Case 3 The Joint Corp

The Joint Corp was incorporated in the year 2010 and is headquartered in Scottsdale, Arizona. The Joint Corp was originally founded in the year 1999 by a doctor of chiropractic. The joint was refounded with the acquisition of the original eight franchised clinics. The company operates through direct ownership, management arrangements, franchising, and regional developers. By March 2022, the company has 700 plus clinics located across 37 states in the United States. The company has also executed 38 letters of intent for 38 future clinic licenses. The company has revolutionized the chiropractic care via a model to make the treatment affordable and accessible. This franchisor and operator of chiropractic clinics uses a private pay, on-insurance, cash-based model. This model facilitates Joint Corp to price services below most competitors’ pricing for similar services and below most insurance co-payment levels. During the year 2021, the franchise system has registered approximately 10.9 million patient visits and generated system-wide sales of $36.1 million. Joint Corp has a community of more than 1700 fully licensed chiropractic doctors. The 5-year (2017–2021) monthly return analysis for Joint Corp company reveals that the total monthly cumulative return for Joint Corp stock was 225%, while that of the Nasdaq Composite index was approximately 70%.