What representation does the Management Company make regarding the Franchise Agreement with 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 Franchise Disclosure Document, the Management Company states that it has entered into a Franchise Agreement with HealthSource Chiropractic, LLC. This agreement, effective as of the date of the document, grants the Management Company a franchise to operate a Clinic Management Business. This franchise includes the right to use HealthSource's business model, services, products (referred to as the "System"), and trademarks.
This arrangement allows the Management Company to provide management, administrative, and similar services to a Licensed Provider. The Licensed Provider, in turn, offers chiropractic, physical therapy, and wellness services using HealthSource's System and Marks at their chiropractic clinic. The clinic's operations can be managed directly by the Licensed Provider or through an authorized entity.
In essence, the Management Company acts as an intermediary, holding the franchise rights from HealthSource Chiropractic and enabling licensed professionals to deliver healthcare services under the HealthSource brand. This structure may be particularly relevant in states where non-licensed individuals or entities are restricted from owning or operating chiropractic practices, as the Management Company can fulfill the business management role while the PC (Professional Corporation) focuses on providing the actual chiropractic services.