What was the total amount of 'other' revenue for Healthsource Chiropractic in 2024?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
BERS' AND STOCKHOLDERS' EQUITY:
On March 20, 2022 the Company finalized a tax-free reorganization under IRC Section 368. As part of the reorganization, the Company now has 1,000 Class A Units, 1,000 Class B Units, and 1,000 Class C Units; none with a par value.
As of December 31, 2024, ZCS Holdings, Inc. holds 700 Class A Units and FW – HES Holdings, LLC holds 300 Class B Units.
The remaining authorized units have not been issued and are still outstanding.
NOTE L – RELATED PARTY TRANSACTIONS:
The details concerning related party transactions are included in Note D – Advance Receivable – Affiliates, Note I – Note Payable – Member, Note O – Related Party Leases, and Note P – Operating leases.
NOTE M - REVENUE:
Franchise Agreements
Franchise agreement revenue is derived from the sale or transfer of chiropractic franchises across the United States. The pre-opening services are distinct from the franchise license and are accounted for as a single performance obligation. Sales prices for new franchises range from $45,000 to $60,000, and depends on the number of franchises being purchased. To transfer a franchise is $10,000.
The number of franchises sold in 2024 was 16, sold in 2023 was 21, and sold in 2022 was 36. There were 184, 187 and 179, Healthsource franchises at December 31, 2024, 2023, and 2022, respectively, none of which were owned by HealthSource Chiropractic, Inc. There were 132 franchisees in operation at December 31, 2024.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, information regarding the specific amount of 'other' revenue is not disclosed. However, the document does detail several revenue streams for Healthsource Chiropractic, including franchise agreement revenue, royalty revenue (7% of sales), termination fees, national ad fund revenue (2% of sales), and technology fund revenue ($199 per month). These revenue streams are derived from fees paid by franchisees to Healthsource Chiropractic, LLC.
Prospective franchisees should note that the absence of a specific 'other' revenue figure does not necessarily mean this category is insignificant. It is possible that 'other' revenue encompasses miscellaneous income sources not individually broken out in the financial statements. Understanding the composition of this 'other' revenue category could be important for assessing the overall financial health and stability of Healthsource Chiropractic.
To gain a clearer understanding, prospective franchisees should consider asking Healthsource Chiropractic for a more detailed breakdown of their revenue streams, specifically requesting clarification on what constitutes 'other' revenue and its financial significance. This information would provide a more complete picture of the franchisor's income sources and potentially reveal additional financial obligations for franchisees.