Have you ever considered opening a healthcare business, but you’re nervous because you don’t know what’s involved? Or maybe you’re looking to become part of a healthcare franchise, but you aren’t sure of the steps to get you there. If you’re new to franchising and you’re interested in opening a business in the healthcare industry, keep reading.
Related Blog: Pros & Cons: Starting Your Own Physical Therapy Practice vs. Franchising your PT Practice
Whether you’re a clinical professional or an entrepreneur, franchising can seem like a scary process. The idea of starting and running a day-to-day business can feel overwhelming. There are so many factors to consider: how much capital do I need? What are the financial risks? How do I choose a successful company? Who will run my business, and what if I don’t have any experience?
First, let's talk about franchising. What exactly is it? In simple terms, franchising is a way to expand business operations into new markets across diverse geographic territories. Franchisors award a license to a franchisee allowing them to use the company's trademarks, branding, proprietary operating processes, training, and access to ongoing support from the startup phase and beyond. To acquire the license, the franchisee pays a fee to the franchisor to secure a territory, along with a royalty fee on a monthly basis for ongoing support.
While the franchisor is "lending" the company's name and resources, the actual business itself is owned 100% by the franchisee. They make all the day-to-day operational decisions, things like hiring and firing.
How do I find a good franchise? When deciding upon a franchise, it's important to look at the numbers and the growth potential. How many locations do they have? Are they a growing franchise? Is there an opportunity for expansion in your market? Is there a need?
The physical therapy industry is in extremely high demand and is growing at an exponential rate. The industry is projected to grow from n fact, Americans 65 and older make up 15% of the population. It’s estimated that by 2060, that number will increase to 25%, and as the population ages, the demand for physical therapy will continue to increase, too.
Physical therapy is also a fragmented industry, which means there is no clear leader in the industry. In fact, the top 20 providers capture just 21% of the market share, which means there are a lot of independent practices out there and room for a growth leader. In short, there is no slowing down in the demand for physical therapy and unlimited potential for growth.
Why should you consider a healthcare franchise model instead of opening your own independent practice? There are many reasons to consider a franchise. For example, as an independent owner:
So you've read a little about FYZICAL, and you're intrigued and want to know more. Firstly, if you're considering franchising, you want to ensure you align yourself with a profitable brand and a proven business model. Designated by Franchise Business Review's "2023 Top Recession-Proof Franchise" and "2021 Most Profitable Businesses", FYZICAL is the largest physical franchise in the world. Also named "Top Brand to Buy", by Franchise Times and "#1 Physical Therapy Franchise" by Entrepreneur Magazine, FYZICAL has over 500 open locations across the U.S. We take the guesswork out of franchising by offering proven business models, hands-on world-class training, and opportunities very unique to the marketplace.
"Our primary focus at FYZICAL is traditional orthopedic therapy and rehabilitation from surgeries or injuries," says Scott Wendrych, Chief Development Officer at FYZICAL. "However, we also have a variety of other kinds of modalities and treatments that we offer should locations want to offer those treatments as well."
Some of these include pediatric physical therapy, hand-specific therapy, massage therapy, chiropractic services, and our world-renowned proprietary Balance Paradigm and Sensory Mismatch Theory.
What types of business models does FYZICAL offer? FYZICAL can meet you where you're at and offers flexible, proven business models. Whether you're an entrepreneur looking to invest, a clinician looking to partner with FYZICAL, a clinician looking to open a practice, or a clinician looking to add on services to an existing practice, FYZICAL offers a variety of business models to fit your needs.
In order to be successful in franchising, you have to have a special niche. At FYZICAL, we offer the #1 Balance and Vestibular Program in the world. FYZICAL's proprietary Balance Paradigm and Sensory Mismatch Theory are two groundbreaking services only available at FYZICAL.
“There are very few providers of this type of therapy out there," says Wendrych.
"More than 10 million people go to the doctor for dizziness each year, but finding specialized balance therapy services can be difficult and oftentimes leads to falls," says Wendrych. "Falls are the leading cause of fatal and nonfatal injuries among older adults. Additionally, 40% of the U.S. population will experience clinical dizziness or balance difficulty in their lifetime. Combine that with the fact that physical therapists have very little training in dealing with balance and vestibular patients, so FYZICAL's Balance Program creates an amazing niche to tap into and helps create a competitive edge.”
Article: FYZICAL Balance Program: Differentiation Means Dollars in Franchising
In a franchised business, you have a team of experts who act as consultants to the owner and help you with all aspects of starting and running a business. At FYZICAL, this means everything from:
"We have experts that are specialists in franchising and also experts that are specialists in the physical therapy industry," says Rick Douglass, President of Franchise Operations. "Most of our operations team have been owners or operators of independent franchise locations or worked in the franchise industry for years. You don’t have to go about this process alone."
One of the biggest questions often asked when clinicians or entrepreneurs partner with FYZICAL or open a new location is, "How do I find patients for my business?"
There are two major client segments: consumers and referrals.
At FYZICAL, we take a tiered approach to marketing your business to ensure the best possible profitability outcomes.
What's the timeline from initiation to operation?
Much of that depends on the time it takes to lease the appropriate space, but on average, from the time you sign the franchise agreement and become a franchisor to the time you open your doors. It takes 8-9 months.
What are the operational costs?
It's going to vary widely based on your market. Your main cost structure is going to be your cost of labor - your physical therapists, your front desk staff, your liaison and marketing efforts, and your rent. Those will be your largest costs. Other costs will include things like insurance for the property and software costs. Download FYZICAL's Investment Opportunity Guide to learn more.
What is the definition of a successful franchisee at FYZICAL?
Your definition of success and FYZICAL's definition of success might look very different. The reality is that this is your business. For the first 12 months, whether you're in FYZICAL or any franchise system, really follow the playbook. You're getting involved in franchising for a reason, and hopefully, that reason is that you're looking for guidance and a proven playbook. Be coachable.
Also, be engaged. We know the most engaged franchisees that we have are the most successful. Being engaged as a franchisee is going to make you much better at running your business. One of the advantages of being part of a franchise system is that you're not alone. If you were to open your own physical therapy practice, who are you going to talk to? Who are you going to bounce ideas off of? Who are you going to share war stories with? Whose shoulder are you going to cry on? Who are you going to high-five when things are going great?
It can be lonely. But being a part of a franchise system, you've got these people who are in your market. You've got people who understand what you're going through and can help you. Being engaged is a really good measure of being a successful franchisee.
If you have questions about franchising with FYZICAL, we've got answers. Contact us today to learn more about the process!
"The way they laid out the business model, the KPI's, the metrics...the process made me feel like I could come into this brand-new industry - from the technology industry - and really be successful! For me, that was what closed the deal.
I've done a lot of startups - this is the first time I had someone line up all the dominoes for me so that I could knock them down. It was awesome. FYZICAL is set up well, and they've been there to support me."
- FYZICAL Franchisee
"The process is solid. Most startups fail within five years, and a lot of smaller practices are getting rolled up, going out of business, or retiring because they don't have the right business model. FYZICAL does, and we're able to grow. They have the right balance of equipping, supporting, and giving us the flexibility to do our own thing."
- FYZICAL Franchisee
Are you a licensed physical therapist who dreams of clinic ownership but lacks the resources to do it alone? Check out FYZICAL's Partnership Advantage Program, where we match qualified physical therapists with well-funded entrepreneurs to establish, build, and grow clinics together!
Hear How Non-Clinical Owners are Thriving with FYZICAL
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Resources You'll Love:
The Comprehensive Guide to the FYZICAL Investment Opportunity - No Healthcare Experience Required
How to Fund Your Physical Therapy Practice
Love Your Life: Start Your Own Physical Therapy Practice with FYZICAL
Webinar: Healthcare Franchising 101: Is Franchising for Me?