Regarding patient referrals at a Healthsource Chiropractic franchise, what control or direction does the Management Company NOT have?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4 MANAGEMENT COMPANY SHALL HAVE NO CONTROL OR DIRECTION OVER THE NUMBER, TYPE, OR RECIPIENT OF PATIENT REFERRALS MADE BY LICENSED PROVIDER AND NOTHING IN THIS AGREEMENT SHALL BE INTERPRETED AS DIRECTING OR INFLUENCING SUCH REFERRALS. NONE OF MANAGEMENT COMPANY'S SERVICES HEREUNDER SHALL CONSTITUTE OBLIGATIONS OF MANAGEMENT COMPANY TO GENERATE PATIENTS TO LICENSED PROVIDER.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, the Management Company has no control or direction over the number, type, or recipient of patient referrals made by the Licensed Provider. The agreement explicitly states that nothing within it should be interpreted as directing or influencing such referrals. Furthermore, the services provided by the Management Company do not include any obligation to generate patients for the Licensed Provider. This ensures that the Licensed Provider maintains autonomy in making patient referrals based on their professional judgment.
This arrangement is structured to comply with state laws and regulations that may prohibit the corporate practice of chiropractic medicine and fee-splitting. The agreement emphasizes that the Licensed Provider has exclusive control and authority over the practice of chiropractic medicine. This separation of management and clinical decisions is a critical aspect of the franchise model, particularly in healthcare-related businesses.
For a prospective Healthsource Chiropractic franchisee, this means that while the Management Company provides administrative and management services, it does not interfere with clinical decisions related to patient referrals. This protects the franchisee's professional autonomy and ensures compliance with healthcare regulations. The franchisee can focus on providing quality chiropractic care without external influence on referral practices.