Who determines the advertising deemed necessary or appropriate for the Healthsource Chiropractic Ad Fund?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ansfer systems that we designate from time to time, in order that the Franchise may accept customers' credit and debit cards, checks, and other methods of payment. We may require you to obtain such services through us or our affiliates or designated third parties.
HealthSource Chiropractic – 2025 Franchise Agreement
11. ADVERTISING.
11.1 By HealthSource Chiropractic. As stated in Paragraph 6.3a, due to the value of advertising and the importance of promoting the public image of HealthSource Chiropractic Clinic franchises, we may establish, maintain, and administer an Ad Fund to support and pay for national, regional, or local marketing and promotional programs that we deem necessary, desirable, or appropriate, in our sole discretion, to promote the good will and image of all HealthSource Chiropractic Clinic franchises. You will contribute to it the Advertising Fee set forth in Section 6.3a. We agree that any Clinics owned by us or our affiliates will be required to contribute to the Ad Fund on at least the same basis as you do, subject only to limitation under applicable law. HealthSource Chiropractic will be entitled to direct all advertising programs financed by the Ad Fund, with sole discretion over (i) the creative concepts, materials, endorsements, and media used therein, and (ii) the geographic, market, and media placement and allocation of the programs. HealthSource Chiropractic shall have the right to determine, in its sole discretion, the composition of all geographic territories and market areas for the development and implementation of such programs.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic has the sole discretion to determine the advertising deemed necessary or appropriate for the Ad Fund. Specifically, Healthsource Chiropractic may establish, maintain, and administer an Ad Fund to support national, regional, or local marketing and promotional programs that they deem necessary, desirable, or appropriate.
Healthsource Chiropractic directs all advertising programs financed by the Ad Fund, with sole discretion over the creative concepts, materials, endorsements, and media used. They also control the geographic, market, and media placement and allocation of the programs. This means franchisees have limited input regarding how the Ad Fund is spent or the types of advertising campaigns developed.
The Ad Fund can be used to cover various costs related to advertising and promotional activities, including television, radio, magazine, billboard, newspaper, and internet programs. It also covers costs associated with marketing research, website development, search engine optimization, social media, and the employment of advertising agencies. This gives Healthsource Chiropractic broad authority over how the Ad Fund is utilized to promote the Healthsource Chiropractic brand.
While Healthsource Chiropractic aims to maximize recognition of the marks and goodwill of Healthsource Chiropractic Clinic franchises, they do not guarantee that expenditures will be proportionate to contributions from franchises in any specific geographic area. Franchisees should recognize that while the Ad Fund is intended to benefit all franchises, there is no assurance that each franchise will benefit directly or in proportion to their contribution.