How does Healthsource Chiropractic define a 'Licensed Provider' for the purposes of a Clinic Management Business?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Healthsource Chiropractic's 2025 Franchise Disclosure Document, a "Licensed Provider" in the context of a Clinic Management Business is defined as one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company. This entity must be duly authorized to provide chiropractic services under local and state laws. This definition is important because, in certain states where non-licensed individuals or entities are not permitted to own or operate chiropractic practices, a Clinic Management Business structure is used, requiring a Management Agreement with such a Licensed Provider.
For prospective Healthsource Chiropractic franchisees, this means that if they are not licensed to practice chiropractic care but wish to own and operate a clinic, they must establish a Clinic Management Business and contract with a Licensed Provider who will oversee the clinical operations. The Management Agreement between the franchisee and the Licensed Provider must be approved by Healthsource Chiropractic and comply with all applicable state and local laws. Exhibit M of the Franchise Disclosure Document contains a general form of a Management Agreement to serve as a starting point.
This arrangement allows individuals with business acumen but without chiropractic licenses to invest in and manage a Healthsource Chiropractic clinic, while ensuring that patient care is provided by qualified and licensed professionals. It is crucial for potential franchisees to understand the legal requirements and restrictions in their specific state regarding the ownership and operation of chiropractic practices, as these regulations will dictate whether a Clinic Management Business structure is necessary. Prospective franchisees should consult with legal counsel to ensure full compliance with all applicable laws and regulations.