What agreement must a Healthsource Chiropractic developer enter into contemporaneously with the execution of the development agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
As further described below, to operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Clinic. A "PC" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide chiropractic services under local and state laws. In such an arrangement:
- You, as franchisee, will construct or build-out the Clinic for use by the PC.
- The Clinic business will be operated by the PC using the HealthSource name and Marks.
- In addition to signing the Franchise Agreement with us, before you begin operating the Clinic Management Business, you must enter into a management agreement
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, if a franchisee intends to operate a Clinic Management Business, they must enter into a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a "PC" (Professional Corporation) before beginning operations.
This arrangement is specifically designed for situations where the franchisee is not licensed to practice chiropractic care but wishes to own and manage a Healthsource Chiropractic clinic. The "PC" will be a licensed individual or professional corporation authorized to provide chiropractic services under local and state laws. The franchisee, as the Clinic Management Business, will be responsible for constructing or building out the clinic for use by the PC, while the PC operates the clinic business using the Healthsource Chiropractic name and marks.
This structure allows Healthsource Chiropractic to expand its franchise network by including individuals who may not be licensed chiropractors but possess the business acumen to manage a clinic effectively. It also ensures that the chiropractic services are provided by qualified and licensed professionals, maintaining the quality and standards of the Healthsource Chiropractic brand.