Are there potential restrictions on referrals for designated health services to entities with which a HealthSource Chiropractic franchisee has financial relationships?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Many states and local jurisdictions have enacted laws, rules, regulations and ordinances that may apply to the operation of your HealthSource Chiropractic franchise. For example, state licensing and certification requirements may apply to persons who perform services for you or at your Clinic location, or to the legal structure of your business. These laws and regulations may also impose restrictions on referrals for designated health services to entities with which you have financial relationships. Also, you must comply with any and all federal, state and/or local privacy laws pertaining to your care recipients, including but not limited to HIPAA and the HI-TECH Act and related laws, rules and regulations. In all cases, you must also comply with laws that apply generally to all businesses. You should investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to your franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, there may be restrictions on referrals for designated health services to entities with which a franchisee has financial relationships. The FDD states that many state and local jurisdictions have enacted laws, rules, regulations, and ordinances that may apply to the operation of a HealthSource Chiropractic franchise. These laws and regulations may also impose restrictions on referrals for designated health services to entities with which the franchisee has financial relationships.
This means that a HealthSource Chiropractic franchisee needs to be aware of and comply with all applicable laws and regulations regarding referrals, including those that may restrict referrals to entities in which they have a financial interest. These laws are designed to prevent conflicts of interest and ensure that patient care decisions are based on the patient's best interests, rather than the financial interests of the healthcare provider. Failure to comply with these laws and regulations can result in substantial civil or criminal penalties for individuals or entities.
It is important for prospective HealthSource Chiropractic franchisees to investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to their franchise. This due diligence will help ensure that they operate their business in compliance with all applicable laws and regulations and avoid potential penalties.