What is the Healthsource Chiropractic Development Fee comprised of?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us the initial franchise fee (the "Initial Franchise Fee") set forth below when you sign this Agreement. In recognition of the expenses we incur in furnishing assistance and services to you, you agree that
we will have fully earned the Initial Franchise Fee, and that is due and non-refundable when you sign this Agreement.
Recognizing the value of advertising to the goodwill and public image of Clinic franchises, we may, in our sole discretion, establish, maintain and administer an advertising fund (the "Ad Fund") for such advertising as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Ad Fund in the amount of two percent (2%) of the gross revenues of the Franchise. We will provide you with 30 days' advance notice of the establishment or termination of an Ad Fund and any change in the required contribution. These advertising fees (the "Advertising Fees") will be payable monthly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above. A further description of the Ad Fund and your obligations with respect to advertising and promoting the Franchise is found in Section 11 of this Agreement.
Additionally, you are required to pay the monthly Technology Fee, defined and discussed in Section 11.4, for certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services discussed in Section 10.7.
Technology Fund payment obligations payable by franchisees to HealthSource Chiropractic, LLC. are computed at $199 per month. Technology fund fees are payable monthly.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the document does not specify what the Development Fee is comprised of. The FDD does mention the initial franchise fee, advertising fees, technology fees, and other optional program fees. The initial franchise fee is due upon signing the agreement and is non-refundable, recognizing the expenses Healthsource Chiropractic incurs in providing assistance and services.
The advertising fees are contributed to the Ad Fund, which Healthsource Chiropractic manages for marketing and promotional programs. These fees are 2% of the gross revenues of the franchise. There is also a monthly technology fee of $199.
Prospective franchisees should inquire with Healthsource Chiropractic directly to understand the specific components of the Development Fee, how it is utilized, and what benefits it provides to the franchisee. Understanding the breakdown of this fee is crucial for assessing the overall investment and potential return on investment.