How is the Management Fee calculated for a Healthsource Chiropractic clinic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Recognizing the value of advertising to the goodwill and public image of Clinic franchises, we may, in our sole discretion, establish, maintain and administer an advertising fund (the "Ad Fund") for such advertising as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Ad Fund in the amount of two percent (2%) of the gross revenues of the Franchise. We will provide you with 30 days' advance notice of the establishment or termination of an Ad Fund and any change in the required contribution. These advertising fees (the "Advertising Fees") will be payable monthly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above. A further description of the Ad Fund and your obligations with respect to advertising and promoting the Franchise is found in Section 11 of this Agreement.
- b. In the future, we may also establish a program to provide additional marketing services to Clinic franchises involving the placement of individuals on a local basis to perform marketing activities. This program is optional for Clinic franchises. If you choose to use this marketing program, you must agree to pay the fee determined by us. You will only be permitted to use this program if you pay this fee. We reserve the right to change the amount of this fee at any time. If we choose to establish this program in the future, and you choose to purchase this optional program, you agree to comply with all specifications and requirements contained in the Operations Manual concerning this program. This fee does not represent payment for the referral of customers or patients to you, and you acknowledge and agree that the services we offer to you and our other HealthSource Chiropractic franchisees do not include the referral of customers or patients.
- c. Additionally, you are required to pay the monthly Technology Fee, defined and discussed in Section 11.4, for certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services discussed in Section 10.7.
- 6.4 Fees Relating to Optional Programs. We, or our affiliates, may offer additional optional services, products or programs in connection with your Clinic Franchise, subject to an additional fee paid to us or third-parties.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchise agreement outlines various fees, including an advertising fee, but it does not explicitly detail a "Management Fee." However, it does mention fees associated with optional marketing programs and technology services.
Healthsource Chiropractic franchisees are required to contribute to an advertising fund, which is set at two percent (2%) of the franchise's gross revenues. These advertising fees are payable monthly, coinciding with the continuing franchise fees. In addition to the advertising fund, Healthsource Chiropractic may introduce an optional marketing program in the future, which involves placing individuals locally to conduct marketing activities. If a franchisee chooses to participate in this optional program, they must pay a fee determined by Healthsource Chiropractic, which can be changed at any time.
Furthermore, franchisees are obligated to pay a monthly technology fee for website and technology-related services, as well as any fees related to required human resources and payroll services. These fees cover payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring, and employee onboarding. Healthsource Chiropractic also reserves the right to offer additional optional services, products, or programs through themselves or their affiliates, which may incur additional fees paid to Healthsource Chiropractic or third parties.
Prospective franchisees should inquire with Healthsource Chiropractic about any potential management fees, how they are calculated, and under what circumstances they apply. Understanding all potential fees and costs is crucial for making an informed investment decision.