What is a 'Clinic Management Business' in the context of a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide chiropractic care, and are willing to undertake the investment and effort to own and operate a business that will manage a Start-Up or Conversion Clinic under the System; we refer to these businesses as "Clinic Management Businesses." For example, certain states do not permit non-licensed persons to own and/or operate chiropractic practices, but some states do. In states that do not permit non-licensed persons to own or operate chiropractic practices, a Clinic Management Business may be offered. In states that do permit non-licensed persons to own and operate chiropractic practices, a Clinic Management Business Franchise is not necessary, but may be offered by us under certain circumstances.
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 Franchise Disclosure Document, a 'Clinic Management Business' refers to a franchise offered to individuals or entities who may not be licensed to practice chiropractic care but are qualified to own and operate a business that manages a HealthSource Chiropractic clinic. This arrangement is particularly relevant in states where non-licensed individuals are restricted from owning or operating chiropractic practices. In these cases, Healthsource Chiropractic may offer a Clinic Management Business franchise. However, even in states where it is not required, Healthsource Chiropractic may still offer this type of franchise under certain circumstances.
To operate a Clinic Management Business, the franchisee must enter into a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a 'PC' (Professional Corporation). The PC will consist of licensed individuals or a professional corporation authorized to provide chiropractic services under local and state laws. The franchisee, as the owner of the Clinic Management Business, is responsible for constructing or building out the clinic for use by the PC. The PC then operates the clinic using the Healthsource Chiropractic name and marks.
This structure allows Healthsource Chiropractic to expand its franchise network while complying with varying state regulations regarding the ownership and operation of chiropractic practices. It also provides an opportunity for individuals with business acumen but without chiropractic licenses to invest in and manage a Healthsource Chiropractic clinic. However, it's crucial for prospective franchisees to understand the legal and contractual obligations involved in this arrangement, including the need to establish a management agreement with a qualified PC and the division of responsibilities between the franchisee and the PC.