Does Healthsource Chiropractic provide a standard Management Agreement form, and what are the requirements for its use?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules and regulations of the state in which the Clinic will be located.
- You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in compliance with all applicable laws, rules and regulations of the state in which the Clinic is located. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
- We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Clinic is located.
- The PC will employ and control the chiropractors, physical therapists and other personnel who will provide the actual chiropractic and related services required to be delivered at and through the Clinic. You may not provide any actual chiropractic care or any other professional services that require licensing or certification, nor will you supervise, direct, control or try to influence the exercise of professional and/or medical judgment, treatment protocols, employee decisions, clinical advice, clinical training, clinical chiropractic care or relationships with patients, by the PC or any of its employees or agents.
- The Continuing Franchise Fee described in Section 6.2 may be different, and if different, will be reflected in a negotiated addendum to be signed at the same time this Agreement is signed.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a general form of Management Agreement is included as an exhibit. This form serves as a starting point when a franchisee needs to establish a Management Agreement with a Professional Corporation (PC) to operate a Clinic Management Business. This arrangement is typically required in states where non-licensed individuals or entities are not permitted to own or operate chiropractic practices. The PC, which must be approved by Healthsource Chiropractic, will be responsible for employing and controlling the chiropractors and other personnel providing clinical services. The franchisee, under the Management Agreement, provides the PC with management and administrative services. The franchisee is responsible for ensuring the PC complies with all local and state laws.
Before a Healthsource Chiropractic franchisee signs the Management Agreement with the PC, they must obtain written approval from Healthsource Chiropractic. While Healthsource Chiropractic may offer assistance in preparing the agreement, the franchisee bears the responsibility for ensuring that the agreement complies with all applicable laws and regulations in the state where the clinic is located. The franchisee must maintain a Management Agreement with a PC throughout the entire term of the Franchise Agreement.
Healthsource Chiropractic emphasizes that the franchisee cannot provide any actual chiropractic care or professional services requiring licensing. Furthermore, the franchisee cannot supervise, direct, control, or influence the professional judgment, treatment protocols, or clinical care provided by the PC or its employees. The document also states that Healthsource Chiropractic retains the right to review and approve any Management Agreement to ensure compliance with their standards and legal requirements.