Regenerative Medicine Franchise QC Kinetix Gains Momentum

In 2020, QC Kinetix had no franchise locations operating. Yet, by the close of 2021, franchisees under the regenerative medicine brand had launched 59 clinics, in addition to 11 corporate units.

CEO Justin Crowell noted that this rapid expansion highlights consumer demand for non-surgical pain relief options and shows significant interest from franchise investors and operators in the medical field.

QC Kinetix, featuring Pro Football Hall of Famer Emmitt Smith as its spokesperson, offers a variety of treatments for different kinds of musculoskeletal and joint pain, whether due to injuries, arthritis, or other chronic conditions, benefiting numerous patients. “come to us after being told they need a steroid injection, physical therapy or even surgery,” said Crowell.

“We use natural biologics from them,” the patients, Crowell mentioned while detailing the treatment approach. “We are taking either blood or stem cells from the patient and distilling the cells … and injecting it into the joint.”

Crowell later expressed that QC Kinetix aims to popularize the term “natural biologics,” given that their treatment options extend beyond stem cell therapy to encompass other methods like platelet-rich plasma injections for meniscus tears.

Over the past ten years, the application of natural biological tissues in medical treatments has progressed significantly. This is evidenced by the establishment of the Mayo Clinic’s Center for Regenerative Medicine in 2011. “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. They ventured out independently after collaborating at a medical clinic where they recognized the commercial potential of regenerative medicine. Vail, who is a certified physician assistant, serves as the president of QC Kinetix, while Schaffer holds the position of chief medical officer. The trio began offering franchises in 2020.

QC Kinetix operates on a retail medicine model, functioning as a cash-only business without involving insurance companies in its clinic operations.

“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.”

The model is proving successful for Shane Fay as well. Together with his business partner Rich Hicks, they have opened three QC Kinetix clinics in the Dallas-Fort Worth area and have secured a lease for a fourth. They have plans to establish a total of 17 locations. Fay has described the venture as “a dream come true.”

“We are absolutely just crushing it in this market,” he added. An avid CrossFit enthusiast with a longstanding interest in health and wellness, Fay was at the helm of sales teams for startup software firms before encountering QC Kinetix. He noted his admiration for the brand’s pioneering business model and its esteemed standing within the medical field.

“And I feel strongly that this path, this restorative, regenerative path, is something most people truly want,”he continued, adding what he described as a “a personal concierge approach to medicine.”

His team comprises a full-time medical director and three physician assistants, and patients are “are blown away” by their comprehensive access to an entire team of medical professionals.

Fay didn’t disclose exact sales numbers, but he mentioned that his Fort Worth and Dallas locations both achieved record sales upon opening and in December 2021, one of the clinics “did more in one month than any corporate or franchised QC Kinetix ever.”

According to Item 19 in the company’s franchise disclosure document, gross revenue varied from $1.06 million to $1.5 million at five corporate clinics during the year from January 1 to December 31, 2020. Furthermore, an analysis of gross revenue from January 1 to March 31, 2021, indicates that 11 company-owned clinics averaged $296,769.

According to Crowell, QC Kinetix’s systemwide sales reached $8 million in 2020 across nine corporate clinics and surged to $27 million in 2021 following the inclusion of franchise locations.

Crowell highlighted that QC Kinetix clinics operate just one day a week. Each designated market area is allocated to a single franchisee who, as they expand and open multiple units, decides on different operating days for each location. He also noted that the medical staff, who create the treatment schedules, rotate among the various clinics based on the needs of the market.

“A busy day for us is to see 10 new patients … At $10,000 a pop, that’s a good day,” Crowell stated, adding that as a location expands its offerings, there could be opportunities to open on more days.

Crowell mentioned that the vast majority of franchisees, “95 percent,” lack medical backgrounds. Instead, they employ licensed medical professionals to manage patient care. Due to this model and the diverse state laws and regulations governing non-surgical regenerative medicine services, Crowell emphasized that franchisees must educate themselves and engage attorneys with medical expertise.

Fay concurred and mentioned that he frequently receives inquiries from potential franchisees eager to understand more about the business concept. “I encourage due diligence and research behind the outcomes and procedures and the efficacy of what we do,” he stated.

QC Kinetix clinics usually occupy spaces ranging from 1,700 to 2,500 square feet within Class A office or medical buildings. The initial investment required varies from $159,030 to $300,230.