WEBULL

The Joint Sells 31 Clinics to Largest Franchisee, Expands Northwest Territory Ahead of June 30 Deal Close

Benzinga · 06/25 11:07

The Joint Corp. (NASDAQ:JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic® network, has signed a binding Asset Purchase Agreement (APA) for the sale of 31 corporate owned and managed clinics in Arizona and New Mexico to Joint Ventures, LLC in exchange for cash and the regional developer (RD) territory rights of the Northwest region. The sale is expected to close on or before June 30, 2025. In addition, the company refranchised five clinics to Chiro 93, LLC in the Kansas City region.

  • Joint Ventures, The Joint's largest franchisee, will acquire 31 clinics, increasing its clinic count to 96 clinics located throughout California, Oregon, New Mexico, and Arizona, and agreed to open another 10 clinics in this same region.
  • The Joint to acquire the regional developer rights to the Northwest region, consisting of 46 existing franchised clinics and 30 sites for future clinic development.
  • The Joint sold the five clinics along with future development rights in the Kansas City region to Chiro 93, led by existing franchisee Dr. Clint Morrow, D.C.

     

Joint Ventures franchisee, Chris O'Neal stated, "We are proud to be the largest franchise group at The Joint and plan to increase our ownership by more than 50% to over 100 clinics when we complete our expansion. When run correctly, the clinics provide excellent patient care, conduct compelling marketing campaigns growing the patient base and deliver strong operating metrics. We support Sanjiv's growth plan and are excited to expand our position and earnings potential with The Joint."

The Joint Corp.'s President, Chief Executive Officer and Director, Sanjiv Razdan said, "Chris is a strong operator, and we are delighted to augment our partnership with Joint Ventures. Their large investment demonstrates confidence in our business model. This significant validation is compounded by additional franchisees' interest in our entire corporate portfolio.