What obligation does a Healthsource Chiropractic franchisee's General Manager have regarding the operation of the franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
10.7 Management and Personnel of the Franchise
- a. Unless we approve your employment of a General Manager to operate the Franchise as provided in Paragraph 4, you must actively participate in the actual, on-site, day-today operation of the Franchise, and devote as much of your time as is reasonably necessary for the efficient operation of the Franchise. If you are not an individual, then at least one (1) Principal Owner, director, officer, or other employee of you whom we approve must comply with this requirement. If we agree that you may employ a General Manager, then the General Manager must fulfill this requirement.
- b. Any General Manager must obtain all licenses and certifications required by law before assuming his or her responsibilities at the Franchise.
- c. You must ensure that your employees and independent contractors of the Franchise have any licenses as may be required by law, and hold or are pursuing any licenses, certifications, and/or degrees required by law or by us in the Operations Manual, as updated from time to time.
- d. You will be exclusively responsible for the terms of your employees' and independent contractors' employment and compensation, and for the proper training of your employees and independent contractors in the operation of the Franchise, all hiring, retention and firing decisions, and for all other employment practices utilized in the operation of the Franchise. You must notify and communicate clearly with your employees in all dealings (including, without limitation, your written and electronic correspondence, paychecks, and other materials) that Franchisee (and only Franchisee) is their employer and that HealthSource Chiropractic is not their employer.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee employs a General Manager, that General Manager must fulfill the requirement of actively participating in the actual, on-site, day-to-day operation of the franchise. The franchisee is typically required to fulfill this role unless Healthsource Chiropractic approves the employment of a General Manager.
Before assuming responsibilities at the Healthsource Chiropractic franchise, the General Manager must obtain all licenses and certifications required by law. The franchisee is responsible for ensuring that all employees and independent contractors, including the General Manager, have the necessary licenses as required by law or by Healthsource Chiropractic's Operations Manual.
Upon termination of the Franchise Agreement, the General Manager must immediately comply with the restrictive covenants set forth in the agreement and any Restrictive Covenants Agreement signed by the General Manager, if applicable. These obligations ensure that the General Manager is qualified and compliant with all legal and Healthsource Chiropractic standards, and also address post-termination responsibilities.