The Joint Corp. completed an asset purchase agreement on December 5, 2025, to sell 22 corporate‑owned or managed chiropractic clinics in the Southeast for $1.5 million. The transaction is expected to close in mid‑December, with the buyers taking over operations under management‑service agreements until lease reassignments are finalized.
The sale is a key element of the company’s “Joint 2.0” strategy, which seeks to divest all corporate clinics and focus exclusively on franchising. By shedding the overhead of owned locations, The Joint aims to improve operating leverage, reduce fixed costs, and accelerate the expansion of its franchise network. The company has set a target to complete the transition to a pure‑play franchisor by the end of 2025.
Financially, the sale comes on the back of a strong Q3 2025 performance. Revenue rose 6% year‑over‑year to $13.4 million, while net income from consolidated operations turned a $3.2 million loss in Q3 2024 into $855,000. Adjusted EBITDA climbed 36% to $3.3 million from $2.4 million in the prior year, reflecting disciplined cost management and a favorable mix of high‑margin franchise revenue. Management has maintained its full‑year 2025 adjusted EBITDA guidance at $10.8 million to $11.8 million, unchanged from the previous forecast, while tightening system‑wide sales guidance to $530 million–$534 million from $530 million–$550 million and narrowing comparable‑sales guidance to –1% to 0% from a low single‑digit increase. The company also announced a restatement of its 2024 and Q1 2025 financials to correct over‑estimated non‑cash impairment charges, which will reduce the 2024 net loss and increase the carrying value of assets held for sale.
The announcement was met with a mixed market reaction. Some investors viewed the divestiture as a positive step toward a leaner, franchise‑centric model, while others expressed caution due to the upcoming restatement and ongoing macroeconomic headwinds such as inflation and labor shortages. Analysts noted that the sale demonstrates confidence in the franchising model, but also highlighted the need for continued cost discipline as the company navigates a volatile economic environment.
Management emphasized that the transaction is part of a broader industry trend toward refranchising, where companies shift from owning locations to focusing on brand development and franchise support. CEO Sanjiv Razdan said the company is “committed to strengthening its core, reigniting growth, and improving profitability through refranchising and other strategic initiatives.” The company’s strong cash position and lack of debt provide flexibility to pursue additional franchise acquisitions and support existing franchisees as the transition progresses.
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