Can Healthsource Chiropractic charge franchisees for marketing materials?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We may establish, maintain, and administer an Ad Fund. As available, we will provide you with digital copies of our marketing materials via our intranet. (Franchise Agreement – Section 11.1). The Ad Fund will be used to support and pay for marketing programs we deem necessary, desirable, or appropriate to promote the services and products offered by your and other Clinics. Also, we may, at our discretion, charge you for hard or digital copies of marketing materials.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 34–44)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic may charge franchisees for marketing materials. Specifically, while Healthsource Chiropractic provides digital copies of marketing materials via its intranet, it retains the discretion to charge franchisees for hard or digital copies of these materials. This means that franchisees may incur additional costs for accessing marketing materials in physical or certain digital formats, depending on Healthsource Chiropractic's decision.
In addition to potentially paying for marketing materials, Healthsource Chiropractic franchisees are required to spend a minimum amount on local advertising, promotion, and marketing. This minimum expenditure is the greater of $3,000 or 5% of the clinic's gross revenues each month. This mandatory spending ensures that franchisees actively promote their local Healthsource Chiropractic clinics, but it also represents a significant ongoing expense.
Healthsource Chiropractic also has the right to create advertising funds (Ad Funds) for its Clinic franchises to support national, regional, and local advertising and promotional programs. Franchisees are required to contribute 2% of their gross revenues to the Ad Fund, and Healthsource Chiropractic has the right to increase or decrease this contribution with 30 days' written notice. This mandatory contribution to the Ad Fund, along with the local advertising spending requirement and potential charges for marketing materials, highlights the importance of budgeting for marketing expenses when considering a Healthsource Chiropractic franchise.