QC Kinetix

## Executive Summary

QC Kinetix is the largest regenerative medicine franchise in North America, offering non-surgical treatments utilizing PRP, plasma, and stem cells for joint pain and musculoskeletal disorders. Founded in 2017 in Charleston, South Carolina and franchising since 2020, the brand experienced explosive growth to nearly 200 units before a 2024 restructuring. Following a comprehensive brand transformation (QCK 2.0), the company relaunched franchise expansion in September 2025 with improved unit economics showing a 22.51 percentage point increase in average clinic profitability. With investment ranging from $250,100 to $655,080 and average gross revenue of $759,307, QC Kinetix targets entrepreneurs in the growing alternative medicine sector.

## The Business

QC Kinetix operates concierge-style medical clinics providing regenerative medicine treatments as alternatives to pain medications and surgery. The model has expanded beyond pain management to include hair growth treatments and mens hormone replacement therapy.

Key business characteristics: - Non-surgical, biologic treatments (PRP, Plasma, Stem Cells) - Concierge-style patient experience - Typical patient visit: $10,000+ - Busy day target: 10 new patients - Owner does not need to be a physician (licensed physician required on staff) - 95% of franchisees do not have medical backgrounds - 10-year franchise agreement term - Protected territory (one location per DMA up to 500,000 population)

## The Numbers

| Metric | Details | |--------|----------| | Initial Franchise Fee | $55,000 | | Total Investment (Single Clinic) | $250,100 - $655,080 | | Multi-Unit Investment | Starting at $350,100 | | Royalty Fee | 8% of weekly gross revenue | | Brand Fund | Up to 1% of gross revenues | | Initial Local Marketing | $20,000 - $40,000 (Month 1) | | Monthly Marketing (Month 6+) | $40,000 - $50,000 | | Average Gross Revenue | $759,307 | | Liquid Capital Required | $100,000 | | Net Worth Required | $600,000 | | Current Locations | 100+ | | Target Locations | 350 nationwide |

## System Health

**2024 Challenges:** - Net loss of 17 units (184 to 167) - Systemwide sales dropped 28.6% ($157M to $112M) - Leadership change: Mark Montini became CEO in June 2024

**QCK 2.0 Transformation (July 2024 - Present):** - First quarter of same-clinic sales growth in Q2 2025 (after 5 quarters of decline) - Average clinic profitability increased 22.51 percentage points (from 2.20% to 24.71%) - Relaunched franchise development in September 2025 - Targeting 50 new franchise owners and 120 new clinics over 24 months - Refranchising opportunities for select corporate clinics

**Recognition:** - Entrepreneur Top 10 New and Emerging Franchises 2024 (#9) - Entrepreneur Fastest Growing Franchises (#48) - Inc. 5000 (#62 in 2021, 5,873% three-year growth) - Franchise Times Fast & Serious List (#1 debut)

## Franchisee Experience

**Training & Support:** - Comprehensive initial training program - Operational systems and protocols - Marketing support and lead generation - Protected territories with exclusive DMAs

**Franchisee Profile:** - 95% of franchisees lack medical backgrounds - Ideal for entrepreneurs who can manage medical teams and back-office operations - Also appeals to healthcare professionals (primary care, sports medicine, PAs, chiropractors, nurse practitioners)

**Positive Feedback:** - Innovative model praised by franchisees - Personal concierge approach to medicine highlighted - Strong patient testimonials about outcomes

## Risk Assessment

**Concerns:** 1. **Regulatory Uncertainty:** Regenerative medicine faces evolving FDA scrutiny 2. **Recent Performance Decline:** 2024 saw unit losses and revenue drops 3. **High Marketing Requirements:** $40K-$50K/month ongoing marketing significant 4. **Controversial Treatments:** Some medical professionals question efficacy of unproven biologics 5. **Not BBB Accredited:** BBB overview shows negative feedback from some customers 6. **Class Action Lawsuit:** Proposed class action lawsuit reported 7. **Staffing Model:** Critics note clinics may be staffed by mid-levels rather than physicians

**Mitigating Factors:** - QCK 2.0 transformation showing measurable results - Strong AUV of $759K (3x sector average) - 22.51 percentage point profitability improvement - Experienced new leadership team - Large addressable market for non-surgical pain solutions - Growing consumer interest in regenerative medicine

## Competitive Position

**Direct Competitors:** - Regenexx - Traditional orthopedic practices offering PRP - Pain management clinics - Independent regenerative medicine providers

**Competitive Advantages:** - Largest franchise system in regenerative medicine - Established brand recognition - Scalable franchise model for non-medical operators - Concierge patient experience - Multi-service expansion (hair, hormone therapy)

**Competitive Challenges:** - Medical community skepticism about treatments - Premium pricing ($10K+ per treatment) - Regulatory environment could shift - Reputation management challenges

## Validation Questions for Franchisees

1. What is the current success rate for patient outcomes, and how is this measured? 2. What percentage of leads convert to paying patients, and what is the customer acquisition cost? 3. How has the QCK 2.0 transformation specifically impacted franchisee profitability? 4. What are the details of the proposed class action lawsuit, and what is its current status? 5. How does the company respond to medical community criticism of treatment efficacy? 6. What is the current franchisee satisfaction rate post-transformation? 7. What are the requirements and process for refranchising corporate locations?

## Data Gaps

- **Patient Outcomes Data:** Clinical efficacy data not publicly disclosed - **Franchisee Turnover Rate:** Number of exited franchisees not detailed - **Unit-Level P&L:** Detailed expense breakdown not available - **Lead Generation Metrics:** Cost per lead and conversion rates not disclosed - **Lawsuit Details:** Specifics of legal proceedings unclear - **Physician Staffing Model:** Exact requirements for medical staffing not specified