factual

Is a sample Healthsource Chiropractic Clinic Management Agreement included as an exhibit?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide chiropractic care, and are willing to undertake the investment and effort to own and operate a business that will manage a Start-Up or Conversion Clinic under the System; we refer to these businesses as "Clinic Management Businesses." For example, certain states do not permit non-licensed persons to own and/or operate chiropractic practices, but some states do. In states that do not permit non-licensed persons to own or operate chiropractic practices, a Clinic Management Business may be offered. In states that do permit non-licensed persons to own and operate chiropractic practices, a Clinic Management Business Franchise is not necessary, but may be offered by us under certain circumstances.

As further described below, to operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Clinic. A "PC" 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. In such an arrangement:

  • You, as franchisee, will construct or build-out the Clinic for use by the PC.
  • The Clinic business will be operated by the PC using the HealthSource name and Marks.
  • In addition to signing the Franchise Agreement with us, before you begin operating the Clinic Management Business, you must enter into a management agreement

Source: Item 22 — Contracts (FDD page 77)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic FDD, a Clinic Management Business is an option in certain states where non-licensed persons are not permitted to own and/or operate chiropractic practices. To operate a Clinic Management Business, a franchisee must enter into a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a "PC" (one or more licensed individuals or a professional corporation). The FDD does not specify whether a sample Clinic Management Agreement is included as an exhibit.

However, the FDD does state that the standard franchise agreement is attached as Exhibit B and the area development agreement is attached as Exhibit C. It also mentions that the Franchise Agreement includes several exhibits, all of which are legally binding and an integral part of the complete Franchise Agreement.

Because the excerpt does not explicitly state whether a sample Clinic Management Agreement is included as an exhibit, a prospective franchisee should confirm with Healthsource Chiropractic whether this agreement is included and carefully review all exhibits to fully understand their obligations and rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.