What is a Healthsource Chiropractic franchisee required to confirm regarding the Professional Laws?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of chiropractic medicine and physical therapy, including without limitation: licensure, marketing and advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and clinicians, restrictions on self-referrals, medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations, advertisement of chiropractic and related medical services, and patient privacy (the "Professional Laws"). You represent and warrant that you have independently investigated the Professional Laws applicable to the practice of chiropractic medicine, physical therapy and the operation of your Franchise in the Protected Territory, and that you have confirmed under the Professional Laws that you are permitted to
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees must confirm they have independently investigated and are permitted to operate under the Professional Laws applicable to chiropractic medicine, physical therapy, and the operation of their franchise in their protected territory. These Professional Laws encompass a wide range of regulations, including licensure, marketing and advertising, the use of medical equipment, dietary supplements, fee splitting, anti-kickback prohibitions, self-referral restrictions, medical benefit payment systems, advertising of services, and patient privacy.
This requirement places a significant responsibility on the franchisee to ensure full compliance with all relevant laws and regulations. It is not Healthsource Chiropractic's responsibility to ensure the franchisee is compliant. The franchisee must conduct their own due diligence to understand the legal landscape in their specific territory. This includes understanding state and local regulations, which can vary significantly.
The franchisee's representation and warranty confirm they have the right to operate the franchise under these laws. Failure to comply with these laws could result in legal and financial repercussions for the franchisee, as well as potential damage to the Healthsource Chiropractic brand. Therefore, prospective franchisees should consult with legal and professional advisors to fully understand their obligations before signing the franchise agreement.
Healthsource Chiropractic also requires the franchisee to notify them within 5 days of any action, suit, or proceeding, or any notice of violation of any law, ordinance, or regulation relating to health or safety that may adversely affect the franchise's operation, financial condition, or reputation. This includes any claims of malpractice brought against the franchisee or any professional affiliated with them.