Does HealthSource Chiropractic have sole discretion in determining the media placement for advertising funded by franchisee contributions?

According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, HealthSource Chiropractic has sole discretion over the media placement for advertising programs financed by the Ad Fund. Franchisees contribute to the Ad Fund, as detailed in Paragraph 6.3a, with a contribution of two percent (2%) of the gross revenues of the Franchise.

HealthSource Chiropractic's sole discretion extends to the geographic, market, and media placement and allocation of advertising programs. This means that while franchisees contribute to the Ad Fund, HealthSource Chiropractic decides where and how the advertising money is spent. The funds may be used for various advertising media, including television, radio, newspaper, and internet programs.

This arrangement means that franchisees do not have direct control over how their advertising contributions are used. While the Ad Fund aims to maximize recognition of the HealthSource Chiropractic brand, there's no guarantee that advertising expenditures will be proportionate to contributions from franchisees in any specific geographic area. Franchisees are required to spend a minimum of $3,000 or five percent (5%) of the Franchise's gross revenues for local advertising, promotion and marketing, whichever is greater, in addition to any contributions to the Ad Fund and the Technology Fee.