What is the obligation for an individual franchisee of a Healthsource Chiropractic clinic regarding their participation in the operation of the franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Your HealthSource Chiropractic Clinic franchise must operate at a site we approve and according to our standards, specifications, operating procedures, and rules (the "System Standards"). Unless we approve your employment of an on-site general manager to operate your HealthSource Chiropractic franchise, you (if you are an individual) or one of your principal owners, officers, directors, or employees approved by us (if you are a legal entity) must actively participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager, then the general manager will supervise the day-to-day operation of your franchise. You must not hire any general manager without our prior written approval of his or her qualifications. Each general manager and successor general manager must attend and complete our initial training
program for your franchise prior to commencing the role of General Manager (see Item 11). We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the chiropractic and healthcare profession may require a licensed chiropractor or other licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed chiropractor. You are responsible for complying with these state laws and regulations.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 51–52)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, if you are an individual franchisee, you must actively participate in the actual operation of the franchise and devote as much time as reasonably necessary for its efficient operation. The HealthSource Chiropractic Clinic franchise must operate at an approved site and according to the System Standards. However, HealthSource Chiropractic may approve your employment of an on-site general manager to operate your HealthSource Chiropractic franchise, in which case the general manager will supervise the day-to-day operations.
If a general manager is employed, HealthSource Chiropractic requires prior written approval of their qualifications, and the general manager must attend and complete the initial training program before starting their role. The general manager cannot have any conflicting business interests and must agree to maintain confidential information and adhere to non-compete and non-solicitation covenants.
It's important to note that some state laws and regulations may require a licensed chiropractor or other licensed professional to own or supervise the franchise, or require a management agreement with a licensed chiropractor. The franchisee is responsible for complying with these state laws and regulations. Therefore, prospective franchisees should investigate these requirements in their specific location and discuss them with HealthSource Chiropractic.