What sections of the Healthsource Chiropractic Franchise Agreement cover advertising obligations for Healthsource Chiropractic franchisees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
and materials). The Continuing Franchise Fee does not represent payment for the referral of customers or patients to you, and you
acknowledge and agree that the services we offer to you and our other HealthSource Chiropractic franchisees do not include the referral of customers or patients.
6.3 Advertising Fees; Other Fees.
- a. Recognizing the value of advertising to the goodwill and public image of Clinic franchises, we may, in our sole discretion, establish, maintain and administer an advertising fund (the "Ad Fund") for such advertising as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Ad Fund in the amount of two percent (2%) of the gross revenues of the Franchise. We will provide you with 30 days' advance notice of the establishment or termination of an Ad Fund and any change in the required contribution. These advertising fees (the "Advertising Fees") will be payable monthly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above. A further description of the Ad Fund and your obligations with respect to advertising and promoting the Franchise is found in Section 11 of this Agreement.
- b. In the future, we may also establish a program to provide additional marketing services to Clinic franchises involving the placement of individuals on a local basis to perform marketing activities. This program is optional for Clinic franchises. If you choose to use this marketing program, you must agree to pay the fee determined by us. You will only be permitted to use this program if you pay this fee. We reserve the right to change the amount of this fee at any time. If we choose to establish this program in the future, and you choose to purchase this optional program, you agree to comply with all specifications and requirements contained in the Operations Manual concerning this program. This fee does not represent payment for the referral of customers or patients to you, and you acknowledge and agree that the services we offer to you and our other HealthSource Chiropractic franchisees do not include the referral of customers or patients.
- c. Additionally, you are required to pay the monthly Technology Fee, defined and discussed in Section 11.4, for certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services discussed in Section 10.7.
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement outline the advertising obligations for franchisees. Section 6.3a discusses the Advertising Fees, stating that Healthsource Chiropractic may establish an Ad Fund, requiring franchisees to contribute 2% of their gross revenues. Section 11 of the agreement further describes the Ad Fund and franchisee obligations related to advertising and promotion.
Specifically, Section 11.1 details how Healthsource Chiropractic may establish and administer an Ad Fund to support marketing programs, with franchisees contributing the Advertising Fee as outlined in Section 6.3a. Healthsource Chiropractic has sole discretion over the advertising programs financed by the Ad Fund, including creative concepts, materials, and media placement. The Ad Fund can cover various costs, such as preparing advertising materials for different media, conducting marketing research, website development, and employing marketing agencies.
Item 11 of the FDD also mentions that Healthsource Chiropractic will review and approve or disapprove a franchisee's advertising, marketing, and promotional materials, as stated in Section 11.2 of the Franchise Agreement. Additionally, Healthsource Chiropractic may provide digital copies of marketing materials and may charge for hard or digital copies. These sections collectively define the scope of advertising obligations and the franchisor's control over marketing and advertising efforts within the Healthsource Chiropractic franchise system.