For Healthsource Chiropractic franchises, what items must be purchased or leased only from approved suppliers or designees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
UCTS AND SERVICES**
Lease and Purchase Specifications and Requirements
You must lease or purchase your Clinic location, leasehold improvements, computer and office equipment (including cash registers and computer hardware and software), x-ray equipment, fixtures, furnishings and decor, signage, insurance, inventory (including, without limitation, dietary supplements), clothing, branding, advertising and marketing materials and services, grand opening kit, training, supplies, programs and other items and services under our specifications as set forth in our Operations Manual for Clinics – see Items 7 and 11. These specifications include standards for appearance, delivery, performance, quality control, and/or design.
You must lease or purchase your leasehold improvements, x-ray equipment, computer and billing system, equipment, inventory, marketing materials, supplies, services, products, and other items only from suppliers or designees approved by us. Our Operations Manual lists our approved suppliers. There may be items for which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Clinic on your behalf (see Item 6).
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are required to purchase or lease several items from approved suppliers or designees. These include the Clinic location itself, leasehold improvements, computer and office equipment (including cash registers and computer hardware and software), x-ray equipment, fixtures, furnishings and decor, signage, insurance, inventory (including dietary supplements), clothing, branding, advertising and marketing materials and services, grand opening kit, training, supplies, programs and other items and services under the specifications set forth in the Operations Manual.
Specifically, Healthsource Chiropractic franchisees must obtain customer management, accounting, and billing software for the Computer System from HSWorx, or another designated supplier. Franchisees are also required to use the designated supplier for site selection assistance and construction project management. Additionally, franchisees must enroll in and maintain certain human resources and payroll services provided by Paychex, Inc., including payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding.
Healthsource Chiropractic estimates that expenditures in leasing or purchasing real estate, equipment, fixtures, products, marketing materials, services, and computer hardware and software from approved suppliers will represent approximately 50% of the franchisee's total purchases and expenses in establishing and operating the Healthsource Chiropractic franchise. Virtually all goods and services that franchisees must lease or purchase in establishing and operating their franchise must comply with Healthsource Chiropractic's standards and specifications. The Operations Manual lists approved suppliers, and there may be items for which Healthsource Chiropractic or its affiliates are approved suppliers.