Founders Step Away as New QC Kinetix CEO Bolsters Team and Prepares for Global Expansion | Franchise News
It was on the ‘roadmap’ for Scott Hoots to take over QC Kinetix after joining the regenerative medicine company in October 2020 as COO – and the only person on the management team with franchise experience. .
“I work with three owners who are very enterprising and they have a lot of projects that they would like to tackle,” Hoots said, “so we always knew there would be a date that they wanted to start focusing on. other projects outside of QC Kinetix, and that date happened to be earlier this year.”
Justin Crowell started QC Kinetix in Charleston, South Carolina in 2017 with Tyler Vail and Dr. Richard Shaffer as a regenerative medicine concept, providing treatments for various musculoskeletal and joint pain issues as an alternative to addictive painkillers and surgery.
They started the franchise in 2020 and grew quickly. With the help of Hoots, QC Kinetix’s system-wide sales reached $8 million in 2020 across nine corporate clinics and grew to $27 million in 2021 with the addition of franchises, a Crowell told the Franchise Times earlier this year.
Today, the brand has 112 open clinics, all built and opened in 15 months, and has signed development agreements for more than 500 sites. But Hoots takes much more pride in making sure those deals come to fruition than the sales process itself.
“So many companies love sales, they love selling and talking about development and all that, but the most important thing for us is that we help franchise owners open up and help them succeed,” said he declared.
The three founders will cease to manage the business day-to-day, but will continue to serve on the board of directors, and Dr. Schaffer will continue to lead the medical advisory board, which will focus on research, development and training of new treatments. QC Kinetix also recently hired Dr. Kenneth Barnes as Director of Research and Development.
New therapy for hair loss will be rolled out by the end of 2022, Hoots said, and innovative treatments for low testosterone and sexual dysfunction will be added over the next two years.
Hoots’ top priority as CEO is investing in people to support franchise owners, which has been the brand’s biggest challenge. “We did this from the very beginning,” he said, but found that not everyone was doing well in “an environment where growth is so fast, so we were challenged by turnover. and finding the right people to thrive in that environment.”
Hoots has tapped Alex Zai, who has 34 years of franchising experience, to replace him as chief operating officer. Zai started as a franchisee of Pak Mail Centers of America and worked his way up to CEO, so “he has a unique perspective on both sides of the relationship, franchisor and franchisee,” Hoots noted.
Marc Weiss is the new chief financial officer of QC Kinetix, who is responsible for analyzing and improving profitability at the unit level, and Todd Maddocks has been appointed general counsel.
Hoots is also considering international expansion, starting with the UK, New Zealand, Australia, Spain and Sweden. One of the main reasons Hoots and his team identified these five countries is that “there is already an established acceptance of regenerative medicine in these countries, so we’re not reinventing the wheel,” he said. .
“While the regenerative medicine industry is large and growing, it is still relatively unknown to most people, so we are spending a lot of money and dedicating a lot of resources to help move the whole needle for the industry.”
The global regenerative medicine industry is expected to reach $83.2 billion by 2030, according to a report by Allied Market Research, largely due to a greater focus on improving health during the pandemic.
Hoots hopes to make major progress in global expansion by the end of 2022, but noted that his team is still assessing the markets and has “no one on the horn yet.”
Part of its growth strategy is to continue to build credibility by supporting Dr. Barnes in publishing studies that support the use of regenerative medicine for musculoskeletal issues, hair growth and other areas. , Hoots said.
“One of the benefits of expanding using the franchise model is that with the large patient footprint, we can do some really impressive studies to help move the needle in the industry,” Hoots added.
QC Kinetix clinics are typically between 1,700 and 2,500 square feet and are located in office or Class A medical premises. The initial investment range is $159,030 to $300,230.