factual

Does Healthsource Chiropractic supervise or control a franchisee's relationships with its employees?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • d. You will be exclusively responsible for the terms of your employees' and independent contractors' employment and compensation, and for the proper training of your employees and independent contractors in the operation of the Franchise, all hiring, retention and firing decisions, and for all other employment practices utilized in the operation of the Franchise. You must notify and communicate clearly with your employees in all dealings (including, without limitation, your written and electronic correspondence, paychecks, and other materials) that Franchisee (and only Franchisee) is their employer and that HealthSource Chiropractic is not their employer.
  • e. You must establish any training programs for your employees and/or independent contractors that we may prescribe in writing from time to time. You are required to enroll in and maintain the human resources and payroll services provided by the vendor we designate for such services, including the payment of any fees and execution of any agreement required by such vendor. The required services consist of payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding.
  • f. You must require all employees and independent contractors to maintain a neat and clean appearance and conform to the standards of dress that we specify in the Operations Manual, as updated from time to time.
  • g. Each of your employees and independent contractors must sign a written agreement, in a form approved by us, to maintain confidential our Confidential Information, proprietary information, and trade secrets as described in Paragraph 9.1. You must forward to us a copy of each such signed agreement.
  • h. All of your employees and independent contractors must render prompt, efficient and courteous service to all customers of the Franchise.
  • i. You agree not to recruit or hire, either directly or indirectly, any employee (or a former employee, for six (6) months after his or her employment has ended) of any HealthSource Chiropractic Clinic or Regional Developer franchise operated by us, our affiliates, or another HealthSource Chiropractic franchise owner without first obtaining the written consent of us, our affiliate, or the franchise owner that currently employs (or previously employed) such employee. (If you violate this provision, in addition to any other right or remedy we may have, you agree to pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. This amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach).

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are primarily responsible for managing their employees. While Healthsource Chiropractic does not directly control the employment relationships, it does set certain standards and requirements that franchisees must follow regarding their employees.

The franchisee is exclusively responsible for the terms of employment, compensation, training, hiring, retention, and firing decisions related to their employees and independent contractors. Franchisees must also clearly communicate to their employees that the franchisee, and not Healthsource Chiropractic, is their employer. However, Healthsource Chiropractic mandates that franchisees enroll in and maintain human resources and payroll services from a designated vendor.

Healthsource Chiropractic also has the right to prescribe training programs for the franchisee's employees and independent contractors. Additionally, employees must maintain a neat and clean appearance according to standards set in the Operations Manual, and they must sign an agreement to protect Healthsource Chiropractic's confidential information. Franchisees are also restricted from recruiting or hiring employees from other Healthsource Chiropractic locations without written consent, and violating this provision could result in a penalty of twice the employee's annual salary, plus costs and attorneys' fees.

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.