Can Healthsource Chiropractic or its affiliates be designated as approved or exclusive suppliers?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We may designate us and/or our affiliates as an approved supplier, or the only approved supplier, from which you may or must lease or purchase certain products or services in developing and operating your HealthSource Chiropractic franchise. We and our affiliates may derive revenue from these sales and may sell these items at prices exceeding our or their costs in order to make a profit on the sale.
We reserve the right to designate us and/or our affiliates as approved suppliers, or the exclusive supplier(s), from whom you may purchase or lease certain other categories of products, services, and equipment.
We are currently not an approved supplier for any other product, service, or equipment.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic or its affiliates can be designated as approved or exclusive suppliers for certain products or services. Healthsource Chiropractic reserves the right to designate itself and its affiliates as approved or exclusive suppliers from whom franchisees may be required to lease or purchase specific products, services, and equipment. Healthsource Chiropractic may profit from these sales, potentially selling items at prices exceeding their costs. Currently, Healthsource Chiropractic is not an approved supplier for any other product, service, or equipment.
Franchisees are generally required to purchase or lease real estate, goods, and services according to Healthsource Chiropractic's specifications and from approved suppliers to remain eligible for franchise renewal. Failure to comply with these requirements may result in ineligibility for renewal or even termination of the franchise agreement. Healthsource Chiropractic also negotiates price terms and other purchase arrangements with suppliers for some items, including clothing, marketing materials, services, supplements, pillows, and various physical therapy supplies and equipment.
Healthsource Chiropractic also benefits from relationships with various approved suppliers through rebates. For example, Pivotal Health Solutions (chiropractic equipment) pays Healthsource Chiropractic a 5% rebate on franchisee purchases. OpenEdge Payments LLC (merchant/credit card services) pays a rebate of 50% of the difference between their fee revenues from franchise transactions and their expenses. These rebates are used to offset costs associated with Healthsource Chiropractic's annual multi-day conference.