What is the definition of 'Average Visit Income' (AVI) for a Healthsource Chiropractic franchise, and how is this data collected?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ned these amounts. Your individual results may differ. There is no assurance that you will earn as much**.
For purposes of the financial representation set forth below:
"Average Visit Income" or "AVI" means the average amount of money paid by each Patient for services and products provided by the Clinic franchise divided by the number of office visits for that Patient. This data is gathered from our HSWorx billing software.
"Case Average" or "CA" means the average amount of money paid by each Patient for services and products provided by the Clinic franchise over the Patient's treatment plan. A Patient can have more than one treatment plan over time, either for different conditions or recurrences of the same condition. This data is gathered from our HSWorx billing software.
"Conversion Percentage" means the number of Patients divided by the number of people that attend only one or two visits and do not return for the third visit. This data is gathered from our HSWorx billing software.
"Gross Profit" means Gross Revenues minus royalties paid to us, Ad Fund contributions, Technology Fees paid to us, wages paid to employees other than the franchise owner, rent, utilities and license fees for the HSWorx software.
Source: Item 19 — (FDD pages 64–71)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Average Visit Income (AVI) is defined as the average amount of money paid by each patient for services and products provided by the Healthsource Chiropractic clinic, divided by the number of office visits for that patient. This metric provides insight into how much revenue is generated on average per patient visit. For a prospective franchisee, understanding AVI is crucial for projecting revenue and assessing the financial health of their clinic. A higher AVI suggests that the clinic is either providing more services or products per visit, or charging more for their services.
The 2025 FDD specifies that Healthsource Chiropractic collects this AVI data from its HSWorx billing software. This implies that all Healthsource Chiropractic franchisees are required to use this software, ensuring standardized data collection across all locations. By using a uniform billing system, Healthsource Chiropractic can accurately track and compare the financial performance of different franchise locations. This data-driven approach allows the franchisor to identify best practices and provide targeted support to franchisees who may be underperforming.
In 2024, Healthsource Chiropractic measured the Case Average and Average Visit Income for 119 clinics that met the definition of Qualifying Units. Of these, 58 clinics, or 48.7%, attained or surpassed the average annual AVI figure. The range of AVI for 2024 was $32.65 – $130.68. The AVI varies significantly between the top and bottom quartiles. For example, the AVI for quartile 1 was $97.94, while the AVI for quartile 4 was $50.78. This data can help potential franchisees understand the potential range of AVI they might expect and how their performance could rank compared to other franchisees.