What is a 'Start-up Clinic' in the context of a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a HealthSource Chiropractic Clinic in accordance with the System in a specified geographic territory. This Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a HealthSource Chiropractic Clinic (we refer to your HealthSource Chiropractic franchise hereinafter as the "Franchise" or the "Franchised Business"). You may purchase and operate your Franchise as a new, start-up Clinic (a "Start-up Clinic"), or may convert an existing chiropractic practice to a HealthSource Chiropractic Clinic (a "Conversion Clinic").
- c. 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 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee can purchase and operate their franchise as either a new, start-up clinic, referred to as a "Start-up Clinic", or convert an existing chiropractic practice into a Healthsource Chiropractic Clinic, known as a "Conversion Clinic".
Healthsource Chiropractic also offers franchises to individuals or entities who may not be licensed to provide chiropractic care but are willing to invest in and manage a clinic under the Healthsource Chiropractic system. These are referred to as "Clinic Management Businesses" and can be either Start-up Clinics or Conversion Clinics. In states where non-licensed individuals are not permitted to own or operate chiropractic practices, this Clinic Management Business model is offered. In states where it is permitted, a Clinic Management Business franchise may still be offered under certain circumstances.
For a Clinic Management Business, the franchisee is responsible for constructing or building out the clinic for use by a licensed professional, referred to as a "PC". The PC then operates the clinic using the Healthsource Chiropractic name and marks. The franchisee must enter into both a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with the PC before beginning operations.