What agreements must the principals/owners of a Healthsource Chiropractic Developer business entity execute?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
," "us," or the "HealthSource Chiropractic." We refer to you as "you," "Franchise Owner" or "Franchisee" and such terms include any person or entity that operates or has an interest in the Franchised Business (defined below). If you are a corporation, partnership or limited liability company, you will notice certain provisions that are applicable to those principal shareholders, partners or members on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Principal Owners".
1.2 The Franchise System.
a. Through the expenditure of considerable time, effort and money, we and our affiliates have devised a system for the establishment and operation of a HealthSource Chiropractic business model that specializes in "progressive rehabilitation," by offering physical therapy and chiropractic services together as a comprehensive solution for pain relief, restoration of function, wellness care and other related services and products (all of which we refer to in this Agreement as the "System"). The System includes procedures, specifications, techniques and procedures that we may designate for operating a chiropractic business. This business model includes a clinic model offering all of our franchised services and products (individually, a "Clinic" or "Clinic," and collectively, the "Clinics" or "Clinics").
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if the franchisee is a corporation, partnership, or limited liability company, the principal shareholders, partners, or members, referred to as "Principal Owners," must adhere to specific provisions within the Franchise Agreement. These provisions are applicable to those individuals on whose business skill, financial capability, and personal character Healthsource Chiropractic relies upon when entering into the agreement.
Upon termination of the agreement, the Principal Owners must immediately comply with the restrictive covenants outlined in the agreement and any Restrictive Covenants Agreement signed by the General Manager, if applicable. This ensures that the individuals who play a key role in the franchise's operations are bound by the terms and conditions even after the agreement ends.
Additionally, if the franchisee proposes to transfer the agreement, the franchise, or its assets, or if any Principal Owners propose to transfer a controlling interest, they must apply to Healthsource Chiropractic for approval. This includes signing any forms and procedures in effect at that time. The person or entity to whom the transfer is proposed must also apply for acceptance as a franchisee, and all required information and documentation must be submitted to evaluate the proposed transfer and confirm that all conditions are met. This process ensures that any transfer of ownership or control meets Healthsource Chiropractic's standards and requirements.