What is excluded from 'Gross Revenues' when calculating the Management Fee for a Healthsource Chiropractic clinic?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Management Fee is calculated based on Gross Revenues. Gross Revenues include all revenue and receipts derived from the operation of the clinic. This encompasses amounts received at the clinic or through its business activities, such as fees for clinical services, sales of other services, gift certificate sales, and revenue from product sales, regardless of whether payment is made in cash, check, credit card, debit card, or other credit transactions.

However, the calculation of Gross Revenues for the Management Fee excludes specific items. These exclusions are limited to sales taxes collected from patients that are then paid to the appropriate taxing authority, and any patient refunds and credits that the clinic actually makes. Therefore, these two items are deducted from the total revenue and receipts to arrive at the Gross Revenues figure used to calculate the Management Fee.

For a prospective Healthsource Chiropractic franchisee, understanding this definition is crucial because it directly impacts the amount of the Management Fee paid to the Management Company. By clearly defining what constitutes Gross Revenues and what is excluded, Healthsource Chiropractic aims to provide transparency in its fee structure. Franchisees should ensure they accurately track and report their revenue, sales taxes, and patient refunds to properly calculate the Management Fee and maintain compliance with the franchise agreement.