What criteria does Healthsource Chiropractic use to approve suppliers and distributors?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
information (see Item 14).
Approved Products, Distributors and Suppliers
We have developed standards and specifications for the leasehold improvements of your Clinic, the equipment and materials used to perform services at your Clinic, and products authorized for sale at your Clinic. We have approved, and will continue to periodically approve, specifications and/or suppliers and distributors of the above items, services and products, which may include us or our affiliates, that meet our standards and requirements. These specifications include standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations. You must (1) purchase products for sale by your Clinic in the quantities we designate; (2) use those formats, formulae, and containers
for products that we prescribe; and (3) purchase all products, services and other materials only from distributors and other suppliers we have approved.
We may approve a single distributor or other supplier (collectively, "supplier") for any product or service, and may approve a supplier only as to certain products or services. We may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services for any group of Clinics franchised or operated by us. Our approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and other similar criteria, and may be temporary, pending our continued evaluation of the supplier.
You are required to use our designated supplier for site selection assistance and construction project management. You must acquire a site for your Clinic that meets our site selection criteria and that we approve. If you occupy the Clinic according to a commercial lease, the lease must contain terms that we specify.
You must obtain the customer management, accounting, and billing software for the Computer System, (see Items 7 and 11), that you must use in operating your HealthSource Chiropractic franchise from HSWorx, or such other supplier as we may designate in the future.
We currently require our franchisees to enroll in and maintain certain human resources and payroll services provided by Paychex, Inc. The required services consist of payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding. Paychex, Inc. may also provide additional services at the option and cost of the franchisee.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the company has developed standards and specifications for the leasehold improvements of your Clinic, the equipment and materials used to perform services, and products authorized for sale. Healthsource Chiropractic approves suppliers and distributors that meet their standards and requirements, which may include Healthsource Chiropractic or its affiliates. These specifications include standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, and customer relations.
Healthsource Chiropractic may approve a single supplier for any product or service, and approval may be limited to certain products or services. The company may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and other similar criteria, and may be temporary, pending continued evaluation of the supplier.
If a Healthsource Chiropractic franchisee wants to purchase or lease items from an unapproved supplier, they must submit a written request for approval. The proposed supplier may also submit their own request. Healthsource Chiropractic may inspect the supplier's facilities and require product samples for testing, either directly or through an independent certified laboratory. The franchisee or the proposed supplier may be required to pay an evaluation fee to cover the cost of the inspection and testing. Healthsource Chiropractic will approve or disapprove the proposed supplier within 60 days of receiving all required information and reserves the right to re-inspect approved suppliers and revoke approval if they no longer meet the criteria.