What range of revenue or other material consideration does Healthsource Chiropractic reserve the right to receive from suppliers?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
for any other product, service, or equipment.
Our Involvement with Suppliers
We and our affiliates and designees reserve the right to receive revenue or other material consideration from suppliers in consideration for other goods or services that we require or advise you to obtain from approved suppliers. We anticipate that any revenue or other consideration received would probably include promotional allowances, rebates, volume discounts, and other payments, and which range from zero to 50 percent of the amount of the goods or services you purchase from the supplier. In fiscal year 2024, our revenue totaled $6,893,645. Of this total, $335,649 or 4.9% of our total revenue, was derived from franchise purchases or leases, including but not limited to purchases of services provided by HealthSource Chiropractic, as well as products and services purchased from third party suppliers that pay us a rebate and other payments for franchise purchases. These figures do not include the revenues received by our affiliate, Octalean (which receives net revenues from the voluntary HS Masterminds program used by some HealthSource Chiropractic franchises). Our affiliate, Octalean, obtained revenues from the sale of services to HealthSource Chiropractic franchisees in the amount of $245,418 in the 2024 fiscal year. We expect that at least some of these arrangements will generally allow us to obtain discounts off standard pricing and pass at least a portion of the savings on to you.
The approved supplier for certain chiropractic equipment, Pivotal Health Solutions, also pays us a rebate of 5% on all purchases made by our franchises. The approved supplier for certain chiropractic, massage, acupuncture, physical therapy, rehabilitation, and other equipment, fitness supplies, vitamins, and retail display units, WBC Group, LLC, pays us a rebate of 5% of all purchases made by our franchises from WBC Group, LLC, except that we do not receive any rebate on retail display units purchased by our franchises. A supplier for certain merchant/credit card services for Clinic franchises, OpenEdge Payments LLC, pays us a rebate of 50% of the difference of OpenEdge Payments LLC's fee revenues generated f
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic reserves the right to receive revenue or other material consideration from suppliers in exchange for goods or services that franchisees are required or advised to obtain from approved suppliers. This consideration may include promotional allowances, rebates, volume discounts, and other payments. The range of revenue or other consideration Healthsource Chiropractic may receive from suppliers ranges from zero to 50 percent of the amount of the goods or services a franchisee purchases from the supplier.
For example, the approved supplier for certain chiropractic equipment, Pivotal Health Solutions, pays Healthsource Chiropractic a rebate of 5% on all purchases made by Healthsource Chiropractic franchises. Similarly, WBC Group, LLC, an approved supplier for various equipment and supplies, pays Healthsource Chiropractic a 5% rebate on franchise purchases, excluding retail display units. OpenEdge Payments LLC, a supplier for merchant/credit card services, pays Healthsource Chiropractic a rebate of 50% of the difference between their fee revenues from franchise transactions and their expenses related to those transactions.
In 2024, Healthsource Chiropractic's total revenue was $6,893,645, with $335,649 (4.9% of total revenue) derived from franchise purchases or leases, including services provided by Healthsource Chiropractic and products/services from third-party suppliers that pay Healthsource Chiropractic a rebate. These figures do not include revenues received by Healthsource Chiropractic's affiliate, Octalean, which earned $245,418 from services sold to Healthsource Chiropractic franchisees in 2024. Healthsource Chiropractic indicates that these arrangements may allow them to obtain discounts and potentially pass some savings on to franchisees. Prospective franchisees should consider how these supplier relationships and potential rebates might affect their costs and the overall value of the franchise.