QC Kinetix had no franchise locations in operation in 2020. However, by the end of 2021, the regenerative medicine brand saw its franchisees launch 59 clinics alongside 11 corporate units.
This rapid expansion, according to CEO Justin Crowell, highlights the increasing consumer demand for non-surgical pain relief alternatives and the rising interest among investors in the medical franchise sector.
Featuring Pro Football Hall of Famer Emmitt Smith as its spokesperson, QC Kinetix specializes in treating musculoskeletal and joint pain caused by injuries, arthritis, and chronic conditions. “Patients come to us after being told they need a steroid injection, physical therapy, or even surgery,” said Crowell. He explained the company’s approach, stating, “We use natural biologics from them,” referring to patients. The treatments involve drawing blood or stem cells, distilling them, and reinjecting them into affected joints.
Crowell emphasized that QC Kinetix seeks to establish the term “natural biologics” as a broad category that extends beyond stem cell therapy to include platelet-rich plasma injections for conditions like meniscus tears.
The Evolution of Regenerative Medicine
Medical therapies using natural biologic tissues have advanced significantly in the past decade. The Mayo Clinic’s Center for Regenerative Medicine, founded in 2011, describes regenerative medicine as going “beyond disease management to search for and discover therapies that support the body in repairing, regenerating, and restoring itself to a state of well-being.” These therapies activate the body’s self-healing mechanisms to improve health outcomes.
Crowell, alongside Tyler Vail and Dr. Richard Schaffer, established the first QC Kinetix clinic in Charleston, South Carolina, in 2017. The trio had previously worked together in a medical clinic before realizing the business potential of regenerative medicine. Vail, a certified physician assistant, now serves as QC Kinetix’s president, while Schaffer holds the position of chief medical officer. The company officially began franchising in 2020.
Operating on a retail medicine model, QC Kinetix clinics do not work with insurance companies, making it a cash-based business.
“The average patient spends $10,000 for a treatment plan,” said Crowell. “It’s not always for everybody, not everybody believes in it, and not everybody can afford it … it’s a unique business model, but it works for us.”
Franchise Success and Expansion
Shane Fay, a franchisee in the Dallas-Fort Worth area, exemplifies the business’s success. Alongside business partner Rich Hicks, he has opened three clinics, with a lease signed for a fourth, and a commitment to developing 17 locations in total. “We are absolutely just crushing it in this market,” said Fay.
Previously a sales leader in startup software companies, Fay was drawn to QC Kinetix’s innovative model and strong reputation in the medical community. As a CrossFit athlete, he has always been passionate about health and wellness.
“And I feel strongly that this path, this restorative, regenerative path, is something most people truly want,” he said, highlighting what he described as “a personal concierge approach to medicine.”
Fay’s team includes a full-time medical director and three physician assistants. Patients appreciate the direct access to a comprehensive medical team, which enhances their treatment experience.
Although Fay did not disclose specific revenue figures, he noted that his Dallas and Fort Worth clinics both broke sales records upon opening. In December 2021, one location “did more in one month than any corporate or franchised QC Kinetix ever.”
Financial Performance and Franchise Growth
According to QC Kinetix’s franchise disclosure document, gross revenue at five corporate clinics ranged from $1.06 million to $1.5 million in 2020. An analysis from January 1 to March 31, 2021, showed 11 company-owned clinics generating an average gross revenue of $296,769.
Company-wide sales rose from $8 million in 2020 (from nine corporate clinics) to $27 million in 2021, largely due to franchise expansion.
Crowell noted that QC Kinetix clinics operate only one day per week. Each designated market area is allocated to a single franchisee, who then determines clinic hours and days based on demand. Medical staff rotate among the locations as needed.
“A busy day for us is to see 10 new patients … At $10,000 a pop, that’s a good day,” said Crowell. As clinics expand their services, they can operate on additional days.
Franchise Model and Business Strategy
Crowell highlighted that “95 percent” of franchisees do not have medical backgrounds. Instead, they employ licensed medical professionals to administer treatments. However, given the regulatory variations surrounding regenerative medicine services, Crowell advises franchisees to familiarize themselves with state laws and seek legal counsel with medical expertise.
Fay echoed this sentiment, mentioning that he frequently receives inquiries from potential franchisees about the business model. “I encourage due diligence and research behind the outcomes and procedures and the efficacy of what we do,” he advised.
Investment and Clinic Specifications
QC Kinetix clinics typically range from 1,700 to 2,500 square feet and are situated in Class A office or medical spaces. The estimated initial investment for a franchise falls between $159,030 and $300,230.
With its rapid growth and strong demand, QC Kinetix continues to gain traction in the regenerative medicine industry, offering franchisees a unique and lucrative opportunity in the healthcare sector.
