FYZICAL business model breakdown
A FYZICAL area representative buys a population-sized territory at 30 cents a resident, minimum $300,000, and sells and supports physical therapy clinic franchises inside it. The return is 65% of the initial fees those clinics pay and 35% of their ongoing royalties. The only required ongoing spend is $1,000 a month of lead generation.
- Primary source
- FYZICAL, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure
- Population
- 0 of 66 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
This is the deal above the clinic. An area representative buys a territory at 30 cents a resident with a $300,000 minimum, so the smallest territory holds a million people, then recruits and supports physical therapy franchisees, keeping 65% of their initial fees and 35% of their royalties.
- Thirty cents a resident, with a million-resident minimum. $300,000 minimum *, and a $1,000,000 fee buys about 3.3 million people *.
- Sixty-five percent of the initial fee comes back, but only 35% of the royalty. So the money arrives heavily at the sale and thinly thereafter, the reverse of most master arrangements.
- Clinics the brand itself opens in your territory pay you 2.1% of their revenue. $21,000 on a clinic billing $1,000,000 *, compensation for a reserved right.
- The fee is 98% of the whole investment. Everything else costs $6,050 to $19,500 *, premises, build and equipment are all absent.
- The only required ongoing spend is $1,000 a month of lead generation. $12,000 a year *, with zero royalty, zero marketing fund and zero technology fee payable upward.
Thirty cents per person
The price is a headcount.
| Fee | Residents * | Total investment |
|---|---|---|
| $300,000, the minimum | 1,000,000 | $306,050 |
| $600,000 | 2,000,000 | n/a |
| $1,000,000 | 3,333,333 | $1,019,500 |
| Rate | 30 cents for each individual residing in the territory | |
The 30-cent rate, the $300,000 minimum and the investment range are as the brand reported it and the resident counts divide the fee by the rate, marked *.
Minimum and maximum territory sizes are both absent. So what you buy is settled entirely by the map drawn in the agreement, and relocating it is prohibited.
An existing FYZICAL franchisee may finance half the fee. Up to 50% for those meeting the approval criteria, the only concession available on a $300,000 minimum.
The fee is due as a lump sum at signing and is fully non-refundable. Under any circumstances, so the development plan has to be credible before the check clears.
Everything beyond the fee costs $6,050 to $19,500. *, training travel, a computer, insurance, professional fees and three months of funds.
Three months of additional funds is $3,000 to $5,000. Assuming zero salary for the owner, which makes this a purchase funded by future commissions.
Top performers
What separates the top FYZICAL performers
FYZICAL publishes no revenue figures, so neither the average nor the spread between locations is disclosed.
Decided before you open
- Territory, and how much of it is real.This model sells from a territory rather than a building. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $306,050 to $1,019,500, a 3.3× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- What you can change after opening.This filing prices none of the operating lines. Across the Health & Wellness brands in this library that do disclose them, the largest is wages at a median 39.8% of sales *. Model that line first, then ask owners at both ends of the system what it actually runs at, because a few points on the largest line outweighs everything else you can change.
Context you underwrite around
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations, no median, no performance bands, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
- What the rest of the category shows.Across the 38 Health & Wellness brands in this library that do publish bands, the top group sells 3.1× the bottom at the typical brand, and a median 43% of locations reach their own average *. Assume a spread of that order here until the franchisor shows you otherwise.
Top performers
How far apart the locations are
This filing does not split its locations into performance bands, so the gap between the highest and lowest Fyzical location is not disclosed. What it does publish is on the Model and Finance tabs.
What comes back
Most of the fee, a third of the annuity. (Items 5 and 6)
| Source | Share |
|---|---|
| Initial fee on each new clinic in the territory | 65% |
| Monthly royalties from clinics in the territory | 35% |
| Clinics the brand or an affiliate opens in the territory | 65% of the then-current initial fee, plus 2.1% of monthly sales |
| Existing franchisees in the territory | Excluded from both shares |
| Royalty payable upward | Zero |
Every share is as the brand reported it, with clinics already franchised before the territory was granted excluded from the representative's compensation.
The weighting favors selling over supporting. 65% at the sale against 35% of the ongoing royalty, so the model rewards recruitment more than it rewards clinic survival.
Royalties from the representative’s own clinics count too. A representative who also owns FYZICAL centers receives 35% of the royalty those centers pay, effectively a discount on their own operation.
A brand-owned clinic in the territory pays 2.1% of sales. $21,000 on a clinic billing $1,000,000 *, so the reserved right to compete has a price.
Clinics that were already franchised are carved out entirely. Of both the fee share and the royalty share, so an established market is worth less than its population suggests.
Zero royalty, marketing fund or technology fee flows upward. The representative's only recurring outlay goes to third parties.
What it costs to run
A laptop, a database and a marketing budget.
| Item | Low | High |
|---|---|---|
| Initial area representative fee | $300,000 | $1,000,000 |
| Training travel and living | $1,750 | $5,000 |
| Computer system | $0 | $3,000 |
| Professional fees | $500 | $5,000 |
| Additional funds, three months | $3,000 | $5,000 |
| Total | $306,050 | $1,019,500 |
| Required advertising a year * | $12,000 | |
Every figure is as the brand reported it and the annual advertising row multiplies the $1,000 monthly minimum by twelve, marked *.
The $1,000 monthly spend buys franchisee leads. It is lead generation aimed at prospective clinic owners, and the brand may raise it on 30 days’ notice.
Errors and omissions cover of $1,000,000 is required. From an insurer rated A or better, at an estimated $300 to $500 a year.
The computer system runs on standard software and the brand’s own customer system. At up to $1,000 a year paid to third parties, and zero technology fee is payable to the brand.
A transfer costs $20,000. 6.7% of the minimum fee *, and refresher training runs up to $1,500 a person.
The estimates come from the brand’s own experience selling unit franchises. With zero area representative franchise ever operated by the brand itself.
Territory and the system
Sixty-six representatives across thirty-six states.
| Year | Start | Opened | Terminated | End |
|---|---|---|---|---|
| 2023 | 37 | 15 | 0 | 52 |
| 2024 | 52 | 7 | 0 | 59 |
| 2025 | 59 | 8 | 1 | 66 |
| Three years | n/a | 30 | 1 | n/a |
Every figure is as the brand reported it for area representative franchises instead of for clinics, with zero company-owned representative businesses in any year.
Texas holds eight representatives and Florida seven. Of 66 across 36 states, so the map is well covered and thinning out.
Thirty representatives arrived in three years against one departure. *, and that departure followed the brand’s affiliate acquiring the representative’s seven clinics.
Territory rights depend on a development schedule. A minimum number of unit franchises solicited and supported, varying by territory, and falling short may end the arrangement.
The brand keeps the right to open clinics and sell units in your territory. Subject to the compensation above, alongside internet and alternative channels.
Relocating the territory is prohibited. And rights to expand it or acquire more are absent, so the map bought at signing is the map for the term.
Questions we get asked
Questions an owner asks.
What is this business?
Recruiting, screening and selling FYZICAL clinic franchises inside a population-sized territory, and supporting those franchisees through site selection, opening and early operations. It has zero management responsibility for the clinics themselves.
What does the territory cost?
30 cents for each individual residing in it, with a $300,000 minimum. On our reading that means the smallest territory holds a million people, and a $1,000,000 fee buys about 3.3 million.
What does the representative earn?
A one-time commission of 65% of the initial franchise fee each new clinic in the territory pays. 35% of the monthly royalties those clinics pay thereafter, including clinics the representative owns. Clinics already franchised before the territory was granted are excluded from both.
What if the brand opens its own clinic there?
It pays the representative 65% of the then-current initial franchise fee plus 2.1% of that clinic's sales each month. On a clinic billing $1,000,000 a year that is $21,000 on our reading.
What does the representative pay ongoing?
At least $1,000 a month on lead generation advertising aimed at prospective franchisees, which is $12,000 a year. There is zero royalty, zero marketing fund contribution and zero technology fee payable to the brand.
What does it cost to start?
$306,050 to $1,019,500, of which the territory fee is 98% on our reading. Everything else is $6,050 to $19,500, training travel, a computer, insurance, professional fees and three months of funds. An existing FYZICAL franchisee may finance up to half the fee.
What keeps the territory?
A development schedule setting a minimum number of unit franchises solicited and supported, varying by territory and by the representative's capabilities. Falling short may end the area representative franchise, and relocating the territory is prohibited.
Which two numbers should run monthly?
Unit franchise agreements signed against the development schedule, because those keep the territory and produce the 65% commission. Clinics open and paying royalties. Because the 35% share is the annuity that outlasts the sale.
- No revenue figures. The filing makes no financial performance representation, so there is no disclosed sales number for any location.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
- No range. The filing does not show the highest and lowest locations, so the spread inside the system is unknown.
- No attainment figure. The filing does not say how many locations reached the average it publishes.
- No ramp. The filing does not show how a new location builds up, so the first-year curve has to be assumed.
Questions worth putting to FYZICAL
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What did the highest and lowest locations sell last year, and what explains the gap?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- What do the fees add up to as a share of sales at the average location, once minimums and technology charges are counted?
- How many FYZICAL locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →How many clinics are open and paying?
A structured review of your unit economics, cash forecast. Reporting, built around 30 cents a resident, 65% of the initial fee, 35% of the royalty. A development schedule that keeps the map yours.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
FYZICAL reads against the rest of the clinics & medical services group: AFC Urgent Care · Medi-Weightloss · QC Kinetix. The clinics & medical services guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
- How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
- At what point do spreadsheets stop coping?What changes at around ten units, and why lenders care.
- I run several locations. Which ones actually make money?Location-level contribution, and what it takes to see it.