When are the Advertising Fees for a Healthsource Chiropractic franchise payable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Recognizing the value of advertising to the goodwill and public image of Clinic franchises, we may, in our sole discretion, establish, maintain and administer an advertising fund (the "Ad Fund") for such advertising as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Ad Fund in the amount of two percent (2%) of the gross revenues of the Franchise. We will provide you with 30 days' advance notice of the establishment or termination of an Ad Fund and any change in the required contribution. These advertising fees (the "Advertising Fees") will be payable monthly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Ad Fund, which is set at two percent (2%) of the gross revenues of the franchise. These advertising fees are payable monthly, at the same time as the Continuing Franchise Fees. Healthsource Chiropractic will provide franchisees with 30 days' advance notice of the establishment or termination of the Ad Fund, as well as any changes to the required contribution amount.
This means that as a Healthsource Chiropractic franchisee, you will need to budget for this ongoing advertising expense, which is directly tied to your revenue. It is important to factor in this 2% when projecting your monthly expenses and profitability. The franchisor retains the discretion to adjust the advertising contribution, but they must provide a 30-day notice before any changes take effect.
It is also important to note that Healthsource Chiropractic has the right to apply any payments received from a franchisee to past due debts, including advertising fees, regardless of how the franchisee designates the payment. This could impact a franchisee who is behind on payments and intends for a payment to cover current advertising fees. Franchisees should maintain open communication with Healthsource Chiropractic regarding payment allocations to avoid potential issues.