What benefits does a Healthsource Chiropractic developer recognize they will receive?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
he Ad Fund, or to invest any surplus for future use by the Ad Fund. You authorize us to collect for remission to the Ad Fund any advertising monies or credits offered by any supplier to you based upon purchases you make. We will prepare an annual, unaudited statement of monies collected and costs incurred by the Ad Fund and will make it available to you on written request.
You understand and acknowledge that the Ad Fund will be intended to maximize recognition of the Marks and the goodwill and patronage of HealthSource Chiropractic Clinic franchises. Although we will endeavor to use the Ad Fund to develop advertising and marketing materials, and to place advertising in a manner that will benefit all HealthSource Chiropractic Clinic franchises, we undertake no obligation in developing, implementing, or administering advertising or promotional programs to ensure that expenditures by the Ad Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Ad Fund by HealthSource Chiropractic Clinic franchises operating in that geographic area, or that any HealthSource Chiropractic Clinic franchise will benefit directly or in proportion to its contribution to the Ad Fund from the development of advertising and marketing materials or the placement of advertising. HealthSource Chiropractic shall not be a fiduciary to you with respect to the management of the Ad Fund. Except as expressly provided in this Paragraph, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction, or administration of the Ad Fund.
We will have the right to terminate the Ad Fund by giving you 30 days' advance written notice. All unspent monies on date of termination will be divided between HealthSource Chiropractic and the contributing HealthSource Chiropractic Clinic franchisees in proportion to our and their respective contributions.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, franchisees acknowledge that the Ad Fund is intended to maximize recognition of the HealthSource Chiropractic Marks, goodwill, and patronage. While HealthSource Chiropractic aims to use the Ad Fund to develop advertising and marketing materials that benefit all franchisees, there is no guarantee that the expenditures in any specific geographic area will be proportionate to the contributions from franchisees in that area. Additionally, there's no assurance that any individual HealthSource Chiropractic franchise will directly benefit in proportion to their contribution to the Ad Fund.
HealthSource Chiropractic retains sole discretion over the advertising programs financed by the Ad Fund, including creative concepts, materials, endorsements, media usage, and the geographic placement and allocation of programs. The Ad Fund may cover various costs, such as television, radio, magazine, billboard, newspaper, internet, and other media programs, as well as marketing research, website development, search engine optimization, social media, and the employment of advertising agencies.
In addition to the Ad Fund, HealthSource Chiropractic may introduce a future program to provide additional marketing services to Clinic franchises, involving local marketing activities. Participation in this program is optional, and franchisees who choose to participate must pay the specified fee and comply with the requirements outlined in the Operations Manual. HealthSource Chiropractic also contracts with software providers to provide software and support services, and franchisees may be required to sign a service agreement with additional terms and conditions.