What documents outline the principal obligations of a Healthsource Chiropractic franchisee?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ctic"); | | , as Franchise Owner ("you," "Franchise | | Owner," or "Franchisee"), and, if you are a partnership, corporation, or limited liability company, | | your "Principal Owners" (defined below). |
1. INTRODUCTION.
1.1 Style of Agreement; Common Terms. This Agreement has been written in an informal style in order to make it more easily readable and to be sure that you become thoroughly familiar with all of the important rights and obligations the Agreement covers before you sign it. This Agreement includes several exhibits, all of which are legally binding and are an integral part of the complete Franchise Agreement. In this Agreement, we refer to as "we," "us," or the "HealthSource Chiropractic." We refer to you as "you," "Franchise Owner" or "Franchisee" and such terms include any person or entity that operates or has an interest in the Franchised Business (defined below). If you are a corporation, partnership or limited liability company, you will notice certain provisions that are applicable to those principal shareholders, partners or members on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Principal Owners".
1.2 The Franchise System.
a. Through the expenditure of considerable time, effort and money, we and our affiliates have devised a system for the establishment and operation of a HealthSource Chiropractic business model that specializes in "progressive rehabilitation," by offering physical therapy and chiropractic services together as a comprehensive solution for pain relief, restoration of function, wellness care and other related services and products (all of which we refer to in this Agreement as the "System"). The System includes procedures, specifications, techniques and procedures that we may designate for operating a chiropractic business. This business model includes a clinic model offering all of our franchised services and products (individually, a "Clinic" or "Clinic," and collectively, the "Clinics" or "Clinics"). Subject to an additional fee, we also offer additional programs, products and services as more fully described herein, which additional programs,
products and services may change from time to time. We identify the System by the use of certain trademarks, service marks and other commercial symbols, including the marks "HealthSource Chiropractic," "HS," and "America's Chiropractor" and certain associated designs, artwork and logos, which we may change or add to from time to time (the "Marks").
- b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a HealthSource Chiropractic Clinic in accordance with the System in a specified geographic territory.
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the principal obligations of a franchisee are primarily detailed within the franchise agreement and its exhibits. The franchise agreement itself is written in an informal style to ensure franchisees are familiar with their rights and obligations before signing. This agreement includes legally binding exhibits that are integral to the complete franchise agreement.
Item 15 of the FDD specifies that the Healthsource Chiropractic Clinic franchise must operate according to the System Standards, which include the franchisor's standards, specifications, operating procedures, and rules. Unless the franchisee is approved to employ an on-site general manager, the franchisee (if an individual) or a principal owner, officer, director, or employee approved by Healthsource Chiropractic (if a legal entity) must actively participate in the franchise's operation and devote sufficient time for its efficient operation. If a general manager is employed, they must be approved by Healthsource Chiropractic and complete the initial training program.
Additionally, the Development Agreement, attached as Exhibit C, outlines the schedule and defined period for opening and operating multiple clinics within a mutually agreed-upon geographical area for franchisees with multi-unit development rights. The franchisee will sign a Franchise Agreement for the initial Clinic they commit to develop within their Development Area at the same time they sign their Development Agreement, and will eventually need to sign the then-current form of franchise agreement for each of the Clinics they open under the Development Schedule. These agreements collectively define the obligations related to operating the franchise, maintaining standards, and managing the business effectively.