The Joint Chiropractic Boasts Top Tier FUND Score for Franchise Financing
The Joint Corp. (NASDAQ: JYNT) announced a strong FRANdata FUND score of 910 out of 950, indicating low default risk in franchising. This score surpasses the average of 593, making it easier for franchisees to secure favorable financing. The score is derived from 12 credit risk factors, evaluating the likelihood of loan repayment within the franchise system. CEO Peter D. Holt emphasized the importance of this score in attracting entrepreneurs to invest in The Joint Chiropractic, which offers accessible chiropractic care across its 800+ clinics, aiming to simplify patient care without insurance.
- Achieved a FRANdata FUND score of 910 out of 950, suggesting low default risk for franchise financing.
- The score allows franchisees better credit access and financing terms.
- Risks include labor shortages impacting recruitment of qualified staff.
- Inflation could hinder discretionary spending by patients.
- Potential disruptions from COVID-19 may affect operations unpredictably.
Similar to a FICO score on consumers, a FUND Score on franchise systems is used by banks to help determine their willingness to make loans to a particular brand and, if so, to help banks structure and set financial terms of the loan. A total of 12 credit risk factors are evaluated for each brand. The resulting score informs a lender of the likelihood that borrowers in a specific franchise system will meet the loan agreement terms.
FUND Scores have been applied to hundreds of franchise systems. Both quantitative and qualitative factors are consistently used, providing a proper perspective of what good and poor franchise performance look like from a lender's perspective.
"I'm very proud to see the continuation of such a high FUND score for The Joint Chiropractic. FRANdata's independent review of our company validates and echoes why so many entrepreneurs are choosing to invest in our brand," said
About The Joint Chiropractic
Forward-Looking Statements
This 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 nationwide labor shortage, which has negatively impacted our ability to identify and recruit qualified chiropractors and other personnel to staff our clinics, inflation, which has led to increased labor costs and interest rates and may lead to reduced discretionary spending by our current and potential patients, the continuing impact of the COVID-19 outbreak, which has caused significant disruption to our operations in the past and may continue to do so in the future in ways that remain unpredictable, our inability to successfully implement our growth strategy if we or our franchisees are unable to locate and secure sites for clinic locations or attract patients to our clinics, a failure to profitably operate company-owned or managed clinics, short-selling strategies and negative opinions posted on the internet which could drive down the market price of our common stock and result in class action lawsuits, our failure to remediate any future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence, expected new federal regulations and state laws and regulations regarding joint employer responsibility, which could negatively impact the franchise business model, a breach of our IT security systems and those of our third-party service providers (as recently experienced by one of our marketing vendors), which could result in civil liability and a diminished public perception of our security measures, and other factors described in our filings with the
Business Structure
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FAQ
What is the FRANdata FUND score for The Joint Corp. (JYNT)?
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