What is a 'Clinic Management Business' under the Healthsource Chiropractic franchise system?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. To operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Clinic. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit M, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Clinic Management Business will be located. A "Licensed Provider" 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.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, a 'Clinic Management Business' refers to a franchise offered to individuals or legal entities who meet the franchisor's qualifications but are not licensed to practice or provide chiropractic care. These franchisees undertake the investment and effort to own and operate a business that manages either a Start-Up Clinic or a Conversion Clinic under the Healthsource Chiropractic system.
Healthsource Chiropractic may offer this type of franchise in certain cases where permitted by law. For example, some states do not allow non-licensed individuals to own and/or operate chiropractic practices, while others do. In states where such restrictions exist, a Clinic Management Business may be offered as a viable option. However, in states that permit non-licensed individuals to own and operate chiropractic practices, a Clinic Management Business franchise is not necessary but may still be offered under certain circumstances.
To operate a Healthsource Chiropractic Clinic Management Business, the franchisee must enter into a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a 'Licensed Provider.' This Licensed Provider will own and operate the clinic and must be one or more licensed individuals or a professional corporation or similar entity authorized to provide chiropractic services under local and state laws. The Management Agreement must be approved by Healthsource Chiropractic and comply with all applicable laws, rules, and regulations of the state in which the business is located. A general form of a Management Agreement is included as an exhibit in the FDD to serve as a starting point.