Is Healthsource Chiropractic required to establish and maintain an advertising fund?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
As stated in Paragraph 6.3a, due to the value of advertising and the importance of promoting the public image of HealthSource Chiropractic Clinic franchises, we may establish, maintain, and administer an Ad Fund to support and pay for national, regional, or local marketing and promotional programs that we deem necessary, desirable, or appropriate, in our sole discretion, to promote the good will and image of all HealthSource Chiropractic Clinic franchises.
You will contribute to it the Advertising Fee set forth in Section 6.3a.
We agree that any Clinics owned by us or our affiliates will be required to contribute to the Ad Fund on at least the same basis as you do, subject only to limitation under applicable law.
HealthSource Chiropractic will be entitled to direct all advertising programs financed by the Ad Fund, with sole discretion over (i) the creative concepts, materials, endorsements, and media used therein, and (ii) the geographic, market, and media placement and allocation of the programs.
HealthSource Chiropractic shall have the right to determine, in its sole discretion, the composition of all geographic territories and market areas for the development and implementation of such programs.
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, Healthsource Chiropractic is not required to establish and maintain an advertising fund. The FDD states that Healthsource Chiropractic may, in its sole discretion, establish, maintain, and administer an advertising fund (Ad Fund).
If Healthsource Chiropractic establishes an Ad Fund, franchisees are required to contribute to it. The contribution amount is two percent (2%) of the gross revenues of the franchise. Healthsource Chiropractic will provide franchisees with 30 days' advance notice of the establishment or termination of an Ad Fund, or any change in the required contribution. The advertising fees are payable monthly, at the same time as the Continuing Franchise Fees.
Healthsource Chiropractic has the right to terminate the Ad Fund by giving franchisees 30 days' advance written notice. All unspent monies on the date of termination will be divided between Healthsource Chiropractic and the contributing Healthsource Chiropractic Clinic franchisees in proportion to their respective contributions. Healthsource Chiropractic also retains the right to reinstate the Ad Fund under the same terms and conditions, with thirty (30) days' advance written notice of reinstatement.