factual

If a franchisee enters into a Management Agreement, does Healthsource Chiropractic have the right to review and approve it?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event that you enter into any Management Agreement or similar arrangement with respect to the provision of any professional services, we reserve the right, but do not assume the obligation, to review and approve such agreement.

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Agreement, Healthsource Chiropractic reserves the right to review and approve any Management Agreement that a franchisee enters into regarding professional services. This means that if a franchisee chooses to have a third party manage aspects of their clinic related to professional services, Healthsource Chiropractic wants to ensure that the agreement aligns with their standards and legal requirements.

This provision is particularly relevant in states where non-licensed individuals or entities can own a chiropractic practice but must have licensed professionals providing the actual chiropractic services. In such cases, a Management Agreement is often used to define the relationship between the franchisee (Clinic Management Business) and the licensed chiropractor (PC).

While Healthsource Chiropractic has the right to review and approve the agreement, the FDD states that they do not assume the obligation to do so. This implies that while they may not always exercise this right, franchisees should be prepared to submit their Management Agreements for approval. This process helps Healthsource Chiropractic maintain consistency and quality across its franchises and ensures compliance with applicable laws and regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.