factual

What does the Healthsource Chiropractic continuing franchise fee represent compensation for?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.2 Continuing Franchise Fee. You agree to pay us a continuing franchise fee ("Continuing Franchise Fee") equal to seven percent (7%) of the gross revenues (defined below) of the Franchise. The Continuing Franchise Fee will be payable monthly on the day of the month we specify based on the Franchise's gross revenues for the preceding month. The term "gross revenues" shall, for purposes of this Agreement, mean the total of all revenue and receipts derived from the operation of the Franchise, including all amounts received at or away from the site of the Franchise, or through the business the Franchise conducts (such as fees for chiropractic and/or physical therapy care, fees for the sale of any service or product, gift certificate sales, and revenue derived from products sales, whether in cash or by check, credit card, debit card, barter or exchange, or other credit transactions); and excludes only sales taxes collected from customers and paid to the appropriate taxing authority, and any customer refunds and credits the Franchise actually makes. You and we acknowledge and agree that the Continuing Franchise Fee represents compensation paid by you to us for the guidance and assistance we provide and for the use of our Marks, Confidential Information, know-how, access to proprietary software and business systems, and other intellectual property we allow you to use under the terms of this Agreement (including, without limitation, copyrighted and proprietary forms and materials). The Continuing Franchise Fee does not represent payment for the referral of customers or patients to you, and you

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

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the continuing franchise fee represents compensation for specific benefits and resources provided by the company. This fee, set at seven percent (7%) of the franchise's gross revenues, is paid monthly.

The 7% continuing franchise fee covers the guidance and assistance Healthsource Chiropractic provides to its franchisees. It also compensates Healthsource Chiropractic for the franchisee's use of the company's trademarks or "Marks", confidential information, know-how, access to proprietary software and business systems, and other intellectual property. This includes copyrighted and proprietary forms and materials that are part of the Healthsource Chiropractic system.

It is important to note that the continuing franchise fee does not represent payment for the referral of customers or patients to the franchisee. This distinction clarifies that the fee is tied to the ongoing support, resources, and brand usage provided by Healthsource Chiropractic, rather than direct patient referrals.

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.