What is the process for a Healthsource Chiropractic franchisee to hire a general manager?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee needs prior written approval from Healthsource Chiropractic to hire a general manager. If the franchisee is an individual, they must actively participate in the operation of the franchise unless a general manager is approved. If the franchisee is a legal entity, at least one principal owner, officer, director, or employee approved by Healthsource Chiropractic must actively participate in the daily operations. If a general manager is approved, they will supervise the day-to-day operations.
The general manager must attend and complete the initial training program before starting their role. This training is the same program required for franchisees and designated employees, covering clinic operations through virtual, self-directed, and in-person instruction. The FDD specifies that Healthsource Chiropractic does not require the general manager to have an equity interest in the franchise. However, the general manager cannot have any interest in or business relationship with any competitor of the franchise.
Additionally, the general manager must sign a written agreement to protect confidential information and adhere to non-compete, non-disparagement, and non-solicitation covenants. The franchisee is responsible for ensuring the general manager obtains all legally required licenses and certifications before assuming their responsibilities. Some state laws may require a licensed chiropractor or other licensed professional to supervise the franchise, so franchisees must comply with these regulations.