Where can a Healthsource Chiropractic franchisee find a further description of the Ad Fund and advertising obligations?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. 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.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a more detailed explanation of the Ad Fund and a franchisee's advertising responsibilities can be found in Section 11 of the Franchise Agreement. Paragraph 6.3a mentions the potential establishment of an advertising fund where franchisees contribute 2% of their gross revenues.
Section 11 elaborates on Healthsource Chiropractic's right to establish, maintain, and administer the Ad Fund for marketing and promotional programs. The franchisor has sole discretion over the advertising programs, including creative concepts, media usage, and market placement.
The Ad Fund can cover various costs, such as preparing advertising materials for different media, conducting marketing research, website development, and employing marketing agencies. While Healthsource Chiropractic aims to maximize brand recognition, there's no guarantee that expenditures will be proportionate to individual franchisee contributions or that each franchise will directly benefit in proportion to their contribution. The franchisor will provide an annual, unaudited statement of the Ad Fund's finances upon written request.