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When is a Healthsource Chiropractic 'Clinic Management Business' franchise not necessary?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchised Business"). You may purchase and operate your Franchise as a new, start-up Clinic (a "Start-up Clinic"), or may convert an existing chiropractic practice to a HealthSource Chiropractic Clinic (a "Conversion Clinic").

  • 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.

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a 'Clinic Management Business' franchise is not necessary in states that permit non-licensed persons to own and operate chiropractic practices. However, Healthsource Chiropractic may still offer this type of franchise under certain circumstances even in those states.

In states where non-licensed individuals are prohibited from owning or operating chiropractic practices, Healthsource Chiropractic may offer a Clinic Management Business franchise. This allows individuals who are not licensed to practice chiropractic care to invest in and manage a Healthsource Chiropractic clinic by partnering with a licensed chiropractor or a professional corporation (PC). The franchisee, as the Clinic Management Business, is responsible for constructing or building out the clinic, while the PC operates the clinic using the Healthsource Chiropractic name and system.

To operate a Clinic Management Business, the franchisee must enter into a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with the PC. This arrangement ensures that the clinic adheres to the Healthsource Chiropractic system while complying with local and state laws regarding the provision of chiropractic services. The Management Agreement outlines the responsibilities of both the Management Company (franchisee) and the Licensed Provider (PC) in providing management, administrative, chiropractic, physical therapy, and wellness services.

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.