Is a Healthsource Chiropractic franchisee responsible for ensuring the Management Agreement complies with all applicable laws in the state where the clinic is located?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's chiropractic practice and its delivery of chiropractic services and related services and products to patients at a Clinic, consistent with all applicable laws and regulations. Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules and regulations of the state in which the Clinic will be located.
- You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in compliance with all applicable laws, rules and regulations of the state in which the Clinic is located. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
- We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Clinic is located.
- The PC will employ and control the chiropractors, physical therapists and other personnel who will provide the actual chiropractic and related services required to be delivered at and through the Clinic. You may not provide any actual chiropractic care or any other professional services that require licensing or certification, nor will you supervise, direct, control or try to influence the exercise of professional and/or medical judgment, treatment protocols, employee decisions, clinical advice, clinical training, clinical chiropractic care or relationships with patients, by the PC or any of its employees or agents.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee operates a Clinic Management Business, they must enter into a Management Agreement with a PC (Professional Corporation) that will own and operate the clinic. Healthsource Chiropractic provides a general form of this agreement, but the final agreement must be approved by Healthsource Chiropractic and adhere to all state and local laws where the clinic is located.
While Healthsource Chiropractic may offer assistance in preparing the Management Agreement, the franchisee is ultimately responsible for ensuring the agreement complies with all applicable laws, rules, and regulations in the state where the clinic operates. The franchisee must secure written approval from Healthsource Chiropractic for the final Management Agreement before entering into it with the PC. A Management Agreement between the franchisee and the PC must be in effect at all times during the operation of the franchised business and the initial term of the agreement.
Healthsource Chiropractic must approve the PC and its owners, but the franchisee is responsible for ensuring the PC complies with all applicable laws, rules, and regulations of the state in which the clinic is located. The PC will employ and control the chiropractors, physical therapists, and other personnel who will provide the actual chiropractic and related services at the clinic. The franchisee cannot provide any actual chiropractic care or any other professional services that require licensing or certification, nor can they supervise, direct, control, or try to influence the exercise of professional and/or medical judgment, treatment protocols, employee decisions, clinical advice, clinical training, clinical chiropractic care, or relationships with patients, by the PC or any of its employees or agents.
This arrangement is common in states where non-licensed individuals or entities are not permitted to own or operate chiropractic practices. The franchisee's role is primarily administrative and managerial, while the PC maintains control over the clinical aspects of the practice. The franchisee bears the responsibility of ensuring that all aspects of the Management Agreement and the PC's operations comply with state and local laws, which may require consulting with legal counsel experienced in healthcare regulations.