factual

Does the amount HealthSource Chiropractic charges for website and technology services offset internal costs?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

We have contracted with third parties to provide web site design, maintenance, hosting, and search engine optimization for our franchises, and certain technology-related administrative expenses. You will be required to use all such services. You will pay us a fee for such services, and we will pay the third-party providers directly. The amount you pay us may be less or more than the amount we pay to the third-party providers and may be used to offset internal costs related to the stated purposes of this fee.

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, franchisees are required to use third parties contracted by HealthSource Chiropractic for website design, maintenance, hosting, and search engine optimization, as well as certain technology-related administrative expenses. Franchisees will pay a fee to HealthSource Chiropractic for these services, and HealthSource Chiropractic will then pay the third-party providers directly.

The amount that HealthSource Chiropractic charges franchisees for these services may be either less or more than the amount HealthSource Chiropractic pays to the third-party providers. This difference can be used to offset HealthSource Chiropractic's internal costs related to the stated purposes of the fee. This means that HealthSource Chiropractic may use the revenue from these fees to cover its own administrative expenses associated with managing these technology services.

This arrangement is fairly common in franchising, where franchisors often manage certain services centrally to ensure consistency and quality across all locations. The franchisor may mark up the cost of these services to generate revenue or to cover their own administrative costs. Prospective franchisees should inquire about the specific costs of these services and how they compare to market rates to ensure they are receiving fair value.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.