How does HealthSource Chiropractic handle payments to third-party providers for website and technology services?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We have contracted with third parties to provide web site design, maintenance, hosting, and search engine optimization for our franchises, and certain technology-related administrative expenses. You will be required to use all such services. You will pay us a fee for such services, and we will pay the third-party providers directly. The amount you pay us may be less or more than the amount we pay to the third-party providers and may be used to offset internal costs related to the stated purposes of this fee.
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 use third-party services for website design, maintenance, hosting, and search engine optimization, as well as certain technology-related administrative expenses. HealthSource Chiropractic mandates the use of these services.
Franchisees do not directly pay the third-party providers. Instead, they pay a fee to HealthSource Chiropractic for these services, and HealthSource Chiropractic then pays the third-party providers directly. The amount franchisees pay to HealthSource Chiropractic may be different from what HealthSource Chiropractic pays to the third-party providers.
HealthSource Chiropractic may use the difference between the fees collected from franchisees and the payments made to third-party providers to offset internal costs related to the stated purposes of the fee. This arrangement gives HealthSource Chiropractic control over vendor selection and potentially allows them to generate revenue or cover expenses through these technology service arrangements.