How to Finance a FYZICAL Franchise: Therapy and Balance Clinics
A FYZICAL franchise loan can fund several very different projects: a new physical therapy center owned by a licensed therapist, a new center owned by an investor who hires a therapist, the conversion of an existing private practice to the brand, or a center affiliated with a physician practice. Each path has its own Item 7 estimate and its own financing profile. This article walks through the franchisor’s published costs, the SBA directory notes for the brand and how lenders typically underwrite physical therapy and balance centers.
US Medical Funding is not affiliated with, sponsored by or endorsed by FYZICAL Therapy & Balance Centers; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax, billing or compliance advice. Review the current Franchise Disclosure Document (FDD) with a franchise attorney and an accountant.
FYZICAL Franchise Loan at a Glance
- History: business started in 2012 and began franchising in 2013; headquartered in Sarasota, Florida
- System size: 539 open centers as of December 31, 2025, including 489 franchisee-owned and 50 company- or affiliate-owned, per the franchisor
- Initial franchise fee: $49,000 for the first center, $35,000 for a second and $20,000 for a third
- Estimated initial investment (2026 FDD): $125,392 to $481,536 for a new center owned by a licensed physical therapist; $175,392 to $582,036 for a new center that hires a licensed therapist; $75,085 to $191,385 for a conversion
- Royalty: the greater of 6% of gross revenue or a monthly minimum that steps up from $1,000 in year one to $2,000 in year two and $3,000 in years three through ten
- Marketing fund: not currently charged; up to an estimated 2% of gross revenue if initiated
- Veterans: 10% off the first center’s franchise fee for qualified veterans with majority ownership
- SBA Franchise Directory: listed, with notes on the Lease Addendum, management agreements and the Area Representative Agreement
What Is FYZICAL Therapy & Balance Centers?
FYZICAL started as a business in 2012 and began franchising in 2013. It is headquartered in Sarasota, Florida. The franchisor reports 539 open centers at the end of 2025, the large majority owned by franchisees.
The centers provide traditional physical therapy, injury and post-surgical rehabilitation, balance and vestibular care, fall-prevention services and approved wellness-related services. The balance and fall-prevention focus is what distinguishes the concept from many other outpatient physical therapy clinics. The franchisor’s consumer site notes that each location is independently owned and operated and that services vary by location and are subject to state and federal regulations.
The franchisor offers several ownership paths: a new center owned by a licensed physical therapist, a new center owned by a non-clinical investor who hires a licensed therapist, a conversion of an existing therapy practice, an MD affiliate center, development rights and an Area Representative program. For lenders, the path you choose changes the cost, the risk profile and, in one case, SBA eligibility.
Why Lenders Like and Scrutinize PT Franchises
Outpatient physical therapy has steady demand from orthopedic injuries, surgery recovery and an aging population, and the balance and fall-prevention focus aligns with that demand. At the same time, therapy revenue depends heavily on insurance and Medicare reimbursement, credentialing and therapist staffing. Lenders weigh both sides. Our article on whether physical therapy franchise financing is worth it covers the general trade-offs.
FYZICAL Franchise Costs
Initial Franchise Fee
According to the franchisor’s summary of its 2026 FDD, the initial franchise fee is $49,000 for the first center, $35,000 for a second center and $20,000 for a third. Qualified veterans with majority ownership receive 10% off the first center’s fee.
Item 7 by Ownership Path
The franchisor’s 2026 FDD, dated April 30, 2026, provides separate Item 7 estimates for each model:
- New center, licensed physical therapist owner: $125,392 to $481,536
- New center, owner hiring a licensed therapist: $175,392 to $582,036
- Conversion center: $75,085 to $191,385
- MD affiliate center: $173,192 to $581,409
The gap between the two new-center models largely reflects the cost of hiring a therapist while the center ramps up. The franchisor notes that a licensed physical therapist who plans to treat in the clinic can expect lower costs than an owner who must hire one.
Build-Out and Equipment
In the franchisor’s breakdown of its 2025 FDD for a new center, build-out and leasehold improvements ran $65,000 to $180,000 and furniture, fixtures and equipment ran $11,000 to $76,000. Those two lines drive much of the variation in total cost. Treatment tables, exercise and rehabilitation equipment and balance-focused technology make up the equipment side, and second-generation medical space can reduce build-out compared with a raw shell. Our article on financing a physical therapy clinic build-out goes deeper.
Working Capital
The same 2025 breakdown listed $75,000 to $150,000 in additional funds for the first nine months for non-clinical owners. That reserve covers payroll, rent and marketing while referrals and insurance collections build. Owners who hire a therapist need to carry that salary from opening day.
Grand Opening Marketing
The franchisor lists a grand opening marketing spend of $5,000 to $18,000, paid as a lump sum before opening.
Ongoing Fees and How They Affect Your Loan
Royalty With a Monthly Minimum
FYZICAL’s royalty is the greater of 6% of gross revenue or a monthly minimum: $1,000 in year one, $2,000 in year two and $3,000 in years three through ten. In the early months, when revenue is lower, the minimum may be the amount you actually pay. Lenders will build that floor into the debt service analysis.
Marketing Fund
The franchisor does not currently charge a marketing fund contribution but discloses that it may initiate one at up to an estimated 2% of gross revenue. A careful projection includes that possibility as a sensitivity case.
How Lenders Treat These Fees
Debt service coverage is calculated after royalty, marketing, rent, payroll, malpractice and liability insurance, software and billing costs. Because physical therapy revenue is collected after claims are processed, lenders often look closely at the first year, when the royalty minimum and full payroll apply before collections reach a steady pace.
Franchisor Requirements for New Owners
The franchisor’s materials do not publish a net worth or liquid capital requirement; ask the development team for current standards. Its funding guidance for prospective owners stresses having non-borrowed funds available as an initial capital injection, collateral where possible, and enough personal reserves to cover household costs before the business is profitable.
Both clinicians and non-clinical owners can own a center. A licensed physical therapist can treat patients directly, while an investor-owner hires a licensed therapist to lead clinical care. The franchisor supports single-unit and multi-unit operators.
Ways to Own a FYZICAL Franchise
New Center With a Therapist Owner
A licensed physical therapist who opens a new center and treats patients has the lowest new-center Item 7 range and brings clinical credibility to the loan request. Lenders still look for business and management readiness. Our physical therapy start-up financing page explains how these requests are structured.
New Center With an Investor Owner
A non-clinical owner hires a licensed therapist. Lenders focus on the owner’s management experience, the hiring plan and enough working capital to carry therapist salaries until revenue catches up.
Conversion of an Existing Practice
An independent physical therapy practice can convert to the brand. With existing patients, staff and payer contracts, a conversion is often the easiest path to underwrite, and the Item 7 range is much lower. Lenders review the practice’s historical financials and how the franchise fee and royalty change cash flow.
Buying an Existing FYZICAL Center
With hundreds of franchised centers, resales are part of the system. Lenders look at historical collections, payer mix, therapist retention and referral sources, and the franchisor must approve the transfer. See our physical therapy practice acquisition financing page.
MD Affiliate Centers
The franchisor offers a model for centers affiliated with physician practices. These arrangements raise ownership, referral and compliance questions that vary by state, so involve healthcare counsel early.
Development Rights and Area Representatives
The franchisor also offers development rights and an Area Representative program. As explained below, applicants operating under the Area Representative Agreement are not eligible for SBA assistance.
Financing Options for a FYZICAL Franchise
SBA 7(a) Loans
SBA 7(a) loans are often used for new FYZICAL centers and resales because one loan can combine the franchise fee, build-out, equipment, grand opening marketing and working capital. The SBA 7(a) program maximum is currently $5 million, which leaves room for multi-center owners as well. The franchisor’s own funding guidance describes SBA loans as a recommended option.
SBA 504 Loans for Real Estate
Owners who buy a building for their center may consider SBA 504 loans, which are designed for owner-occupied real estate and long-lived equipment. Note the SBA directory instruction about the Lease Addendum when the real estate secures the loan.
Conventional Loans
Experienced operators, multi-center owners and converting practices with solid history may qualify for conventional practice loans on each lender’s own terms.
Equipment Financing
Treatment tables, rehab equipment and balance technology can be financed separately to preserve cash. Our physical therapy equipment financing and leasing page compares options.
Working Capital and Lines of Credit
Therapy revenue arrives after claims are paid, and new providers may wait on credentialing before they can bill some payers. A physical therapy working capital line of credit can bridge payroll and rent while receivables build.
Seller Financing on Resales
When buying an existing center, a seller note can cover part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit how they count toward equity.
SBA Loans for FYZICAL Franchisees
FYZICAL Therapy & Balance Centers is listed on the SBA Franchise Directory. The listing includes three notes. In plain English:
- Lease Addendum: when the real estate where the center is located will secure the SBA loan, the Lease Addendum to the lease agreement should not be signed. It is intended for leased locations.
- Management agreements: if the center operates under a management agreement with a third party, the lender must review it under SBA rules to decide whether the borrower and the management company are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor.
- Area Representative Agreement: applicants operating under the Area Representative Agreement are not eligible for SBA assistance. A unit franchisee can still use SBA financing for its center.
Practical tips for a FYZICAL franchise loan under the SBA program:
- Use the Item 7 range for your specific ownership path, not the overall headline range
- Show the royalty minimum in your first-year projections
- Document your equity injection and personal reserves
- For investor-owners, include the therapist’s resume or a detailed hiring plan
- Explain your credentialing timeline with major payers
Estimate payments at several loan amounts with our SBA loan calculator. Results are for planning only.
How Lenders Evaluate a FYZICAL Deal
Personal Credit and Financial History
Lenders review personal credit, tax returns and a personal financial statement for each owner. Therapists with student loans should be ready to explain repayment plans.
Liquidity and Collateral
The franchisor’s funding guidance emphasizes non-borrowed funds for the initial injection and collateral such as real estate or other assets. Lenders also want to see reserves left after closing.
Clinical and Management Experience
A therapist-owner brings clinical depth; an investor-owner brings management skills. Lenders want to see both covered, either in one person or through a clear team plan.
Payer Mix and Credentialing
Physical therapy relies on commercial insurance, Medicare and other payers, each with its own enrollment process and payment timing. Lenders will ask how quickly you expect to be credentialed and paid. Our article on how lenders review physical therapy payer mix explains what they look for.
Business Plan and Projections
Build projections around therapist capacity, visits per day, referral sources, reimbursement per visit in your market, the royalty minimum and payroll. For conversions, start from the practice’s actual results and show the effect of franchise fees.
The FDD and Franchise Agreement
Lenders review Items 5, 6 and 7, Item 12 for territory and Item 17 for term, renewal and transfer. The 2026 FDD includes an Item 19 financial performance representation; review it with your accountant and do not treat it as a forecast for your center. Check Items 3 and 4 for litigation and bankruptcy disclosures.
Multi-Unit Growth
The tiered franchise fee, with lower fees for a second and third center, signals that the franchisor expects many owners to grow. Lenders typically want the first center stable before financing the second and will look at whether clinical leadership can be replicated. Our physical therapy practice expansion financing page covers growth loans. Keep the Area Representative restriction in mind if you are considering a regional role.
Real-World Scenarios
The therapist-owner. A licensed physical therapist with years of outpatient experience opens a new center and treats patients herself. An SBA 7(a) loan covers build-out, equipment and working capital. The lender focuses on her caseload history and credentialing plan.
The investor-owner. A former healthcare executive opens a center and hires a clinic director therapist before opening. The lender reviews the therapist’s credentials, the hiring agreement and a larger working capital reserve.
The conversion. An independent clinic owner converts to the brand to gain the balance programs and systems. A conventional loan refinances existing debt and funds the conversion costs, based on the practice’s track record.
The resale buyer. A buyer acquires an established center from a retiring owner with an SBA loan and a seller note. The lender reviews collections, payer contracts and therapist retention, and the franchisor approves the transfer.
Common Mistakes to Avoid
- Using the wrong Item 7 range for your ownership path
- Ignoring the royalty minimum in early projections
- Underestimating credentialing delays and claims timing
- Signing an Area Representative Agreement and expecting SBA financing for it
- Hiring a therapist late and pushing back first revenue
Our post on physical therapy loan mistakes covers more pitfalls.
Next Steps to Finance Your FYZICAL Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 12, 17, 19 and 20 with your attorney and accountant.
Step 2: Choose your ownership path. Decide between a therapist-owned center, an investor-owned center, a conversion or a resale.
Step 3: Plan clinical leadership. Confirm who will lead patient care and when they will start.
Step 4: Select a site. Compare leased space and owned real estate and their financing implications.
Step 5: Build projections. Include the royalty minimum, credentialing timing and working capital.
Step 6: Gather documents. Prepare tax returns, a personal financial statement, resumes, licenses and proof of funds.
Step 7: Apply for financing. Compare SBA 7(a), SBA 504, conventional and equipment options.
FYZICAL Franchise Loan FAQs
How much does a FYZICAL franchise cost?
Under the 2026 FDD, a new center costs an estimated $125,392 to $481,536 for a licensed therapist owner and $175,392 to $582,036 for an owner who hires a therapist. A conversion is estimated at $75,085 to $191,385.
What is the FYZICAL franchise fee?
$49,000 for the first center, $35,000 for a second and $20,000 for a third, per the franchisor’s summary of its 2026 FDD.
What royalty does FYZICAL charge?
The greater of 6% of gross revenue or a monthly minimum of $1,000 in year one, $2,000 in year two and $3,000 in years three through ten.
Is there a marketing fund fee?
Not currently. The franchisor discloses that it may initiate one at up to an estimated 2% of gross revenue.
Do I need to be a physical therapist?
No. Non-clinical owners can hire a licensed therapist, though costs are higher than for a therapist who treats in the clinic.
Is FYZICAL eligible for SBA loans?
Yes, the brand is listed on the SBA Franchise Directory. Applicants operating under the Area Representative Agreement are not eligible.
Can I convert my existing PT practice?
Yes. The franchisor offers a conversion model with a lower Item 7 range than a new center.
Can a FYZICAL franchise loan include working capital?
Yes. SBA 7(a) loans can include working capital, and a line of credit can help while claims are processed.
Can I buy the building for my center?
Owner-occupied real estate can be financed with SBA 504, SBA 7(a) or conventional real estate loans, subject to approval.
Is there a veterans discount?
Yes. Qualified veterans with majority ownership receive 10% off the first center’s franchise fee.
How many FYZICAL centers are open?
539 as of December 31, 2025, according to the franchisor.
Does the FDD include financial performance data?
Yes, the 2026 FDD includes Item 19. Review it with your advisors and do not treat it as a promise of results.
Final Thoughts
FYZICAL offers more ownership paths than most healthcare franchises, and each one changes the loan. Matching the right Item 7 range to your path, planning clinical leadership, budgeting for the royalty minimum and credentialing timeline, and avoiding SBA-ineligible structures can help you present a stronger FYZICAL franchise loan request.
US Medical Funding helps physical therapy owners finance new clinics, conversions, acquisitions, equipment and real estate. Learn more about our physical therapy practice financing.
