What requirements must the Management Agreement for a Healthsource Chiropractic Clinic Management Business satisfy?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
To operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Clinic. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit M, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Clinic Management Business will be located. A "Licensed Provider" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide chiropractic services under local and state laws.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Clinic Management Business involves a franchisee who is not licensed to practice chiropractic care but manages a Healthsource Chiropractic clinic. To operate this type of business, the franchisee must enter into both a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a Licensed Provider. The Licensed Provider is the entity that actually owns and operates the clinic and must be duly authorized to provide chiropractic services under local and state laws.
The Management Agreement between the franchisee and the Licensed Provider is subject to specific requirements. While Healthsource Chiropractic provides a general form of Management Agreement as Exhibit M to serve as a starting point, the actual agreement used must be approved by Healthsource Chiropractic at their discretion.
Most importantly, the Management Agreement must satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Clinic Management Business will be located. This means that franchisees must ensure their Management Agreements are fully compliant with all relevant state and local laws governing healthcare practices, business operations, and any other pertinent regulations. This requirement underscores the importance of consulting with legal counsel to ensure full compliance and avoid potential penalties.