What criteria define 'Participating Franchisees' in the Healthsource Chiropractic financial performance representation, and how many were there in 2024?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ns funds actually received and collected for the services/product provided to patients of the Qualifying Units. This data is gathered from our HSWorx billing software.
"Participating Franchisees" are the Qualifying Units that returned sufficient cost data to be used in the study. There were 74 Participating Franchises for the 2024 fiscal year.
"Patient" means a customer of a Clinic that converts to a treatment plan, which generally occurs after two initial visits.
"Patient Visit Average" or "PVA" means the number of visits a Patient has divided by the number of Patients. This data is gathered from our HSWorx billing software.
Source: Item 19 — (FDD pages 64–71)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, 'Participating Franchisees' are defined as the 'Qualifying Units' that provided sufficient cost data to be included in the financial study. For the 2024 fiscal year, there were 74 franchises that met this criteria and were classified as Participating Franchisees.
'Qualifying Units' are Healthsource Chiropractic franchise outlets that were open and reported revenue and patient statistics through the HSWorx billing software for the entire 2024 fiscal year. This definition excludes eight clinics whose terms expired, thirteen that opened mid-year, one that was terminated, and four that ceased operations. There were 119 Qualifying Units in 2024.
The distinction between 'Qualifying Units' and 'Participating Franchisees' is important for prospective franchisees. While 119 units qualified based on being open and reporting data, only 74 provided the detailed cost information necessary for calculating gross profit. This means the gross profit figures are based on a subset of the total qualifying franchises. A prospective franchisee should inquire about what type of cost data is required to be a 'Participating Franchisee'.