Must all goods and services leased or purchased by a HealthSource Chiropractic franchisee comply with standards and specifications?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ed us and requested our approval in accordance in our Operations Manuals.
We estimate that your total expenditures in leasing or purchasing real estate, equipment, fixtures, products, marketing materials, services, and computer hardware and software from our approved suppliers will represent approximately 50% of your total purchases and expenses in connection with establishing and operating your HealthSource Chiropractic franchise. Virtually all of the goods and services that you must lease or purchase in establishing and operating your franchise must comply with our standards and specifications.
Issuance and Modification of our Specifications
Our Operations Manual sets forth our specifications, standards, and guidelines for all real estate, goods, and services that you are required to obtain in establishing and operating your franchise, and additional guidelines and requirements for operating your franchise (including the optional programs). We will make available new or modified specifications, standards, and guidelines to you through periodic amendments or supplements to the Operations Manual or other written materials. See Item 11 for additional information about our Operations Manual.
We will make available written copies of our standards and specifications to you and approved and proposed suppliers, unless these standards and specifications contain our confidential information (see Item 14).
Approved Products, Distributors and Suppliers
We have developed standards and specifications for the leasehold improvements of your Clinic, the equipment and materials used to perform services at your Clinic, and products authorized for sale at your Clinic. We have approved, and will continue to periodically approve, specifications and/or suppliers and distributors of the above items, services and products, which may include us or our affiliates, that meet our standards and requirements. These specifications include standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations. You must (1) purchase products for sale by your Clinic in the quantities we designate; (2) use those formats, formulae, and containers
for products that we prescribe; and (3) purchase all products, services and other materials only from distributors and other suppliers we have approved.
We may approve a single distributor or other supplier (collectively, "supplier") for any product or service, and may approve a supplier only as to certain products or services. We may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services for any group of Clinics franchised or operated by us. Our approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and other similar criteria, and may be temporary, pending our continued evaluation of the supplier.
You are required to use our designated supplier for site selection assistance and construction project management. You must acquire a site for your Clinic that meets our site selection criteria and that we approve.
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 must ensure that virtually all goods and services they lease or purchase for establishing and operating their franchise comply with the franchisor's standards and specifications. HealthSource Chiropractic estimates that expenditures related to these purchases from approved suppliers will constitute approximately 50% of a franchisee's total expenses in establishing and operating the franchise.
HealthSource Chiropractic maintains standards and specifications for a wide range of items, including clinic leasehold improvements, equipment and materials used for services, and products authorized for sale. These standards cover aspects like product quality, prices, consistency, reliability, financial capability, labor relations, and customer relations. Franchisees are required to purchase products in designated quantities, use prescribed formats and containers, and source all materials exclusively from approved distributors and suppliers.
To ensure compliance, HealthSource Chiropractic provides written copies of its standards and specifications to both franchisees and approved suppliers. The franchisor also reserves the right to inspect and re-inspect supplier facilities and products, and can revoke approval if a supplier fails to meet the established criteria. This system allows HealthSource Chiropractic to maintain quality control and consistency across all franchise locations.
If a franchisee wishes to use an unapproved supplier, they must submit a written request for approval, which may include inspections, product testing, and evaluation fees. HealthSource Chiropractic will then approve or disapprove the proposed supplier within 60 days of receiving all required information. Compliance with these purchasing requirements is essential for franchise renewal eligibility, and failure to comply may result in termination or withheld performance.