About Egoscue Franchise
Egoscue is a health and wellness franchise that offers a unique method of postural therapy designed to eliminate chronic pain without surgery, drugs, or manipulation.
The brand has been franchising since 2003, building a dedicated client base of people seeking lasting relief from back pain, joint pain, and musculoskeletal issues through therapeutic exercise programs.
The franchise fee is $100,000.
Egoscue Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 | One-time payment upon signing |
| Royalty Fee | A minimum royalty of the greater of $2,500 per month or the average minimum royalty due during the immediately preceding 12 months of your previous franchise agreement; plus 6% of gross sales on monthly sales above $12,000 of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of gross sales or $500 per month, whichever is greater | National brand fund |
| Total Investment Range | $163,500 – $255,500 | Includes build-out, inventory, working capital |
The investment range of $164K–$256K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (A minimum royalty of the greater of $2,500 per month or the average minimum royalty due during the immediately preceding 12 months of your previous franchise agreement; plus 6% of gross sales on monthly sales above $12,000) and marketing fee (2% of gross sales or $500 per month, whichever is greater) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $100,000 | $100,000 |
| Travel, lodging, food, and other expenses while training | $2,000 | $5,000 |
| Real estate improvements | $10,000 | $40,000 |
| Rent (3 months of rent, plus a security deposit) | $12,000 | $33,000 |
| Therapy and fitness equipment, furniture, fixtures, and décor | $11,000 | $17,000 |
| POS system, computer hardware, and software | $4,000 | $8,000 |
| Signs | $4,000 | $5,000 |
| Misc. opening costs | $3,500 | $5,500 |
| Opening inventory and supplies | $5,000 | $7,000 |
| Grand opening marketing | $2,000 | $15,000 |
| Additional funds (3 months) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Currently, $250 per month |
| Audit Fee | Cost of audit |
| Relocation Fee | Reimbursement of our costs, including any legal fees. |
| Late Charges | $25 per day (up to $500 per late fee) |
| Non-Sufficient Fund Fees | $50 per bounced check or insufficient or disputed draft |
| Interest on Late Fees and Reports | 18% interest or maximum rate permitted by state law, whichever is less |
| Sales or Use Tax | Sum equal to tax imposed |
| System Non-Compliance Fines | $250 per violation |
| Transfer Visit Fee | Currently, $100 per visit fulfilled by another Egoscue® facility |
| Additional In-Person Training | $300 per day, per person |
| Additional Registrations for Certification and Training Courses | PAS: $2,749, AET: $3,795, ETS: $1,980, FO: $1,650 |
| Rescheduling Fee | $150 |
| Insurance Reimbursement Fee | Reimbursement of premium amount, plus $50 per hour for our time |
| PCI and DSS Audit Reimbursement Fee | Costs of the audit |
| Conference or Seminar Fee | $500 to $1,500 per person |
| Interim Management Fee | $300 per day, per person |
| Fees on Default | Our costs associated with your default |
| Post-Termination Fees | Actual costs |
| Unfulfilled Visit Liability | 50% of the outstanding visit liability existing at the time of termination |
| Early Termination Liquidated Damages | Average royalty from the previous 12 months multiplied by the lesser of 24 months or the remaining term of your franchise agreement |
| Indemnification | Our damages and costs |
| Non-Compete Violations | $200 per day for each competing business |
| Dispute Resolution Fees | Our legal fees and costs if we prevail |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 10 to 30 days |
| Classroom Training | ~174 |
| On-the-Job Training | ~46 |
| Training Location | online and at our facilities in Southern California (San Diego, CA) |
| Additional Training | We can require your operating principal and/or other key personnel to attend additional trainings if you are in default, or if we reasonably believe such training would be in the best interest of your franchise. Depending on availability and advanced written notice, if you would like additional in-person training, we may provide this training to you. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory for your Egoscue® facility. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Under the franchise agreement, we will grant you the right to use the system and proprietary marks at a specific location. However, we do not grant any specific protected territory for your location. You are restricted to operations from the approved franchised premises and may not, without our prior written approval, open or operate another outlet, or provide mobile or off-site services. Neither you, nor other franchisees may actively market within 20 miles of another franchisee’s Egoscue® facility. However, there are no territorial restrictions on our and our affiliates’ ability to advertise anywhere. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | You are not allowed to renew unless the average monthly royalty paid during the 12 months prior to the notice of renewal being given exceeds $2,500. Additionally, you must not be in default, must pay a successor franchise fee, modernize your Egoscue® facility to the then-current standards, and sign the then-current franchise agreement. When renewing, you may be required to sign a contract with materially different terms and conditions than your original contract. You are required to give us notice of your intent to renew between 6 and 12 months prior to the expiration of your franchise agreement (subject to state law). |
| Transfer Fee | $10,000 |
| Transfer Conditions | Conditions to transfer include you are not in default, all fees are current, new franchisee qualifies, transfer and training fees are paid, purchase agreement is approved, training for the new transferee arranged, new transferee signs the then-current franchise agreement, a release is signed by you, etc. You must also coordinate with the transferee to ensure coverage at the location during the transferee’s initial training. These conditions are subject to state law. |
| Termination for Cause | We can terminate if you materially breach and fail to cure. There are certain breaches for which we can terminate without giving you an opportunity to cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years within 25 miles of your Egoscue® facility, or within 20 miles of any other Egoscue® facility (including after assignment). If you compete within the restrictive period, then this non-compete period will be tolled for the period of your competition. Non-competition provisions are subject to state law. For a period of 3 years from termination, transfer, or expiration of your franchise agreement, you may not solicit to or on behalf of a competing business any former customer of your Egoscue® facility that you serviced as an Egoscue® franchisee, or customer of ours or of an affiliate or of another Egoscue® facility with whom you interacted during the term of the franchise agreement. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Your authorized representative must personally participate in the direct operation and supervision of your Egoscue® facility. However, your authorized representative does not need to be your clinic director and manage your Egoscue® facility full time. We recommend but do not require on-premises supervision by your authorized representative. You must hire a clinic director if your authorized representative will not be your clinic director. For the first 6 months of operation, your Egoscue® facility must have at least one therapist (which may be your clinic director) with ETS certification on-site. For the remaining term of the franchise agreement, your Egoscue® facility must have at least one therapist (which may be Your clinic director) with AET certification on-site when therapy is being delivered. Your authorized representative is not required to work a certain or minimum number of hours. However, your authorized representative must work sufficient hours to operate your franchise or supervise your Egoscue® facility so that it is operating at maximum capacity and efficiency. Additionally, although we do not require your authorized representative to be involved in the day-to-day on-premises management, your authorized representative is required to participate in your Egoscue® facility as follows: (i) be directly responsible for overseeing all accounting, reporting and bookkeeping, and all financial components of the Egoscue® facility; (ii) attend and complete all training and retraining courses required by us; (iii) attend any annual or special meetings of franchisees required by us; (iv) be directly involved with site selection, construction, remodeling; (v) be directly involved in all personnel decisions affecting the Egoscue® facility; and (vi) conduct frequent inspections of the Egoscue® facility operations to ensure the highest standards of professionalism, cleanliness and a general pleasant appearance, and compliance with our approved methods. |
| Required Suppliers | You must purchase or lease the following products and services from us, other sources designated or approved by us, or according to our specifications as set forth in the manuals: Therapy Equipment, Fitness Equipment, Computer Software and Hardware, Uniforms, Videos, Books, and Training Media, Interior Furniture and Décor Items, Marketing, Insurance. |
| Supply Restrictions | We may also require you to purchase advertising materials only from approved suppliers. We reserve the right for us or an affiliate to be an approved supplier or the only approved supplier of any of the items listed in the above table. Additionally, we reserve the right to require that all items used in the operation of your business be purchased from sources approved by us. |
| Franchisor Revenue from Suppliers | $5,692.95 or 0.18% of our total revenues of $3,160,402 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Egoscue Franchise Earnings — Item 19
Egoscue does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Egoscue Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Egoscue System Growth
Egoscue currently operates 22 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 2 | 30 |
| 2022 | 0 | 6 | 24 |
| 2023 | 0 | 0 | 24 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Kezos & Dunlavy for year ending September 30.
Egoscue Franchise — FAQ
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