAL Therapy franchise costs
To open a FYZICAL Therapy franchise you would have to invest on average:
- $213,000 to open a new FYZICAL franchised center (with a licensed operating principal)
- $250,000 to open a new FYZICAL franchised center (with a licensed clinical director)
- $108,000 if you choose to convert an existing wellness center to a FYZICAL franchised center
- $227,000 if you add a FYZICAL franchised center to an ENT practice
The investment covers all the start-up costs you may need to open FYZICAL franchised Centers. You must pay the franchisor an initial franchise fee of $49,000. In addition to this franchise fee, the investment also covers:
- Formulation costs: lease deposit and rent, build-out and improvements, security system, signage, branding, design, etc.
- Equipment: computer system, furniture, fixtures, equipment, etc.
- Operating costs: training expenses, utility deposits, business licenses, and other prepaid expenses, insurance, miscellaneous opening costs, additional funds for 5 months, etc.
Startup costs (New Center – with a licensed operating principal)
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $49,000 |
| Formulation costs | $16,000 – $132,500 |
| Equipment | $16,000 – $53,000 |
| Initial Marketing | $1,000 – $5,000 |
| Operating costs | $32,750 – $72,000 |
| Total | $113,750 – $311,500 |
Startup costs (New Center – with a licensed clinical director)
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $49,000 |
| Formulation costs | $15,000 – $132,500 |
| Equipment | $16,000 – $53,000 |
| Initial Marketing | $1,000 – $5,000 |
| Operating costs | $57,750 – $122,000 |
| Total | $138,750 – $361,500 |
FYZICAL Therapy Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
Startup costs (Conversion Center)
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $49,000 |
| Formulation costs | $500 – $67,500 |
| Equipment | $0 – $7,000 |
| Initial Marketing | $1,000 – $5,000 |
| Operating costs | $7,750 – $28,500 |
| Total | $58,250 – $157,000 |
Startup costs (ENT Affiliate Center)
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $49,000 |
| Formulation costs | $10,500 – $182,500 |
| Equipment | $15,000 – $53,000 |
| Initial Marketing | $1,000 – $5,000 |
| Operating costs | $31,750 – $57,000 |
| Total | $107,250 – $346,500 |
FYZICAL Therapy franchise fees
The initial franchise fee for a FYZICAL Therapy franchise is $49,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.0% of revenues, as well as a variable marketing fee of 2.0% of revenues.
FYZICAL Therapy franchise revenue
On average, FYZICAL franchise centers make $1,029,000 in sales per year.
This number is the average sales per franchise center for 349 of the 388 franchised centers that operated in all of 2020. This is a decrease vs. 2019 (-8.5%, $1,124,000).
Note that gross revenue vary significantly from one center to another, ranging from $74,000 up to $8 million for the most successful franchise..!
Is FYZICAL Therapy a good franchise investment?
If we compare the initial investment upfront the expected future profits of the franchise, we obtain what we call the payback period. In other words, the time it takes for an investment (like investing in a franchise) to repay itself with the profits it generates.
For example, if we use the $212,000 average investment for a New Center with a licensed operating principal, we find that FYZICAL has a 3-4 years payback which is excellent.
Indeed, as per our estimates it would take you on average 3 to 4 years to repay investors and creditors (e.g. the bank) with the profits generated by the franchise itself.
Note that we assumed a 10% net profit as well as a 2 year revenue ramp-up as you wouldn’t reach the average revenue per franchise of $1 million on day one.
FYZICAL Therapy Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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