What representation does the Management Company make regarding the authorization of the agreement for Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Management Company has entered into a Franchise Agreement (the "Franchise Agreement") with HealthSource Chiropractic, LLC ("HealthSource"), dated as of the date of this Agreement, whereby HealthSource grants to Management Company a franchise (the "Franchise") to operate a Clinic Management Business and the right to use HealthSource's business model, services and products (the "System") and Marks (as defined in Section 4.2 below);
WHEREAS, Licensed Provider desires to provide chiropractic, physical therapy, and wellness services utilizing HealthSource's System and Marks, and Licensed Provider requires the provision of certain management, administrative, and similar services; and
WHEREAS, Management Company and Licensed Provider desire to enter into an arrangement under the terms and conditions stated in this Agreement whereby Management Company can provide (or cause to be provided) certain the management, administrative and similar services requested by Licensed Provider and whereby Licensed Provider can provide chiropractic, physical therapy, and wellness services using the System and Marks at the Licensed Provider's chiropractic clinic business, which may be carried out directly by the Licensed Provider or through an entity authorized to carry out such business (the "Clinic").
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the Management Company has entered into a Franchise Agreement with HealthSource Chiropractic, LLC, as of the date of the agreement. Through this agreement, HealthSource grants the Management Company a franchise to operate a Clinic Management Business. This franchise provides the right to use HealthSource's business model, services, products, and trademarks.
The agreement also states that the Licensed Provider desires to offer chiropractic, physical therapy, and wellness services using HealthSource's system and trademarks. The Licensed Provider requires specific management, administrative, and similar services. The Management Company will provide (or arrange to provide) these management, administrative, and similar services requested by the Licensed Provider. The Licensed Provider can then offer chiropractic, physical therapy, and wellness services at their chiropractic clinic, either directly or through an authorized entity.
In essence, the Management Company acts as an intermediary, holding the franchise rights from HealthSource Chiropractic and providing management services to the Licensed Provider, who delivers the actual chiropractic and related services. This structure allows for a separation of business management and clinical practice, potentially enabling licensed professionals to focus on patient care while the Management Company handles administrative tasks.