A New Franchising Model Emerges in the ABA Therapy Market
The Applied Behavior Analysis (ABA) therapy sector is undergoing a significant transformation, driven by the entry of a new franchising model designed to address the growing demand for autism therapy. Between 2017 and 2022, private equity (PE) firms dominated the autism healthcare merger and acquisition landscape, completing 85 percent of transactions in this space—an unprecedented rate within the healthcare industry. These firms have successfully built national networks of ABA therapy centers, aiming to generate stable returns within a relatively short time frame.
However, the surge in private equity ownership of ABA therapy centers has raised concerns about its long-term impact on care quality. While PE-backed ABA centers have demonstrated profitability, their ownership model has been linked to varying levels of regulatory oversight and more flexible provider service standards. Reports suggest that some PE-owned facilities may face challenges in areas such as staffing, supervision, and employee training, leading to higher turnover and potential disruptions in care continuity. For families seeking solutions that prioritize compassion, reliability, and operational excellence, these concerns have sparked a broader conversation about maintaining consistent quality of care in an increasingly commercialized market.
The landscape began to shift in 2015 with the founding of Success On The Spectrum (SOS) by Nichole Daher, which introduced the first ABA therapy franchise model in the United States. SOS offers a unique balance between profitability and high standards of care. The franchise model provides a scalable business approach while ensuring that ethical and operational guidelines, enforced by the franchisor, are adhered to consistently across locations. Owner-operated centers are key to ensuring individualized therapy for the clients they serve. Since its inception, SOS has grown steadily, with more than 50 clinics currently operating across 16 states. The company plans to expand by opening an additional 20 to 30 locations in the coming year, underscoring its commitment to sustainable growth.
This expansion reflects a broader shift within the industry towards greater inclusivity and a more personalized approach to care. SOS and similar franchise models are ushering in a new era of accessibility, prioritizing individualized support while maintaining the necessary operational frameworks to ensure long-term success.
To learn more about the impact of the franchise model on the autism treatment industry, read the full article in Rolling Stone here: Link.