Does the Healthsource Chiropractic franchisee have sole responsibility for operating their franchise in compliance with all applicable laws, rules, and regulations relating to the practice of chiropractic medicine and physical therapy?
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 the 2025 Healthsource Chiropractic FDD, the franchisee has sole responsibility for operating their franchise in compliance with all applicable laws, rules, and regulations relating to the practice of chiropractic medicine and physical therapy. This includes, but is not limited to, 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, restrictions on self-referrals, medical benefit payment systems, advertisement of chiropractic and related medical services, and patient privacy. These are referred to as the "Professional Laws" in the agreement.
Healthsource Chiropractic relies on the franchisee's representations and warranties when granting the franchise. The franchisee must operate in compliance with all Professional Laws during the term of the agreement. If any changes to these laws occur that would cause the franchise's operation to be in violation, the franchisee must immediately inform Healthsource Chiropractic and propose a method to comply with the updated laws, potentially including entering into a Management Agreement.
Furthermore, the franchisee represents that they have independently investigated the Professional Laws applicable to the practice of chiropractic medicine, physical therapy, and the operation of their franchise in the Protected Territory. They also confirm that they are permitted to operate under these Professional Laws. This places a significant burden on the franchisee to stay informed and compliant with all relevant regulations, as failure to do so could result in legal and financial repercussions.