How to Finance an ARCpoint Labs Franchise: Drug and DNA Testing
An ARCpoint Labs franchise loan finances a lab screening and testing business that serves both employers and individual consumers. Locations handle services such as drug and alcohol screening, DNA testing and other lab testing, which means the business depends on licensing, specimen collection procedures and commercial accounts as much as on a storefront. This article explains how financing generally works for an ARCpoint Labs location and what lenders focus on.
US Medical Funding is not affiliated with, sponsored by or endorsed by ARCpoint Labs; the name is used only to describe the business. Figures from franchise disclosure documents can change with each new version, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax, billing or compliance advice.
ARCpoint Labs Franchise Loan at a Glance
- Franchisor: ARCpoint Franchise Group, LLC, a South Carolina limited liability company headquartered in Atlanta, Georgia
- Franchising history: franchising since 2005, and under the ARCpoint Labs name since 2010
- System size: 123 franchised ARCpoint Labs businesses in operation as of December 31, 2024, according to 2025 franchise disclosure materials
- Customers: commercial businesses and consumers
- Costs and fees: confirm the franchise fee, royalty and estimated initial investment in Items 5 through 7 of the current ARCpoint Labs disclosure document
- SBA Franchise Directory: listed, with no additional directory note
What Is ARCpoint Labs?
ARCpoint Labs is a franchise system of lab screening and testing businesses. Franchise disclosure materials describe the locations as providing lab screening, testing and related services to commercial businesses and consumers. The franchisor began franchising in 2005 under an earlier name focused on drug, alcohol and paternity DNA testing, and it has franchised under the ARCpoint Labs name since 2010.
According to 2025 franchise disclosure materials, there were 123 franchised ARCpoint Labs businesses in operation at the end of 2024. The franchisor shares its Atlanta headquarters with an affiliated testing franchise system.
What makes this business different from a walk-in clinic is its business-to-business side. Employers use testing providers for pre-employment and ongoing workplace screening, and other organizations may need testing for legal, compliance or safety programs. That mix shapes how revenue is earned and how quickly cash comes in, which in turn shapes the financing.
Licensing, Collection Standards and Lab Relationships
Testing businesses operate under rules that vary by service and state. Points to confirm before applying for a loan include:
- State requirements: some states license specimen collection sites or require physician oversight for certain tests
- Collector training: workplace drug testing generally requires trained collectors who follow chain-of-custody procedures
- Laboratory certification: any testing performed on site, even simple waived tests, generally requires appropriate federal laboratory certification
- Legal DNA testing: tests used for legal purposes generally require strict identity verification and chain-of-custody documentation
- Reference labs: most specimens are analyzed by outside laboratories, so the location’s processes and partner relationships matter
Our article on CLIA certificate costs and timing explains the federal certification process in general terms. The franchisor and your advisors should confirm exactly what applies to the services you plan to offer in your state.
ARCpoint Labs Franchise Costs
The ARCpoint Labs disclosure document is the reliable source for this brand’s fees and investment. We could not verify the current ARCpoint Labs cost figures from the franchisor’s own materials, so this article does not quote them. Request the current disclosure document and review it with an attorney and accountant.
Initial Franchise Fee
Item 5 lists the initial franchise fee and any multi-unit or development fees. This fee is usually paid when the franchise agreement is signed, so it belongs in the loan’s sources and uses.
Build-Out and Equipment
A testing location generally needs a reception area, private collection rooms, a collection restroom that meets procedural standards, secure specimen storage and office space for client account management. Equipment is usually lighter than in a clinic or full laboratory, but may include collection supplies, breath alcohol testing devices, refrigeration, computers and software.
Opening Costs and Working Capital
Item 7 covers deposits, signage, insurance, training, marketing and additional funds for an initial period. Because employer accounts can take time to win and may pay on invoice terms, working capital deserves careful attention.
Ongoing Fees and Your ARCpoint Labs Franchise Loan
Item 6 lists royalties, marketing fund contributions, technology fees and other recurring charges. Every ARCpoint Labs franchise loan projection should include those fees alongside rent, payroll, reference lab costs and courier or shipping costs.
Cash flow timing is the key healthcare-specific issue. Consumer services are often paid at the time of service, while employer accounts may be invoiced and paid later. A business that grows quickly with commercial clients can find its cash tied up in receivables. Our article on laboratory working capital explains how testing businesses bridge that gap.
Franchisor Requirements for New Owners
The franchisor sets its own net worth, liquidity and background requirements and reviews each candidate. Confirm the current requirements directly with the franchisor and in the disclosure document. Lenders will apply their own equity and reserve expectations.
Business development skills matter in this model. Owners who can call on employers, staffing firms and other organizations, and who can manage a sales pipeline, tend to present a stronger plan to lenders.
Ways to Own an ARCpoint Labs Location
Opening a New Location
A new location requires financing for the franchise fee, improvements, equipment and working capital. Our laboratory start-up financing page explains how lenders approach new testing businesses.
Buying an Existing Location
With an established franchise network, resales may be available. A buyer benefits from existing employer accounts and financial history but must review client contracts, licenses and certifications, which may not transfer automatically. Our lab acquisition loans page covers purchase financing, and our article on buying a toxicology lab discusses related due diligence.
Multiple Locations
Ask the franchisor about development agreements and territory rules under Item 12. Additional locations are usually financed one at a time as earlier locations stabilize.
Financing Options for an ARCpoint Labs Franchise
SBA 7(a) Loans
SBA 7(a) financing can combine the franchise fee, improvements, equipment and working capital in one loan. The brand’s SBA Franchise Directory listing supports eligibility review.
Conventional Practice Loans
Experienced operators and existing owners with strong liquidity may qualify for conventional loans for healthcare businesses.
Equipment Financing
Breath alcohol devices, point-of-care testing equipment, computers and vehicles for on-site collections, where permitted, can be financed through lab equipment financing and leasing.
Working Capital and Lines of Credit
A working capital line can cover payroll, reference lab bills and marketing while employer invoices are outstanding.
Seller Financing on Resales
On a resale, a seller may carry part of the price as a note. Seller notes are typically subordinate to the primary loan, and some programs limit how they are structured.
SBA Loans for ARCpoint Labs Franchisees
ARCpoint Labs is listed on the SBA Franchise Directory under code S0052, with no additional directory note. The listing means the brand’s franchise documents have been reviewed for SBA eligibility, so a lender can focus on the borrower and the project. It does not guarantee approval.
The SBA 7(a) program maximum is currently $5 million, though rules can change. Bring the disclosure document, franchise agreement, lease or letter of intent, improvement bids, a licensing summary and a sales plan for commercial accounts when you apply.
How Lenders Evaluate an ARCpoint Labs Franchise Loan
Credit and Financial History
Lenders review each owner’s personal credit and business history.
Liquidity and Net Worth
Lenders look at the equity injection and the reserves left after opening.
Experience
Healthcare, laboratory, human resources, safety or business-to-business sales experience can strengthen a request.
Business Plan and Projections
Projections should separate consumer walk-in revenue from employer and organizational accounts, show a realistic sales ramp, and include reference lab costs, franchise fees and the timing of invoice payments.
Compliance Plan
Lenders want to see that the owner understands collection standards, licensing and any required certifications, and has a plan for trained staff.
Client Mix and Contracts
For an existing location or an owner with signed letters of intent, lenders look at how revenue is spread across clients. Heavy reliance on a single employer or industry can make cash flow fragile if that client changes providers or reduces hiring. Written service agreements, pricing terms and payment terms help a lender judge how durable the revenue is, so keep them organized and current.
The Disclosure Document
Lenders review fees, territory, term and transfer provisions. Owners should also read Items 3 and 4 for litigation and bankruptcy history and Item 19 to see whether financial performance information is provided.
Real-World Scenarios
A human resources professional opening a location: an owner with employer relationships opens a new location. The lender focuses on the sales plan for commercial accounts and on working capital to cover receivables.
A buyer acquiring an established location: a buyer purchases a location with existing employer contracts. The lender reviews client concentration, historical financials and the transfer of licenses and accounts.
An owner adding on-site employer testing: where the franchise agreement permits it, an existing franchisee adds a vehicle and equipment for on-site collections. Equipment financing covers the purchase without draining cash reserves.
Common Mistakes to Avoid
- Underestimating how long it takes to sign employer accounts
- Ignoring the gap between invoicing and payment in cash flow projections
- Relying on one or two large clients for most revenue
- Opening before collection staff are trained and certified as required
- Assuming licenses and contracts transfer automatically on a resale
Our article on common lab loan mistakes covers related pitfalls.
Next Steps to Finance Your ARCpoint Labs Franchise
Step 1: Review the disclosure document. Confirm fees, the Item 7 estimate and territory terms with an attorney and accountant.
Step 2: Confirm licensing and collection requirements. Identify what your state and your planned services require.
Step 3: Organize your finances. Prepare personal financial statements, tax returns and documentation of liquid funds.
Step 4: Secure a site. Obtain a lease or letter of intent and improvement bids.
Step 5: Build projections. Model consumer and commercial revenue separately, and use our SBA loan calculator to estimate payments for planning purposes.
Step 6: Apply. Submit a complete package covering the franchise, compliance plan and sales strategy.
ARCpoint Labs Franchise Loan FAQs
How much does an ARCpoint Labs franchise cost?
Item 7 of the ARCpoint Labs disclosure document provides the estimated initial investment. Costs depend on the site, improvements, equipment and working capital.
How many ARCpoint Labs locations are there?
According to 2025 franchise disclosure materials, there were 123 franchised ARCpoint Labs businesses in operation as of December 31, 2024.
Is ARCpoint Labs eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory. Each borrower and project is still reviewed individually.
Do I need a medical or lab background?
Not necessarily, but you will need trained staff and must meet state and federal requirements for the services offered. Business-to-business sales experience is especially useful.
Who are ARCpoint Labs customers?
Franchise disclosure materials describe customers as commercial businesses and consumers.
Can I finance equipment or an on-site collection vehicle separately?
Yes. Equipment loans and leases can cover testing devices, technology and vehicles.
How do employer accounts affect my loan request?
Employer accounts can build steady, repeat volume, but they are often invoiced rather than paid at the time of service. Lenders will want projections that show when invoices are collected and enough working capital to cover the gap.
Does the franchisor offer financing?
Check Item 10 of the current disclosure document.
Can I buy an existing location?
Yes, subject to franchisor approval. Review client contracts, licenses and certifications carefully.
What documents do I need to apply?
Expect to provide the disclosure document, franchise agreement, lease or letter of intent, improvement bids, projections, tax returns, a personal financial statement and a sales plan.
Final Thoughts
An ARCpoint Labs franchise loan works best when the plan reflects how a testing business really earns and collects revenue. The brand’s SBA directory listing helps with eligibility, while a strong commercial sales plan, a clear compliance approach and enough working capital to carry receivables strengthen the request.
US Medical Funding helps owners finance drug testing, DNA testing and other lab businesses, including franchise locations. Learn more about our lab and pathology business financing.
