Co-founder of Massage Envy, Joint Chiropractic takes similar approach to acupuncture chain...

[massage]

Georgann Yara Special for The Republic

Published 9:00 AM EDT Apr 11, 2019

He knew the model worked for the massage, waxing and blow-dry-bar industries. So, Matt Hale thought, why not take it into a health facet that was deemed out of reach for the masses?

The CEO and co-founder of Modern Acupuncture did that when he and his business partners launched the acupuncture franchise in 2016 with a single location in Scottsdale.

The instinct was on point. Today, there are 43 Modern Acupuncture locations in 14 states, with six Valley locations in Scottsdale, Phoenix, Gilbert, Mesa and Glendale.

There are licenses issued in 12 additional states with 45 new clinics to open this year, Hale said. The goal is to have 800 over the next seven years, with possible expansion into Canada and Europe.

The company generates $8 million in gross revenue with no debt, according to company data.

How it works: After a 20-minute relaxation period in the Zen Den on zero gravity chairs with relaxing music and images on screens, patients are then given a tailored acupuncture treatment. Clothes are kept on, with sleeves and pant legs rolled to expose areas to be treated.

New members fill out a form that outlines their symptoms or what they hope to be accomplished trough acupuncture. Treatments range from body to facial acupuncture that the company says addresses wrinkles and keeps skin fresh.

The first visit is usually 30-45 minutes, with following visits about 30 minutes. Walk-ins are encouraged but appointments can be scheduled.

Prices range from $69 for a monthly membership that includes two visits a month with $20-$30 for each additional treatment, to an unlimited annual package for $1,195. Hale said that about 400 of the unlimited memberships have been sold nationwide.

Making a 'spa-like environment' accessible


Envisioning the business model’s success wasn’t purely analytical. Hale saw it work with his previous companies Massage Envy and the Joint Chiropractic, both of which he co-founded. These broke the traditional barriers that stood between prospective clients and specialized services by being in malls and shopping centers anchored by a large grocery or department store or a popular chain store like Starbucks.

“We looked for opportunities to make a spa-like environment and make it accessible. … Taking what can be conceived as unapproachable into something that’s approachable,” said Hale, who founded Modern Acupuncture with Mike Nesteby, Steve Gubernick and Chad Everts.

But more needed to be done to overcome other barriers. Much of the mainstream public continued to hold antiquated perceptions about the treatment that is 2,500 years old but relatively new in the U.S.

Offering complimentary visits helped. So did education and easing of fears. Once people understood the needle was more like a gentle pin the circumference of a single hair and that it stimulates healing through blood flow and increase in oxygen, they were willing to give it a try, Hale said.

Marsha Shagena is one of them. She lives near one of the Phoenix clinics and was curious but feared the needles would be painful. But hearing that it would provide drug-free relief for symptoms like physical tightness and insomnia, she took a chance.

“I thought the needles would hurt. But after my first session, I was pain-free. I got all nervous for nothing,” said Shagena, who has gone for body and facial treatments twice a week since March.

After getting regular treatments, Shagena said the anxiety and tightness in her neck and shoulders are gone. She sleeps much better and what she called “deep smile lines” on her face have plumped and disappeared.

A former smoker of 40 years, Shagena quit a few weeks before getting her first acupuncture treatment. She said it has helped calm cigarette cravings and has been vital to her being able to keep from lighting up, something she thought would be impossible.

Shagena’s oldest daughter has also become a patient and Shagena’s positive results have convinced her sister to try it.

“The environment itself is like a spa and the staff is so friendly from the minute you walk in,” she said. “It really works.”

Making acupuncture friendly

The idea of being a friendly delivery system of acupuncture came when Hale and Everts were approached by Gubernick, a Joint franchisee who started referring his chiropractic patients to acupuncturists to complement his treatments. A chiropractor, Gubernick saw phenomenal results when the two crafts were paired, Hale said.

Hale’s research showed that acupuncture was the fastest-growing medicine globally and in the U.S. It’s been used to treat conditions ranging from stress and anxiety to chronic pain and menstrual cramps.

Acupuncture is also part of a global complementary and alternative medicine market that’s expected to generate $211 billion annually by 2026, according to market research firm Grand View Research.

Word spread quickly among Joint franchisees. The buzz created a client base that was raring to go before the first location opened, Hale said.

Hale said he receives feedback from patients who have experienced relief from whatever has ailed them for years or have been able to reduce or completely get off prescription medication.

“My favorite part is going to clinics and talking to patients and hearing about amazing the treatment is and how it’s changed their life,” he said.

Modern Acupuncture, corporate


WHERE: 14362 N. Frank Lloyd Wright Blvd., Suite 2300, Scottsdale.

EMPLOYEES: 12

INTERESTING STAT: The acupuncture industry is projected to experience a compound annual growth rate of 14.5 percent from 2018 to 2023, according to Market Research Future.

DETAILS: 480-999-5505, modernacupuncture.com

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