In 2020, QC Kinetix had no franchise locations. By the close of 2021, the company’s franchise network had exploded to 59 clinics, in addition to 11 owned by the corporation. As CEO Justin Crowell notes, this rapid expansion underscores the growing consumer demand for non-surgical pain relief options and the keen interest from franchise investors and operators in the healthcare field.
QC Kinetix, endorsed by Pro Football Hall of Famer Emmitt Smith, offers therapies for musculoskeletal and joint pain caused by injuries, arthritis, or other chronic issues. Crowell states “come to us after being told they need a steroid injection, physical therapy or even surgery”
“We use natural biologics from them,” explained Crowell, detailing their unique treatment methodology. “We are taking either blood or stem cells from the patient and distilling the cells … and injecting it into the joint.”
QC Kinetix aims to popularize the term “natural biologics,” as Crowell mentioned, to encompass a broader spectrum of treatments beyond stem cell therapy, such as platelet-rich plasma injections for meniscus injuries.
The medical use of natural biological tissues has seen significant advancements over the past decade. The Mayo Clinic’s Center for Regenerative Medicine, founded in 2011, states, “Regenerative medicine goes 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. … regenerative medicine therapies prompt the body to enact a self-healing response.”
Crowell, alongside Tyler Vail and Dr. Richard Schaffer, launched the inaugural QC Kinetix clinic in Charleston, South Carolina, in 2017. The trio, who previously collaborated at another medical clinic, saw the commercial potential in regenerative medicine and decided to establish their venture. Vail serves as the president of QC Kinetix, while Schaffer holds the position of chief medical officer. They began offering franchises in 2020.
QC Kinetix operates on a retail medicine model that exclusively accepts direct payments, eschewing traditional insurance partnerships.
Crowell noted, “The average patients 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.”
Shane Fay and his business partner Rich Hicks have found success with QC Kinetix, boasting three operational clinics in the Dallas-Fort Worth area and a fourth soon to open. They intend to open 17 locations in all; Fay calls the project “a dream come true.”
“We are absolutely just crushing it in this market,” Fay remarked. A CrossFit enthusiast with a deep passion for health and wellness, he previously led sales teams at startup software companies before being drawn to QC Kinetix’s innovative approach and strong reputation in the healthcare sector.
“And I feel strongly that this path, this restorative, regenerative path, is something most people truly want,” he added, along with what he called a “a personal concierge approach to medicine.”
His team includes a full-time medical director and three physician assistants, providing patients “are blown away” with exceptional access to a comprehensive medical team.
While Fay did not share specific sales figures, he noted record-setting sales at his Fort Worth and Dallas clinics upon opening. In December 2021,“ did more in one month than any corporate or franchised QC Kinetix ever”.
According to the company’s franchise disclosure document, gross revenue for five corporate clinics ranged from $1.06 million to $1.5 million throughout 2020, with an average of $296,769 reported from 11 company-owned clinics in the first quarter of 2021.
Systemwide, QC Kinetix saw sales climb from $8 million in 2020 from nine corporate clinics to $27 million in 2021, buoyed by the addition of franchise locations, as Crowell reported.
Crowell highlighted that QC Kinetix clinics operate just one day per week. He elaborated that designated market areas are assigned to a single franchisee, who then decides the operational days for multiple units based on location and demand. The medical staff, responsible for setting treatment schedules, rotates among clinics to meet the needs of different markets.
“A busy day for us is to see 10 new patients … At $10,000 a pop, that’s a good day,” Crowell remarked, adding that clinics might open more frequently as services expand.
Crowell noted that most franchisees, “95 percent”, come from non-medical backgrounds. These owners recruit licensed medical professionals to provide patient care. He emphasized that the business model, coupled with diverse state laws governing non-surgical regenerative treatments, necessitates that franchisees educate themselves and seek legal counsel with expertise in medical regulations.
Echoing this sentiment, Fay mentioned that he regularly receives inquiries from potential franchisees eager to understand the business.” “I encourage due diligence and research behind the outcomes and procedures and the efficacy of what we do,” he stated.
QC Kinetix clinics are typically sized between 1,700 and 2,500 square feet, situated in Class A office or medical spaces, with an initial financial investment ranging from $159,030 to $300,230.
