factual

How often is the continuing franchise fee paid to Healthsource Chiropractic?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.2 Continuing Franchise Fee. You agree to pay us a continuing franchise fee ("Continuing Franchise Fee") equal to seven percent (7%) of the gross revenues (defined below) of the Franchise. The Continuing Franchise Fee will be payable monthly on the day of the month we specify based on the Franchise's gross revenues for the preceding month. The term "gross revenues" shall, for purposes of this Agreement, mean the total of all revenue and receipts derived from the operation of the Franchise, including all amounts received at or away from the site of the Franchise, or through the business the Franchise conducts (such as fees for chiropractic and/or physical therapy care, fees for the sale of any service or product, gift certificate sales, and revenue derived from products sales, whether in cash or by check, credit card, debit card, barter or exchange, or other credit transactions); and excludes only sales taxes collected from customers and paid to the appropriate taxing authority, and any customer refunds and credits the Franchise actually makes. You and we acknowledge and agree that the Continuing Franchise Fee represents compensation paid by you to us for the guidance and assistance we provide and for the use of our Marks, Confidential Information, know-how, access to proprietary software and business systems, and other intellectual property we allow you to use under the terms of this Agreement (including, without limitation, copyrighted and proprietary forms and materials). The Continuing Franchise Fee does not represent payment for the referral of customers or patients to you, and

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the continuing franchise fee is paid monthly. The franchisee must pay Healthsource Chiropractic a continuing franchise fee equal to 7% of the franchise's gross revenues. This fee is due on a specific day of each month, which Healthsource Chiropractic will specify. The payment is based on the gross revenues from the preceding month.

The gross revenues include all revenue and receipts derived from the operation of the franchise. This includes amounts received at or away from the site of the franchise, or through the business the Franchise conducts, such as fees for chiropractic and/or physical therapy care, fees for the sale of any service or product, gift certificate sales, and revenue derived from products sales, whether in cash or by check, credit card, debit card, barter or exchange, or other credit transactions. The only exclusions from gross revenues are sales taxes collected from customers and paid to the appropriate taxing authority, and any customer refunds and credits the Franchise actually makes.

The 7% continuing franchise fee compensates Healthsource Chiropractic for their guidance, assistance, use of their marks, confidential information, know-how, access to proprietary software and business systems, and other intellectual property. The continuing franchise fee is not a payment for customer or patient referrals.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.