What standard codifications are used by Healthsource Chiropractic in their accounting methods?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, their financial presentations adhere to Generally Accepted Accounting Principles (GAAP) as outlined in the Accounting Standards Codifications (ASC) issued by the Financial Accounting Standards Board. This means that Healthsource Chiropractic follows a standardized set of accounting rules and guidelines widely accepted and used in the United States.

For a prospective franchisee, this indicates that Healthsource Chiropractic's financial reporting is structured and transparent, making it easier to understand and compare their financial statements with other companies. GAAP and ASC provide a common framework, ensuring consistency and comparability in financial reporting. This is important for franchisees when assessing the financial health and stability of the franchisor.

The use of GAAP and ASC also implies that Healthsource Chiropractic's financial statements are subject to external audits, as mentioned in the Independent Auditor's Report. These audits verify that the financial statements are presented fairly and in accordance with the established accounting principles. This adds another layer of assurance for potential franchisees, as it confirms that an independent third party has reviewed and validated the franchisor's financial information.

In summary, Healthsource Chiropractic's adherence to GAAP and ASC standards provides franchisees with confidence in the reliability and transparency of the franchisor's financial reporting. It ensures that the financial information is presented in a consistent and understandable manner, facilitating informed decision-making for prospective franchisees.