Onward Physical Therapy franchise unit economics
Onward Physical Therapy franchisees run outpatient physical therapy clinics where doctoral-trained therapists treat patients, and the franchisee or an owner must be a licensed professional.
Onward Physical Therapy franchise at a glance
Onward Physical Therapy’s 2026 FDD, issued 16 April 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. An Onward Physical Therapy franchise costs $36,700 to $146,500 to open, and none of that is paid to the franchisor.
- Onward Physical Therapy charges no initial franchise fee and a royalty of 10% of gross sales, capped at $50,000 a calendar year.
- Onward Physical Therapy requires no advertising fund contribution, and its local advertising payment and technology fee are not currently charged.
- Onward Physical Therapy charges a transfer fee of 40%, 35% or 30% of the purchase price, depending on when in the initial term a clinic is sold.
- Onward Physical Therapy had 48 franchised clinics and one affiliate-owned clinic at the end of 2025, up from 30 franchised clinics a year earlier.
- Onward Physical Therapy ties the outer part of an urban territory to patient visits, reaching 2,000 a year from the fourth year of operation.
- The franchisor, Onward Physical Therapy, LLC of Charlotte, North Carolina, has offered franchises since May 2025 and licensed the business from February 2020 to December 2024.
- Onward Physical Therapy clinics are typically 1,000 to 2,000 square feet.
These figures come from Onward Physical Therapy's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Onward Physical Therapy Conversion Package →- Onward Physical Therapy publishes no Item 19. The FDD makes no representation about the past performance of franchised or company-owned clinics. A buyer of an existing clinic may receive that clinic’s actual records.
- The royalty stops at $50,000 a calendar year. The rate is 10% of gross sales, so the cap is reached at $500,000* of gross sales in a year. The franchisor may change the cap on 90 days’ written notice, with the change taking effect the following calendar year.
- Selling a clinic costs 30% to 40% of the purchase price. The transfer fee is 40% inside the first two years of the initial term, 35% between two and five years and 30% after five years. A transfer to an entity the franchisee controls costs the franchisor’s actual costs.
- Urban territories beyond five miles depend on patient visits. Type 2 franchisees keep a five-mile Level 1 territory in all cases. The larger Level 2 and Level 3 areas require at least 1,200 patient visits in the third year and 2,000 in each later year.
- Franchised clinics rose from 30 to 48 in 2025. Item 20 shows 18 openings in 2025 and no terminations, non-renewals or transfers. Across 2023 to 2025 there were 33* openings and one clinic that ceased operations.
Revenue
What the Onward Physical Therapy FDD discloses about revenue
The 2026 Onward Physical Therapy FDD makes no financial performance representation. Item 19 states that the franchisor makes no representations about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets. There is no average, median or profit figure to report.
A buyer of an existing clinic may receive that clinic’s actual records. Item 19 allows this. Exhibit E lists current franchisees, and Item 20 states that no franchisee signed a confidentiality provision restricting what they can say about the system in the last three years.
The royalty is calculated on the amount charged, not the amount a third party pays. Item 6 note 2 states that royalties are calculated on the amount charged for sales where a third party remits less than that amount. Financed sales count when the franchisee or the third party receives payment.
Item 1 states that federal reimbursement does not apply to an Onward clinic. It says the absence of federal reimbursement means the federal Stark and Anti-Kickback rules it describes do not apply, while some states have parallel rules covering all payers. In some states the clinic must be owned through a professional entity wholly owned by licensed physical therapists.
The FDD gives no figure for wages, rent as a share of sales or owner income. Item 7 estimates three months of pre-opening rent at $6,000 to $15,000 and $9,000 to $35,000 of additional funds for the first three months, which exclude royalties and debt service.
Territory
Territory and patient-visit benchmarks
| Year of operation | Level 2 territory | Level 3 territory |
|---|---|---|
| Second year | At least 500 but less than 750 | 750 or more |
| Third year | At least 1,200 | At least 1,200 |
| Each later year, including renewals | At least 2,000 | At least 2,000 |
Source: Onward Physical Therapy 2026 FDD, Item 12. The FDD defines Patient Visits as any patient that pays for physical therapy services in any continuous 12-month period.
A territory typically contains at least 50,000 people. Type 1 franchises, typically in areas of 200,000 people or fewer, receive the city limits where the clinic is located and carry no performance benchmark.
Type 2 franchises receive a tiered territory. The Level 1 territory is a five-mile radius around the clinic and is not subject to benchmarks. Level 2, and in some cases Level 3, covers a larger area and stays exclusive while the franchisee meets the benchmarks in the table.
Missing a benchmark reduces the territory, and the five-mile Level 1 territory remains exclusive. A Level 3 territory reverts to Level 2, or to Level 1 if the Level 2 benchmark is also missed. 2,000 patient visits a year is about 38.5* a week.
Clinics by state
Franchised clinics by state, 2025
| State | Start of 2025 | Opened in 2025 | End of 2025 |
|---|---|---|---|
| Alabama | 1 | 0 | 1 |
| Arizona | 2 | 0 | 2 |
| Colorado | 3 | 2 | 5 |
| Delaware | 1 | 0 | 1 |
| Florida | 1 | 1 | 2 |
| Georgia | 1 | 2 | 3 |
| Idaho | 1 | 0 | 1 |
| Illinois | 1 | 0 | 1 |
| Kansas | 1 | 0 | 1 |
| Maryland | 1 | 0 | 1 |
| Michigan | 3 | 2 | 5 |
| Minnesota | 0 | 3 | 3 |
| Nevada | 1 | 0 | 1 |
| New Jersey | 1 | 0 | 1 |
| North Carolina | 1 | 0 | 1 |
| Ohio | 1 | 0 | 1 |
| Pennsylvania | 1 | 0 | 1 |
| South Carolina | 1 | 3 | 4 |
| Tennessee | 2 | 4 | 6 |
| Virginia | 2 | 0 | 2 |
| Washington | 2 | 0 | 2 |
| Wisconsin | 2 | 1 | 3 |
| Total | 30 | 18 | 48 |
Source: Onward Physical Therapy 2026 FDD, Item 20 Table 3. One Virginia clinic and two Washington clinics still operate under their original license agreements.
Item 19 gives no figures for individual clinics, so this section shows where the clinics are. At the end of 2025 the 48 franchised clinics were spread across 22* states. Tennessee had the most, with 6, followed by Colorado and Michigan with 5 each.
The affiliate clinic is in Charlotte, North Carolina. It is owned and operated by Onward Charlotte LLC and has operated since June 2019. Item 1 states that the franchisor itself has never conducted a business of the type it franchises.
Item 20 projects 14 new franchised clinics in 2026. Table 5 lists 6 franchise agreements signed for clinics not yet open at December 31, 2025, and no projected company-owned openings.
Brand charges
Brand charges
| Charge | Amount |
|---|---|
| Initial franchise fee | $0 |
| Development fee, area development agreement | $0 |
| Royalty | 10% of gross sales, capped at $50,000 a calendar year |
| Advertising fund | None required |
| Local advertising payment | Not currently charged |
| Technology fee | Not currently charged; no more than $200 a month if introduced |
| Late payment | $100 per occurrence plus interest |
| Failure to submit a required report | $100 per occurrence and $100 a week |
| Renewal fee | The franchisor’s actual costs |
| Transfer fee | 40%, 35% or 30% of the purchase price, by year of sale |
| Termination fee | $25,000, if the agreement ends in the first 3 years by the franchisee’s choice or for uncured default |
| Royalty as a share of gross sales | 10% up to $500,000* of gross sales a calendar year; no further royalty above that |
Source: Onward Physical Therapy 2026 FDD, Items 5 and 6. With no Item 19 average, Averan cannot express total fees as a share of a typical clinic’s sales.
No initial franchise fee or development fee was collected in 2025. Item 5 states that the franchisor collected neither fee in the fiscal year ended December 31, 2025.
The royalty and fixed fees may rise with the Consumer Price Index. Item 6 note 3 allows increases once the index is more than 5% above its level at signing or at the last adjustment, by up to 20% a year calculated cumulatively over the term.
The fees in Item 6 apply to each clinic. An area developer pays the royalty, and has a separate $50,000 cap, for each Onward Physical Therapy business. Area developers must open at least two clinics.
Selling a clinic carries a transfer fee of 30% to 40% of the purchase price. A $1,000 non-refundable deposit is due with the transfer application, and the balance is due when the transfer is approved. If the franchisee fails to buy required insurance, the franchisor may buy it and charge the premium plus 20%.
Cost to open
Cost to open
| Expense | Low | High |
|---|---|---|
| Initial franchise fee | $0 | $0 |
| Equipment | $10,000 | $25,000 |
| Furniture, fixtures, equipment and supplies | $1,000 | $10,000 |
| Computer, point of sale, office supplies and equipment | $2,500 | $5,000 |
| Three months’ lease payments | $6,000 | $15,000 |
| Leasehold improvements | $3,000 | $30,000 |
| Utility and security deposits | $2,000 | $8,000 |
| Signage | $500 | $5,000 |
| Licenses and permits | $100 | $500 |
| Insurance | $100 | $1,000 |
| Professional fees | $500 | $2,000 |
| Training expenses | $2,000 | $10,000 |
| Additional funds, three months | $9,000 | $35,000 |
| Total | $36,700 | $146,500 |
Source: Onward Physical Therapy 2026 FDD, Item 7. Both columns add to the printed totals.
None of the estimated investment is paid to the franchisor. The cover page states $0 is paid to the franchisor or its affiliates for a standard clinic, a conversion clinic or an area development agreement.
The highest line in the high estimate is additional funds of $35,000. These cover the first three months, including lease payments, payroll and the technology fee, and exclude royalties and debt service. The leasehold estimate excludes any landlord construction allowance.
An existing independent business converting to the brand has a separate estimate of $15,500 to $90,500. That estimate assumes the owner already has premises, deposits and licenses in place.
An area developer opening two clinics has an estimate of $73,400 to $293,000. The FDD gives $183,500 to $732,500 for five clinics. Opening typically takes three to twelve months from signing, and the clinic must open within 12 months.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End |
|---|---|---|---|---|---|---|---|
| 2023 | 15 | 5 | 0 | 0 | 0 | 0 | 21 |
| 2024 | 21 | 10 | 0 | 0 | 0 | 1 | 30 |
| 2025 | 30 | 18 | 0 | 0 | 0 | 0 | 48 |
Source: Onward Physical Therapy 2026 FDD, Item 20 Tables 1 and 3. One affiliate-owned clinic operated in each year. Item 20 Table 2 shows no transfers in 2023 to 2025.
Franchised clinics rose from 30 to 48 in 2025, a 60.0%* increase. Across the three years the total rows show 33* openings, one clinic in Tennessee that ceased operations in 2024 and no terminations, non-renewals or reacquisitions.
The 2023 total row does not add up. It shows 15 clinics at the start of 2023, 5 opened and no exits, against 21 at year end. The state rows for 2023 add to 16* at the start of the year, which matches the year-end count.
Most clinics began as licensees. The franchisor offered licenses from February 2020 to December 2024 and franchises from May 2025. One clinic in Virginia and two in Washington still operate under their original license agreements, whose terms may differ from the franchise agreement described here.
Item 3 lists three state actions over unregistered franchise sales. The franchisor reported itself in July 2025 to Illinois, Maryland and Washington, and accepted an assurance or consent order in each, including civil penalties or costs.
Questions we get asked
Questions owners ask
How much does it cost to open an Onward Physical Therapy franchise?
The 2026 FDD estimates $36,700 to $146,500 for a standard clinic, with nothing paid to the franchisor. An existing independent business converting to the brand has an estimate of $15,500 to $90,500.
What fees does Onward Physical Therapy charge?
There is no initial franchise fee. The royalty is 10% of gross sales, capped at $50,000 a calendar year. There is no advertising fund, and the local advertising payment and technology fee are not currently charged. Selling the clinic carries a transfer fee of 30% to 40% of the purchase price.
How much does an Onward Physical Therapy franchise make?
The 2026 FDD does not say. Onward Physical Therapy makes no financial performance representation in Item 19, so there is no published average revenue, median revenue or profit figure. A buyer of an existing clinic may receive that clinic’s actual records.
How many Onward Physical Therapy locations are there?
Item 20 counts 48 franchised clinics and one affiliate-owned clinic at December 31, 2025, across 22 states for the franchised clinics. There were 30 franchised clinics a year earlier. Six franchise agreements were signed for clinics not yet open.
How big is an Onward Physical Therapy territory?
A territory typically contains at least 50,000 people. Type 1 franchises in smaller markets receive the city limits. Type 2 franchises receive a five-mile radius that stays exclusive, plus a larger area that depends on reaching patient-visit benchmarks, including 2,000 a year from the fourth year.
How long is an Onward Physical Therapy franchise term?
Ten years, with successor terms of five years each if the franchisee is in good standing and meets the other requirements. The renewal fee is the franchisor’s actual costs.
Questions worth putting to Onward Physical Therapy
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Onward Physical Therapy see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Onward Physical Therapy locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check 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. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for an Onward Physical Therapy owner
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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?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Onward Physical Therapy, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Onward Physical Therapy is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Onward Physical Therapy, LLC, 2026 Franchise Disclosure Document, issued 16 April 2026.