Does Healthsource Chiropractic require the general manager of a franchise to have an equity interest in the franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the chiropractic and healthcare profession may require a licensed chiropractor or other licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed chiropractor. You are responsible for complying with these state laws and regulations.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 51–52)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic does not require that a general manager have an equity interest in your franchise. However, the general manager cannot have any interest in or business relationship with any business competitor of your franchise. The general manager must also sign a written agreement to maintain confidential the proprietary information and conform with the covenants not to compete, as well as non-disparagement and non-solicitation covenants.
If a franchisee is not an individual, then at least one principal owner, director, officer, or other employee approved by Healthsource Chiropractic must actively participate in the actual, on-site, day-to-day operation of the franchise. If Healthsource Chiropractic agrees that a franchisee may employ a general manager, then the general manager must fulfill this requirement. Any general manager must obtain all licenses and certifications required by law before assuming his or her responsibilities at the franchise.
Furthermore, some state laws and regulations affecting the chiropractic and healthcare profession may require a licensed chiropractor or other licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed chiropractor. The franchisee is responsible for complying with these state laws and regulations.