The Economics Of The Joint Chiropractic » The Smart Chiropractor Blog (2023)

Table of Contents

  • How does The Joint Chiropractic Make Money?
  • What is The Joint Chiropractic?
  • The Joint Chiropractic: By the Numbers:
  • How Many Clinics Does The Joint Chiropractic Have?
  • How Much Does it Cost to start a The Joint Chiropractic Franchise?
  • What’s the Difference Between The Joint and Other Chiropractic Clinics?
  • The Joint Chiropractic Salary: It’s Good to be Green
  • Is The Joint Good for Chiropractic?

Over the past 10 years, The Joint Chiropractic has flourished.

Today, over 600 franchises are spread throughout the world.

That’s more locations than the other top ten chiropractic franchises combined.

Did You Know…

On average, a new Joint opens every 48 hours.

Collectively, chiropractic is a $16 billion industry in the US.

Yet, it’s fragmented.

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Over 95% of chiropractic practices are independent, and the top 3 chains make up less than 3% of the market.

After an explosive 28% revenue boost in the last year, The Joint now has an annual revenue projected to be over $70 million.

How does The Joint Chiropractic Make Money?

The margins at The Joint are famously good.

Profit Margin

Their average profit margin is equivalent to huge companies like Target (28%) and Walmart (24%).

They achieve these margins through a slick combination of limiting expenses, maximizing patient flow, and proprietary managed services.

The Joint keeps its prices low and has built an entire ecosystem of operations and marketing to help drive patients into their practices.

How many patients?

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Well, last year alone, Joint franchises adjusted over 1 million people.

By offering walk-in services, they don’t deal with an estimated 20-30% loss on missed appointments.

Imagine, for example, that your practice had zero missed appointments next year.

Additionally, they market specifically to people without complex medical and health conditions.

Some say this model hurts chiropractic as a whole, while others welcome the convenience and establishment of the first scalable chiropractic brand.

Startup Costs

The average cost to get a Joint Chiropractic franchise up and running is around $250k.

While at first glance, it may seem like a lot more than most chiropractors spend opening their first practice, this sum is far less than nearly any other franchise out there.

The layout, square footage, and locations of The Joint are all carefully monitored to ensure the highest chance of profitability.

The Joint is betting on a future with price-conscious patients looking to stay healthy, as long as it doesn’t cost them too much money.

The odds of success may be in their favor.

With an executive leadership team that has worked at places like McDonald’s, Aamco, UPS Store, CVS, Walgreens, and United Airlines, this isn’t their first rodeo.

Not only has this executive team helped them achieve an IPO in 2014 but they also have the connections needed to continue to scale.

In 2020, The Joint received an influx of over $7.5 million in capital from JP Morgan Chase structured as post-IPO debt.

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What is The Joint Chiropractic?

The Joint is a franchise of chiropractic clinics focused on a retail approach to bring convenient and affordable chiropractic care.

Franchise Framework

All franchises feature a membership-driven model that is walk-in and cash pay-based.

So what’s the big deal about a membership model?

Well, it’s estimated that over 85% of the revenue generated at a Joint Chiropractic franchise location is based on memberships.

And they’re making a lot of money.

The Joint also takes a unique approach to its marketing.

Focusing less on “medicine” and more on “lifestyle”, they are positioned on the continuum of wellness rather than medical management.

Aspirational messaging and candid photos and stories are typically used to showcase the positive lifestyle benefits of their care.

The Joint Chiropractic: By the Numbers:

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With chiropractic positioned as a $16B market, The Joint is counting on taking advantage of the statistics, which show 50% of Americans don’t know what the word “chiropractic” means, and 30% are scared to see a chiropractor.

Right now, chiropractic chains make up only 3% of the total spending on chiropractic.

However, chains make up approximately 12% of the market in the dental world, so it’s clear that The Joint feels like they have a significant opportunity to grow and potentially 4X over the next few years.

How Many Clinics Does The Joint Chiropractic Have?

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2021: 600

2023: 1,000 (goal)

2025 and beyond: 1,800+

Clinic Count

Currently, The Joint has over 250 clinics in active development.

And with their recent influx of capital and profitability, it’s unlikely their growth will be slowing down anytime soon.

Roughly 10% of their clinic portfolio is corporate-owned and managed, with the remaining 90% structured as franchises.

How Much Does it Cost to start a The Joint Chiropractic Franchise?

Initial Investment

The initial investment to start a franchise of The Joint is approximately $275k.

It’s estimated that the initial build-out cost is $180k, and the franchisee pays a license of $40k, which transitions to a 7% royalty (plus an additional 2% for a marketing fund).

The estimated breakeven is at $25k of monthly gross sales and is expected to take 3.5 years to have a cash-on-cash return.

You’ll also need to have $100k liquid and a total net worth of at least $250k to qualify for franchise ownership.

While these financial requirements aren’t extreme, it’s not uncommon for the franchise owners to be business people and investors as opposed to practicing chiropractors (where legal).

What’s the Difference Between The Joint and Other Chiropractic Clinics?

The Joint is different from many other chiropractic practices in a few distinct ways.

First, The Joint has an average collection of $29 per visit, which is about half the industry standard.

Second, the Joint can save a tremendous amount of money on overhead by being cash or private pay and not accepting insurance.

Having a cash-based business model, The Joint also never has to wait on accounts receivable, insurance denials, or billers.

This could account for at least a 25-40% premium on the cash they collect.

And it is saving them the time and hassles of insurance, giving them a strategic advantage to charge less.

Additionally, they choose retail-based locations instead of medically-based to drive more foot traffic and name recognition.

Did You Know…

It’s not uncommon to find Joint chiropractic in a strip mall next to a grocery store in the suburbs or high-density locations in a city.

A typical Joint location is approximately 1,200 square feet, and with a retail build-out, they can save space and cost associated with rehab spaces, imaging, etc.

Since The Joint is focused on overall health and wellness as opposed to rehab and complex conditions, they can also put a significant amount more volume of patient visits through their practice.

For example, the average number of patient visits per typical chiropractic practice is up to 600 per month, where a Joint franchise can easily be at 1,350+.

The combination of cash payments and the volume provides The Joint with a significant revenue advantage compared to the typical chiropractic practice.

In the healthcare service industry time is money and The Joint has figured out a model that enables incredible patient flow that maximizes the space and revenue per hour of their team.

When you add in corporate, scaled marketing and proprietary EHR and patient management systems, The Joint has strategic business advantages in nearly every way over a local chiropractic practice.

By not accepting insurance and using an adjustment by hand process, The Joint has a COGS (cost of goods sold) extremely low.

That helps pad the business’s profit margins and allows scale without having a tremendous amount of capital outlay.

The Joint Chiropractic Salary: It’s Good to be Green

Average Starting Salary

The Joint boasts a starting chiropractic salary of at least $65k plus additional performance-based bonuses.

The other benefits of ongoing training and support and corporate oversight can make it attractive to chiropractors who may not want to deal with the “business of chiropractic”.

For this reason, The Joint tends to attract newer chiropractors who are looking for stable jobs.

This type of chiropractor, a caregiver, usually isn’t focused on building their own franchise but rather by providing care each day to the patients who come in to see them.

While many chiropractors who seek stability may still dream of practicing in a hospital-based or multidisciplinary clinic, those positions remain few and far between.

With the historic growth, and future projections, of The Joint it appears as though far more of their positions will be available for the foreseeable future.

If you’re looking for a stable job in a company with strong financials, it’s hard to not consider The Joint Chiropractic as one of the better options.

Is The Joint Good for Chiropractic?

The Joint has its fair share of haters, as well as those who praise their unique business model and ability to scale.

So, the question remains…

Is The Joint good for chiropractic?

In our opinion, it’s too early to tell whether The Joint will have a significant impact on the chiropractic profession.

However, we should know more within the next 3-5 years with their growing market share.

For now, The Joint Chiropractic is uniquely positioned as a low-cost, readily available, membership-based chiropractic chain that provides adjustments to those who need a quick crunch.

Most chiropractors, especially those with specific niches, shouldn’t be concerned about “competition” from The Joint.

Most chiropractors, their business model, ideal client, and operations are so wildly varied that worrying about The Joint would be like Nobu being concerned about a P.F. Changs.

The Economics Of The Joint Chiropractic » The Smart Chiropractor Blog (6)

If you’re an investor, is The Joint a good franchise?

This isn’t investment advice, but it looks as though The Joint has grown and will continue to grow for the foreseeable future.

Their marketing, target market, operations playbook, and franchise model appear to be performing very well.

So, we guess, as they say, roll ’em if you’ve got ’em.


How does the joint make money? ›

Franchise Framework

All franchises feature a membership-driven model that is walk-in and cash pay-based. So what's the big deal about a membership model? Well, it's estimated that over 85% of the revenue generated at a Joint Chiropractic franchise location is based on memberships. And they're making a lot of money.

Are chiropractic businesses profitable? ›

Chiropractic practices and other healthcare practices are listed as the fifth most profitable type of business by Forbes Magazine. The magazine used “average pre-tax margin” as its benchmark, stating that chiropractic practices have an average pre-tax margin of 17.5 percent.

Where do chiropractors make the most money? ›

You'll want to research what's common for a chiropractor to earn in the area where you want to practice. Alaska, Massachusetts, Nevada, New Jersey and Arkansas are home to the highest-paid chiropractors, making between $97,380 and $116,340 a year, according to the BLS.

How can a chiropractor make extra money? ›

Chiropractic Economics' 2022 survey found that roughly 11% of an average chiropractor's income is derived from retail sales, such as nutritional products. In addition to products to sell in your practice, you can also increase revenues via affiliate marketing to increase passive chiropractic practice income.

Is the joint chiropractic a good investment? ›

The fastest growing chiropractic franchise is a smart investment for entrepreneurs and chiropractors seeking to own a business The Joint Chiropractic revolutionized the $15 billion chiropractic industry by making chiropractic care more accessible, convenient and affordable than ever before.

What is the average profit margin for chiropractor? ›

Top 6 Things to Know About the Chiropractic Industry

Typical Revenues: The “average” chiropractic office nationwide was estimated to gross $380,300 in revenues in 2019, with a 28% profit margin.

Can a chiropractor be a millionaire? ›

In many cities, there are practices where the chiropractic owner can take home over $1,000,000 per year.

What is the best business structure for a chiropractor? ›

A: The most common legal structures for chiropractic practices are professional corporations, limited liability companies (LLCs), and partnerships. A chiropractic lawyer can help you determine the best structure for your specific needs and guide you through the process of establishing the appropriate legal entity.

What is a chiropractor top salary? ›

Chiropractors made a median salary of $75,000 in 2021. The best-paid 25% made $98,760 that year, while the lowest-paid 25% made $50,470.

What state is best for chiropractors? ›

Are you thinking of becoming a chiropractor and really want to work at The Joint Chiropractic? Turns out, your chances are better in some states than others. Our research found that Vermont is the best state for chiropractors, while Vermont and Minnesota are ranked highest in terms of median salary.

Which state has the most chiropractors? ›

California (7,489 businesses), Florida (5,008 businesses) and Texas (4,596 businesses) are the States with the most number of Chiropractors businesses in the US.

What state has the least amount of chiropractors? ›

Number of chiropractors employed in the U.S. 2022, by state

As of May 2022, the estimated chiropractors employed in the United States ranged from around 80 chiropractors to around 3,050 by state. That year, Florida registered the highest number of chiropractors, whereas West Virginia had the lowest.

Is chiropractic a respected profession? ›

Many people respect people who work in the medical field. As chiropractors are medical providers, this career often commands respect from others. Patients and community members alike may value and appreciate your knowledge and the care you provide, causing them to respect you.

Can a chiropractor over adjust you? ›

Yes, overly aggressive spinal manipulation can be the cause of spinal instability, but when done correctly it can cause immediate (or quick) relief of symptoms.

Is chiropractic becoming more popular? ›

In the U.S., doctors of chiropractic treat almost 27 million Americans annually. That's 1 million chiropractic adjustments performed every business day. Chiropractic care is increasing in popularity.

What is the annual revenue of the joint chiropractic? ›

SCOTTSDALE, Ariz., March 09, 2023 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter and year ended December 31, 2022. Grew revenue 26% to $27.8 million.

What does the joint do? ›

A joint is the part of the body where two or more bones meet to allow movement. Generally speaking, the greater the range of movement, the higher the risk of injury because the strength of the joint is reduced. The six types of freely movable joint include ball and socket, saddle, hinge, condyloid, pivot and gliding.

How much it is to own a joint? ›

How much does The Joint franchise cost? The total investment estimate to begin operations on a new franchise location with The Joint ranges between $215,297 to $476,997**. The franchise fee for your first franchise with The Joint is $39,900**. The Joint also honors military veterans.

What is joint franchise? ›

A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark.

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