FYZICAL's Funding Support
Understand the Investment Required and How to Secure Funding
The Investment Required to Start a FYZICAL Clinic
Investing in a physical therapy clinic through FYZICAL is a sound investment that can provide a substantial return, both personally and professionally. But what does it take financially to open your own FYZICAL?
The Initial Investment
The total projected initial investment to open a FYZICAL clinic is between $195,750- $509,000
Additional Expenses: This includes travel, training, security systems, signage, branding, design, computer and EMR systems, grand opening advertising, business licenses, utility deposits, 12 months of insurance, prepaid expenses, and other essential miscellaneous investments.
FYZICAL Franchise Investment Breakdown
Initial Investment
Joining the FYZICAL Franchise requires a one-time investment, ranging from $195k to $509k, which grants access to FYZICAL's expertise, support, resources, technology, vendor discounts, and brand power. This investment includes a $49k franchise fee for one location and secures a protected territory, ensuring no competition from other FYZICAL clinics. It streamlines startup operations, often reducing costs by saving time and resources in other phases. Investment amounts may vary based on the number of locations and market size.
Equipment
A detailed list of smaller investments for your practice is available in FYZICAL's Franchise Disclosure Document (FDD) or from your FYZICAL Advisor. These include training, travel, security systems, signage, branding, design, computer and EMR systems, grand opening advertising, utility deposits, licenses, insurance, prepaid expenses, and other essentials. Every detail is included in your total investment, ensuring a smooth and transparent start-up process with FYZICAL.
Location Leasing
FYZICAL helps you find, select, and negotiate your best real estate opportunity, whether you purchase or lease. Most members choose to lease. Be prepared to invest approximately three months' rent, as many landlords typically require the first and last month's rent and a security deposit. Lease amounts vary significantly, but a range of $4,000 - $15,000 accommodates most centers.
Leasehold Improvements
Leasehold improvements and build-out costs vary widely based upon several factors, including the size and condition of the premises, whether or not there are any existing leasehold improvements, and whether the landlord will contribute to the cost of the improvements. FYZICAL will advise you on negotiation; we have a track record for successfully negotiating landlord contributions to your build-out costs. Your location costs are likely to be in the range of $39,000 - $187,000.
Operating Expenses
This category includes investments required to operate your franchise during the first nine months of your business, such as employee payroll expenses and any additional costs that may be due to the landlord or suppliers. Non-clinical owners should set aside $75,000-$150,000, while physical therapists working in their business can set aside a lesser amount of working capital.
Everything Else
A detailed list of smaller investments for your practice is available in FYZICAL's Franchise Disclosure Document (FDD) or from your FYZICAL Advisor. These include training, travel, security systems, signage, branding, design, computer and EMR systems, grand opening advertising, utility deposits, licenses, insurance, prepaid expenses, and other essentials. Every detail is included in your total investment, ensuring a smooth and transparent start-up process with FYZICAL.
To receive a copy of the FYZICAL FDD, start by submitting your territory check here.
Do you want to open your own PT practice but are unsure how to fund it?
One of the most frequently asked questions from those looking to start their own PT practice is, "How do I fund my new practice?"
To answer your funding questions, we've put together a funding guide that helps PT practice owners navigate the available funding options.
Top Methods of Funding Your Practice
Cash or Marketable Securities
For well-qualified candidates, using savings or selling stocks can be a good option. This works best if you want to avoid debt, have enough cash available, and prefer to invest in your own business instead of the stock market.
Commercial Bank Loan
A traditional bank loan provides a lump sum based on your business plan and credit history. Strong finances and a high credit score lead to better terms. However, therapy practices often prefer SBA loans due to their more favorable terms and accessibility.
SBA Loan – The #1 Funding Choice for Therapy Entrepreneurs
The U.S. Small Business Administration (SBA) partners with lenders to offer loans with lower down payments and flexible requirements. SBA guarantees make these loans ideal for startups, with payments starting only after funds are used, providing extra emergency funding. FYZICAL works with top lenders to guide and tailor the process to your needs, but understanding the specific usage rules is essential.
401k Rollover for Business Startups
You can use 401k funds from a previous employer to finance your business through Rollovers for Business Startups (ROBS), which allows you to access retirement savings without early withdrawal fees or tax penalties. Even if rolled into your current employer’s 401k, funds from a prior employer remain eligible. Rolling over a portion can also strengthen your finances and improve SBA loan eligibility.
HELOC - Home Equity Line of Credit
A home equity line of credit (HELOC) lets you borrow against your home’s equity as needed and repay at a variable interest rate. Funds replenish as you pay off the balance, making it a renewable resource. Those with high equity, good credit, and a low debt-to-income ratio can secure better rates, making HELOC a good option if other lending options are unavailable.
Partners, Friends & Family
If traditional funding isn’t an option, consider partnering or borrowing from friends and family. You don’t need to finance the entire project, just enough to qualify for an SBA loan or other funding. If you pursue this method, be sure to put the terms of your agreement into a contract – including any expectations set by the lender and ensure both parties agree to the terms.
Ensuring You'll Be Approved For SBA Funding
The SBA is the most common funding method for business owners seeking a loan.
Initial Capital Injection
This is the money you’ll contribute to the project from your own savings, not borrowed funds. SBA loans usually require you to put in a percentage of the loan amount, averaging about $225k.
Credit Score
Your credit score shows how reliably you repay debts. A higher score makes you appear more trustworthy to lenders. Generally, a score of 650 or higher is needed to qualify for an SBA loan. If your score is lower, you’ll need to stand out in other areas to improve your chances of approval.
Collateral
Collateral is any asset that could be used to guarantee your financial commitment to the loan. This may include a private residence, additional real estate assets, an additional business, vehicles, or any other valuable assets. If you default on your loan, your lender may take possession of or sell your assets to recuperate the funds they loaned.
Ability to Support Your Future Personal Expenses
This is often called your “burn rate” – the amount needed to cover your household expenses, such as groceries, mortgage, car payments, and other debts. Lenders will want to see that you can manage these costs through savings or future income while waiting for your business to become profitable. Strong spousal income or earnings from other businesses or jobs can help meet this requirement. If you’re the sole breadwinner leaving your current job, you’ll likely need to show a higher cash reserve to cover these expenses.
Your path to success and business ownership in physical therapy!
With FYZICAL's support, you can operate a successful physical therapy franchise clinic within your community. If you’re ready to learn more about the opportunity, check your territory to get started!
Ready to franchise with FYZICAL?
Let us know where you'd like to open a FYZICAL clinic, and we'll verify if that area is available for development.
