From where does the money come to pay the Management Fee for a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
hise 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.
6.3 Advertising Fees; Other Fees.
- 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.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Healthsource Chiropractic does not explicitly detail a "Management Fee". However, it does mention several fees franchisees must pay, which could be interpreted as covering management services. Specifically, franchisees are required to contribute to the Ad Fund, which is two percent of the franchise's gross revenues. This Advertising Fee is payable monthly, at the same time as the Continuing Franchise Fees.
Additionally, Healthsource Chiropractic franchisees are required to pay a monthly Technology Fee for website and technology-related services, as well as any fees relating to required human resources and payroll services. The FDD also mentions that Healthsource Chiropractic, or its affiliates, may offer additional optional services, products, or programs related to the franchise, which would be subject to additional fees paid to Healthsource Chiropractic or third parties.
Prospective franchisees should clarify with Healthsource Chiropractic what specific services are covered by each fee and whether any of these fees can be considered a "Management Fee" in practice. Understanding the exact allocation of these fees is crucial for assessing the overall cost and profitability of the franchise.