What does the computer and billing system estimate include for a HealthSource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) This estimate includes the cost of obtaining our required computer and billing system.
See Items 8 and 11 for additional information.
- (16) This estimate includes 3-months' lease and maintenance fees for our required computer and billing system as described in Items 8 and 11.
The low estimate is based on the usual monthly fee charged by HSWorx. in the amount of $598 per month.
The higher estimate is based on whether you decide to use optional products or services from HSWorx.
These amounts include up to 5 seats and is subject to the number of claims processed and other services provided by HSWorx.
If you do not return the ACH draft information to HSWorx, Inc. within seven (7) days of corporate training, HSWorx will charge you $698.00 per month until you return the ACH information to them.
See Franchise Agreement – Exhibit 4 for additional information.
This estimate does not include fees we will charge you if your franchise is not "live" on the software system within two months post training.
If you are a conversion franchise and are not "live" on the software system within two months of training, a $500 per month fee will be assessed.
After month six, the fee will increase to $1,000 starting month seven.
- (17) This estimate includes your payment to us for website design, maintenance, hosting, and search engine optimization, and certain technology-related administrative expenses for the first three months of operation.
See Item 8 for additional information.
| Type of | Conversion Clinic | Start-up | Method of | When Due | To Whom |
|---|---|---|---|---|---|
| Expenditure | Clinic | Payment | Payment Is To Be Made | ||
| Computers and | $0 to $3,500 | $3,200 to $3,500 | As agreed | Before | Suppliers |
| Installation (10) | opening | ||||
| 3-Months’ Billing | $1,794 to $2,100 | $1,794 to $2,100 | As agreed | As agreed | Suppliers |
| Software Lease (16) | |||||
| Technology Fee – 3 | $597 to $597 | $597 to $597 | As agreed | Per month | See note 17 |
| months (17) |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–28)
What This Means (2025 FDD)
According to the 2025 HealthSource Chiropractic FDD, the estimated initial investment includes costs associated with the computer and billing system. For a start-up clinic, this ranges from $3,200 to $3,500, while for a conversion clinic, the range is $0 to $3,500. This estimate covers the cost of obtaining the required computer and billing system. Additionally, the initial investment includes a 3-month lease and maintenance fees for the computer and billing system, with a low estimate of $598 per month based on HSWorx's usual monthly fee. The higher estimate accounts for optional products or services from HSWorx, with the amounts covering up to 5 seats and being subject to the number of claims processed and other services provided.
For a HealthSource Chiropractic franchisee, understanding these costs is crucial for budgeting and financial planning. The initial investment for the computer and billing system is a one-time expense, while the 3-month lease and maintenance fees represent ongoing operational costs. Franchisees should also be aware of the potential for higher monthly fees if they choose to utilize optional products or services from HSWorx. Failing to provide ACH draft information to HSWorx within seven days of corporate training will result in a charge of $698 per month until the information is provided.
It is important to note that the FDD also mentions fees if the franchise is not "live" on the software system within two months post-training. For conversion franchises, this fee is $500 per month, increasing to $1,000 per month after the sixth month. Franchisees should ensure they are fully operational on the software system within the specified timeframe to avoid these additional costs. Prospective franchisees should carefully review Items 8 and 11 of the FDD for more detailed information on the computer and billing system requirements and associated fees.
The FDD also specifies that the technology fee estimate includes payment for website design, maintenance, hosting, search engine optimization, and certain technology-related administrative expenses for the first three months of operation. This is separate from the computer and billing system costs. Franchisees should consider all these technology-related expenses when evaluating the overall financial investment required to start and operate a HealthSource Chiropractic franchise.