Here’s How You Make Money

Here’s How You Make Money

FINANCIAL PERFORMANCE REPRESENTATIONS

The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about a possible performance at a particular location or under particular circumstances.

The information provided in the below tables represents Gross Revenues achieved by our affiliate during the 2019 and 2020 calendar years: We have not included the Gross Revenues for any of our Unit Franchisees because we do not have any Unit Franchisees that have been in operation for at least 12 consecutive months.

Gross Sales Monthly Chart
Gross Sales Monthly Comparison Chart

Notes:

  1. The chart is an historic financial performance representation reflecting the actual Gross Sales of our affiliate in Lincoln, Nebraska (“our Affiliate”). Our Affiliate opened the first NuSpine Chiropractic® Clinic in Lincoln, Nebraska in October 2013. Our Affiliate offers substantially the same products and services as our NuSpine Chiropractic® Unit Franchises will offer to their patients. We do not anticipate that this will change in the future. Our Affiliate does not operate under a Franchise Agreement. Accordingly, it does not pay franchise fees or other fees outlined in Item 6, including Royalty and Brand Fund Fees. The State of Nebraska does not require Clinics to operate using the P.C. structure using management service agreements.
  2. For purposes of the above information, Gross Sales means the total sales of the affiliate center, less taxes, discounts, rebates, and returns. In computing these figures, we took the actual sales of the center, and no other deductions were applied.
  3. The information in the chart was compiled based on actual reported sales by our affiliate center based on sales reports submitted to us by the affiliate center. The figures reported to us by the affiliate center were not audited. We have not independently audited or verified the accuracy of these numbers.
  4. A particular NuSpine Chiropractic® Unit Franchise’s financial performance may be affected by numerous factors that may vary due to the individual characteristics of the Unit Franchise. These factors include: competition from other chiropractic or medical providers, appreciation and acceptance of the services and products the NuSpine Chiropractic® franchise offers in its community, a franchisee’s experience, business development and managerial skills, advertising programs, personnel and cost controls, geographic and socioeconomic conditions in the franchisee’s area, business cycles and performance of the economy locally, nationally and worldwide.

We do not anticipate making changes to our business model to adapt to consumer demands post- COVID-19. However, this could change in the future.

Written substantiation for the financial performance representations made in this Item 19 will be made available to the prospective franchisee upon reasonable request.

We encourage you to consult with your financial advisors in reviewing the information in this Item 19, in particular, in estimating the categories and amount of additional expenses that may be incurred in establishing and operating a NuSpine Chiropractic® Unit Franchise.

Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll sell as much.

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