Business
The Joint Corp. Acquires Northern California Regional Developer Territory
Expected to increase margin contribution and support corporate clinic growth opportunity SCOTTSDALE, Ariz., April 06, 2022 (GLOBE NEWSWIRE) -- The Joint Corp.
About this update from The Joint Corp.
[{"type":"text","content":"Expected to increase margin contribution and support corporate clinic growth opportunity\nSCOTTSDALE, Ariz., April 06, 2022 (GLOBE NEWSWIRE) -- 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 res...