If I want to operate a Healthsource Chiropractic Clinic Management Business, what agreements must I enter into?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
To operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Clinic. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit M, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Clinic Management Business will be located. A "Licensed Provider" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide chiropractic services under local and state laws.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, to operate a Clinic Management Business, you must enter into two agreements. First, you must sign a Franchise Agreement with Healthsource Chiropractic, LLC. Second, you must enter into a Management Agreement with a "Licensed Provider" who will own and operate the clinic. The Licensed Provider must be authorized to provide chiropractic services under local and state laws.
The FDD includes a general form of Management Agreement as Exhibit M, which can serve as a starting point. However, the actual Management Agreement used must be approved by Healthsource Chiropractic in its discretion. It must also satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Clinic Management Business will be located.
This structure is typically used in states that do not permit non-licensed persons to own or operate chiropractic practices. In states that do permit non-licensed persons to own and operate chiropractic practices, a Clinic Management Business Franchise is not necessary, but may be offered by Healthsource Chiropractic under certain circumstances. Prospective franchisees should carefully review Exhibit M and consult with legal counsel to ensure the Management Agreement complies with all applicable laws and regulations in their state.