Does Healthsource Chiropractic provide customer or patient referrals to its franchisees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 you
acknowledge and agree that the services we offer to you and our other HealthSource Chiropractic franchisees do not include the referral of customers or patients.
6.3 Advertising Fees; Other Fees.
- a. Recognizing the value of advertising to the goodwill and public image of Clinic franchises, we may, in our sole discretion, establish, maintain and administer an advertising fund (the "Ad Fund") for such advertising as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Ad Fund in the amount of two percent (2%) of the gross revenues of the Franchise. We will provide you with 30 days' advance notice of the establishment or termination of an Ad Fund and any change in the required contribution. These advertising fees (the "Advertising Fees") will be payable monthly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, Healthsource Chiropractic does not offer customer or patient referrals to its franchisees. The agreement explicitly states that the services provided to franchisees do not include such referrals.
However, Healthsource Chiropractic may establish a program to provide additional marketing services to Clinic franchises, involving the placement of individuals on a local basis to perform marketing activities. Participation in this program is optional, and franchisees who choose to use it must pay a fee determined by Healthsource Chiropractic, which can be changed at any time. The agreement clarifies that this fee does not represent payment for customer or patient referrals.
Prospective franchisees should note that while Healthsource Chiropractic does not directly provide referrals, franchisees are required to engage in advertising and marketing efforts to attract patients. They must also comply with all applicable laws and regulations related to marketing and patient privacy, including obtaining patient authorization or consent before marketing to them. Therefore, franchisees need to be prepared to invest time and resources in marketing their Healthsource Chiropractic clinics to build their patient base.