Does Healthsource Chiropractic have the right to mandate new services that require additional investment from the franchisee?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.3 Modifications to System. We will continually be reviewing and analyzing developments relative to the System, and based upon our evaluation of this information, may make changes in the System, including but not limited to adding new components to services and products offered and equipment used by Clinic franchises. Moreover, changes in, or interpretations of, laws regulating the services offered by HealthSource Chiropractic franchises may (a) require us to restructure our franchise program, (b) require your General Manager (if any) and employees to obtain additional licenses or certifications, (c) require you to retain or establish relationships with additional professionals and specialists in the chiropractic, physical therapy, and/or healthcare industries, and/or (d) require you to modify your ownership or organizational structure. You agree, at our request, to modify the operation of the Franchise to comply with all such changes, and to be solely responsible for all related costs.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 52)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic retains the right to modify the System, including adding new components to services and products offered and equipment used by Clinic franchises. The document states that changes in laws may require Healthsource Chiropractic to restructure the franchise program, require the franchisee's General Manager and employees to obtain additional licenses or certifications, require the franchisee to retain or establish relationships with additional professionals, and/or require the franchisee to modify their ownership or organizational structure.
The franchisee agrees to modify the operation of the Franchise to comply with all such changes at Healthsource Chiropractic's request and is solely responsible for all related costs. This means that Healthsource Chiropractic can mandate new services or products that require additional investment from the franchisee.
This clause gives Healthsource Chiropractic broad authority to make changes to the franchise system, and it places the financial burden of those changes on the franchisee. Prospective franchisees should carefully consider this provision and its potential impact on their investment and profitability. It is common for franchisors to update their systems, but the franchisee typically bears the costs of compliance.