FYZICAL Therapy & Balance Centers is the largest PT franchise in the US with over 440 open locations and growing. Their primary differentiator is their proprietary balance and fall prevention program that allows them to help people with vestibular and balance related issues which affect everyone from kids to senior citizens and is grossly under treated in other practices. 69 million Americans in the U.S. age 40 or older have experienced some vestibular dysfunction and 1 in 4 people of the age 65+ experience a serious fall causing a hospitalization every year. This franchise can be ran semi-absentee and the owner does not need to have a medical background.

FYZICAL was founded in 2012 by franchise industry veteran Jim Abrams (Founder of Ben Franklin Plumbing, One Hour Heating & Air, Mr. Sparky Electric). The demand for physical therapy services is strong and getting stronger. Fueled by the aging population, early hospital discharges and mobility issues due to obesity and diabetes, the U.S. PT industry is forecasted to grow by 6.2% annually and be worth over $45 Billion by 2023. A typical location is 1500 – 2500 square feet and has a balance center built in with specialized equipment that they utilize. A new location will start with just three employees and new PT’s will be added as growth demands.

Absolutely no PT or medical background is required. Their franchisees hire PT’s to work as their employees and provide patient care. Franchisees primary role is hiring staff, ensuring staff are trained via their FYZICAL franchise training and their online FYZICAL College portal, managing the metrics, networking and community outreach.

Key Points

• Proprietary balance and fall prevention program that is unique to FYZICAL. Other PT practices do not provide same treatment
• As a franchisee you are hiring degreed professionals, not hourly employees. To build a business that does $1M in revenue, you need 7 employees
• Ability to add cash based services like hearing aid and orthotic sales which are very profitable. Their corporate locations average $1.1M and 22.6% EBITDA and this is reflected in their Item 19
• Low up front investment to get started. The average cost to open a FYZICAL location is $300,000 – $350,000 and this includes 5 months of working capital. They utilize low cost real estate since they do not need to be in Class A real estate. Their build out cost is very reasonable since the space is a wide open box
• Most independent PT clinic owners are so busy treating patients that they have no time to focus on the growth of their business. PT.’s are great at treating patients but not good at running businesses. They receive zero business training in school
• PT is an essential service and absolutely recession resistant. Even during the recession of 2008-2010, the PT industry grew at double digit rates. All of their locations were able to stay open for business during the pandemic. Although they did see a dip in revenues during the pandemic, by July of 2020 their locations had bounced back and were actually outpacing 2019 revenues. This is depicted in their Item 19

Ideal Candidate
Ideal candidate has experience managing and incentivizing a team. Main roles include hiring and training of staff, tracking key metrics, ensuring marketing plan is being implemented, financial tracking, working with Ops team to ensure success of practice, networking.