How does Healthsource Chiropractic define 'Quartile' in the context of its financial performance representation?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
"Qualifying Units" are Clinic franchise outlets that have opened and have reported revenues and patient statistics through the HSWorx billing software for the entire 2024 fiscal year, which requirement excludes eight Clinic franchises whose term expired, thirteen Clinic franchises that opened mid-year, one clinic franchise that was terminated and four Clinic franchises that ceased operations. There were 119 Qualifying Units for the 2024 fiscal year.
"Quartile" means a specified ¼ (25%) of the Qualifying Units, determined based on the relative performance of the Clinic Franchises. Quartile 1 includes the highest performing Clinic franchises while Quartile 4 includes the lowest performing Clinic franchises as determined by the performance measures being presented.
Source: Item 19 — (FDD pages 64–71)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a 'Quartile' represents a specific quarter (25%) of the 'Qualifying Units,' which are the Clinic franchise outlets that have been open and reporting revenue and patient statistics through the HSWorx billing software for the entire 2024 fiscal year. The financial performance of each Clinic franchise determines its quartile assignment.
Healthsource Chiropractic uses quartiles to categorize and compare the financial performance of its franchises. Quartile 1 includes the highest-performing clinics, while Quartile 4 contains the lowest-performing clinics, based on the performance measures being presented. This allows prospective franchisees to see the range of financial outcomes achieved by different segments of the franchise system.
For example, Healthsource Chiropractic provides data on Gross Revenues, Gross Profit, Conversion Percentage, Patient Visit Average, Case Average, and Average Visit Income, broken down by quartile. This detailed breakdown helps potential franchisees understand the spectrum of possible financial results and the factors that contribute to high or low performance within the Healthsource Chiropractic system. The FDD indicates that for the 2024 fiscal year, there were 119 Qualifying Units, meaning each quartile would ideally consist of approximately 30 clinics, although Quartile 4 had 29 clinics.