Who are the parties to the Healthsource Chiropractic Franchise Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Agreement, we refer to as "we," "us," or the "HealthSource Chiropractic." We refer to you as "you," "Franchise Owner" or "Franchisee" and such terms include any person or entity that operates or has an interest in the Franchised Business (defined below). If you are a corporation, partnership or limited liability company, you will notice certain provisions that are applicable to those principal shareholders, partners or members on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Principal Owners".
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the agreement is between Healthsource Chiropractic and the Franchise Owner, referred to as "you," "Franchise Owner," or "Franchisee." The FDD clarifies that these terms include any person or entity that operates or has an interest in the Franchised Business. If the franchisee is a corporation, partnership, or limited liability company, the agreement also applies to the principal shareholders, partners, or members, who are referred to as "Principal Owners."
For prospective franchisees, this means that if you sign the agreement as an individual, you are the party bound to its terms. If you operate the franchise through a business entity, both the entity and its Principal Owners are bound by the agreement. This ensures that Healthsource Chiropractic has recourse against both the business and the individuals controlling it.
Additionally, in cases where a Clinic Management Business is established, the agreement involves HealthSource Chiropractic, LLC and the Management Company. The Management Company then enters into an agreement with a Licensed Provider to provide chiropractic services using HealthSource's system and marks. This structure is often used in states where non-licensed individuals or entities cannot directly own or operate chiropractic practices, ensuring compliance with local regulations while still allowing individuals to invest in a Healthsource Chiropractic franchise.