Does Healthsource Chiropractic reserve the right to change or dissolve the advisory council at any time?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 Advisory Councils. You agree to participate in, and, if required, become a member of any advisory councils or similar organizations we form or organize for Clinic franchises. We will select the advisory council's members, and we may change or dissolve the advisory council at any time. We anticipate that an advisory council would serve in an advisory capacity, but may grant to the advisory council any operational or decision-making powers that we deem appropriate. We, or one of more of our affiliated companies or persons, may also offer separate, optional, advisory councils or groups that may have additional costs to you should you decide to participate.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic maintains control over the advisory councils for its franchisees. The document states that Healthsource Chiropractic will select the members of the advisory council. More importantly, Healthsource Chiropractic explicitly reserves the right to change or dissolve the advisory council at any time, giving them complete discretion over its existence and composition.
This provision means that while a franchisee may be required to participate in an advisory council, the council's structure, membership, and even its continued existence are not guaranteed. Healthsource Chiropractic can alter or eliminate the council as it sees fit. This could impact a franchisee's ability to provide input or influence decisions within the Healthsource Chiropractic system, as the advisory council's role and influence are subject to change at the discretion of Healthsource Chiropractic.
Furthermore, Healthsource Chiropractic retains the right to grant the advisory council any operational or decision-making powers it deems appropriate. This indicates that the council's authority is not fixed and can be adjusted by Healthsource Chiropractic. The document also mentions the possibility of separate, optional advisory councils or groups that may have additional costs for franchisees who choose to participate, adding another layer of complexity and potential expense.
In summary, while advisory councils may be formed within the Healthsource Chiropractic franchise system, franchisees should understand that Healthsource Chiropractic has ultimate control over these councils. This includes the power to change their membership, dissolve them entirely, and determine the scope of their authority. Franchisees should consider this when evaluating the level of influence they may have within the Healthsource Chiropractic franchise system.