The Joint Corp. Acquires Northern California Regional Developer Territory
April 06 2022 - 7:05AM
The Joint Corp. (NASDAQ: JYNT), the nation's largest provider of
chiropractic care through The Joint Chiropractic® network,
acquired the regional developer rights for the Northern California
territory for $2.4 million on April 1, 2022.
The demographic modeling for the Northern California region
indicates the potential for a total of 75 clinics. This includes
The Joint’s April 1st acquisition of the right to oversee 56
franchised clinics – 20 of which are currently operating and will
continue to be franchised and 36 of which the licenses have been
sold and are in active development. It also includes another 19
sites for future corporate or franchised clinic development.
“The acquisition of the regional developer rights for the
Northern California territory is an important development for our
growth in California,” said Peter D. Holt, President and Chief
Executive Officer of The Joint Corp. “Within every franchise
concept that utilizes a regional developer program to accelerate
its growth, regional developer territory ownership will shift from
time to time based on a variety of reasons – both financial and
personal. At The Joint, we stand ready to evaluate such
opportunities to execute the best course of action for our
patients, franchisees, and shareholders. We acquired the regional
developer territory rights in Northern California to increase our
margin contribution within the franchise segment and will now
directly support the existing and future franchised units that will
remain in the territory. This acquisition also provides the
opportunity to accelerate our growth of greenfield clinics within
the territory.”
Forward-Looking StatementsThis press release
contains statements about future events and expectations that
constitute forward-looking statements. Forward-looking statements
are based on our beliefs, assumptions and expectations of industry
trends, our future financial and operating performance and our
growth plans, taking into account the information currently
available to us. These statements are not statements of historical
fact. Forward-looking statements involve risks and uncertainties
that may cause our actual results to differ materially from the
expectations of future results we express or imply in any
forward-looking statements, and you should not place undue reliance
on such statements. Factors that could contribute to these
differences include, but are not limited to, the continuing impact
of the COVID-19 outbreak on the economy and our operations
(including temporary clinic closures, shortened business hours and
reduced patient demand), our failure to develop or acquire
company-owned or managed clinics as rapidly as we intend, our
failure to profitably operate company-owned or managed clinics, our
inability to identify and recruit enough qualified chiropractors
and other personnel to staff our clinics, due in part to the
nationwide labor shortage, and the other factors described in “Risk
Factors” in our Annual Report on Form 10-K as filed with the SEC
for the year ended December 31, 2021, as updated or revised for any
material changes described in any subsequently-filed Quarterly
Reports on Form 10-Q or other SEC filings. Words such as,
"anticipates," "believes," "continues," "estimates," "expects,"
"goal," "objectives," "intends," "may," "opportunity," "plans,"
"potential," "near-term," "long-term," "projections,"
"assumptions," "projects," "guidance," "forecasts," "outlook,"
"target," "trends," "should," "could," "would," "will," and similar
expressions are intended to identify such forward-looking
statements. We qualify any forward-looking statements entirely by
these cautionary factors. We assume no obligation to update or
revise any forward-looking statements for any reason or to update
the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new
information becomes available in the future. Comparisons of results
for current and any prior periods are not intended to express any
future trends or indications of future performance, unless
expressed as such, and should only be viewed as historical
data.
About The Joint Corp. (NASDAQ: JYNT) The Joint
Corp. revolutionized access to chiropractic care when it introduced
its retail healthcare business model in 2010. Today, it is the
nation's largest operator, manager and franchisor of chiropractic
clinics through The Joint Chiropractic network. The
company is making quality care convenient and affordable, while
eliminating the need for insurance, for millions of patients
seeking pain relief and ongoing wellness. With more than 700
locations nationwide and nearly 11 million patient visits
annually, The Joint Chiropractic is a key leader in the
chiropractic industry. Ranked number one on Forbes' 2022
America's Best Small Companies list, number three
on Fortune's 100 Fastest-Growing Companies list and
consistently named to Franchise Times "Top 400+
Franchises" and Entrepreneur's "Franchise 500®"
lists, The Joint Chiropractic is an innovative force,
where healthcare meets retail. For more information,
visit www.thejoint.com.
Business StructureThe Joint Corp. is a
franchisor of clinics and an operator of clinics in certain states.
In Arkansas, California, Colorado, District of Columbia, Florida,
Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New
Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode
Island, South Dakota, Tennessee, Washington, West Virginia and
Wyoming, The Joint Corp. and its franchisees provide management
services to affiliated professional chiropractic practices.
Media Contact: Margie Wojciechowski, The Joint
Corp., margie.wojciechowski@thejoint.comInvestor
Contact: Kirsten Chapman, LHA Investor Relations,
415-433-3777, thejoint@lhai.com
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