Can Healthsource Chiropractic require franchisees to use search engine optimization services?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that the Ad Fund may be used to pay any and all costs of maintaining, administering, directing, and preparing national, regional or local advertising materials, programs, and promotional activities, including, without limitation, (a) costs for preparing and conducting television, radio, magazine, billboard, newspaper, internet and other media programs and activities, (b) costs associated with conducting marketing research, (c) costs associated with website development and marketing, including without limitation, search engine optimization and social media, (d) administering regional and multi-regional advertising programs, including, without limitation, purchasing direct mail and other media advertising, (e) employing advertising, program and marketing agencies, and vendors providing marketing services, (f) development, implementation and maintenance of online asset management tools, (g) marketing and advertising training programs and materials, and (h) costs for providing promotional brochures and advertising templates and materials to HealthSource Chiropractic Clinic franchises.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees may be required to contribute to an advertising fund, which can be used for search engine optimization.
Healthsource Chiropractic has sole discretion over the advertising programs financed by the Ad Fund. This includes the ability to determine the creative concepts, materials, endorsements, and media used, as well as the geographic, market, and media placement and allocation of the programs. The Ad Fund may cover various costs, including those associated with website development and marketing, such as search engine optimization and social media.
Franchisees are required to contribute to the Ad Fund as detailed in Section 6.3a of the agreement. Healthsource Chiropractic may establish, maintain, and administer the Ad Fund to promote the goodwill and image of all HealthSource Chiropractic Clinic franchises. The contribution amount is two percent of the gross revenues of the franchise. Franchisees will receive 30 days' advance notice of the establishment or termination of the Ad Fund, or any changes to the required contribution.
In addition to the Ad Fund, Healthsource Chiropractic may establish a separate, optional program to provide additional marketing services, which could involve individuals performing local marketing activities. However, participation in this program is not mandatory, and franchisees must pay a fee to use it. Franchisees must comply with all specifications and requirements in the Operations Manual if they choose to participate in the optional program.