Chiropractic + Naturopathic Doctor

Chiropractic and Franchised Health Clinics

By Amit Sharda   

Features Business Management

Within the next couple of years, chiropractic franchising in Canada is
going to become very common, just as we have seen happen in the United

Within the next couple of years, chiropractic franchising in Canada is going to become very common, just as we have seen happen in the United States. To some, it may seem a bit odd to apply the concept of franchising to health care, but to some, it makes eminent sense. There are a vast number of benefits and reasons people may choose to join a franchise, regardless of the industry. Primarily, franchising has statistically proven to allow for greater success in business, and this is the desire of any business owner. In fact, studies show that businesses that are part of a franchise are four times more likely to succeed than are independent units. That is a remarkable statistic!

Franchising trends in Canada have experienced solid growth trends over the past few decades. Here are some very interesting facts:

  • Canada is one of the franchise capitals of the world, second only to the U.S.
  • A Canadian franchise opens every two hours 365 days a year.
  • Franchising represents more than $100 billion in sales annually and this amount continues to grow.
  • Franchising employs more than 1.5 million people in Canada.
  • Approximately 500 of the largest U.S. franchisors have introduced their franchise systems to Canada.
  • Franchised businesses are four times more likely to succeed than non-franchised businesses.
  • One-third of all chiropractors fail in their own practice.

The reasoning given by people who are averse to joining a franchise is that they are deterred by the initial cost to join, as well as the ongoing royalties required to continue. They do not see the whole concept of franchising and and do not realize its immense benefits. Franchising is growing across the globe because this business model has permitted an end result of greater profitability to the individual business owner. Some general benefits of being part of a franchise include: 

Lower Risks – Most business experts agree that a low-cost franchise operation has a lower risk of failure than an independent business. The statistics on this vary depending on the definition of failure. Whatever statistics are used, they consistently suggest that a low-cost franchise is more likely to succeed than is an independent business.

Group purchasing power –  It is often possible to obtain goods and supplies at a lower cost through the franchisor. The franchise cost can result from the group purchasing power of all franchises. To protect this benefit, most franchise cost agreements restrict the franchisee from purchasing goods and supplies through other sources.

Established product or service – A franchisor offers a product or service that has sold successfully. An independent business is based on both an untried idea and operation. Three factors will help you predict the potential success of a franchise. The first is the number of franchises that are in operation. The second is how long the franchisor and its franchisees have been in operation. A third factor is the number of franchises that have failed, including those bought back by the franchisor.

Experience of franchisor – The experience of the franchisor’s management team increases the potential for success. This experience is often conveyed through formal instruction and on-the-job training.

Name recognition – Established franchisors can offer national or regional name recognition. This may not be true with a new franchisor. However, a benefit of starting with a new franchisor is the potential to grow as its business and name recognition grow.

Efficiency of operation – Franchisors discover operating and management efficiencies that benefit new franchisees. Operational standards set in place by the franchisor also control quality and uniformity among franchisees.

Management assistance – A franchisor provides management assistance to a franchisee. This includes the areas of accounting procedures, personnel management and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchisor helps a franchisee overcome this lack of experience.

Start-up assistance – The most difficult aspect of a new business is its startup. Few managers know how to set up a new business. However, a franchisor has a great deal of experience accumulated from helping its franchisees with startup. This experience will help reduce mistakes that are costly in both money and time.

Marketing assistance – A franchisor typically offers several marketing advantages. The franchisor can prepare and pay for the development of professional advertising campaigns. Regional or national marketing done by the franchisor benefits all franchisees. In addition, the franchisor can provide advice about how to develop effective marketing programs for a local area. This benefit usually has a cost because many franchisors require franchisees to contribute a percentage of their gross income to a co-operative marketing fund.

Assistance in financing – It is possible to receive assistance in financing a new franchise through the franchisor. A franchisor will often make arrangements with a lending institution to lend money to a franchisee. Lending institutions find that such arrangements can be quite profitable and relatively safe because of the high success rate of franchise operations. The franchisee must still accept personal responsibility for the loan, but the franchisor’s involvement usually increases the likelihood that a loan will be approved.

Proven system of operation – An attractive feature of most franchises is that they have a proven system of operation. This system has been developed and refined by the franchisor. A franchisor with many franchisees will typically have a highly refined system based on the entire experience of all these operations.

In the U.S., a growing number of chiropractic franchises are currently in existence and meeting with considerable success. New franchises are now also emerging in Canada – in these franchises, chiropractic is only the tip of the iceberg of that which is offered. The franchises are providing the systems for doctors and business owners to introduce multiple pillars of income that can be easily implemented into their current practice. Ranging from rehabilitation to cosmetic procedures, their offerings reflect contemporary consumer-driven service as well as multidisciplinary Canadian-based health care.

When you are looking for a product or service do you prefer to go to a well-known, recognizable business or to a small, unknown “ma and pa” shop? The vast majority of consumers prefer to go to a well-known and trustworthy name. They are comfortable with the familiarity of the name, and recognize that they will receive a specific level of service. Does it not make sense to support this business model in the profession of chiropractic?

Dr.  Amit Sharda is a founder and co-owner of HealthMedica Canada, one of Canada’s fastest growing brands of health-care clinics.  To learn more about HealthMedica, visit or call 1-855-6MEDICA.

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