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What was the total amount spent on advertising and marketing by Healthsource Chiropractic in 2022?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

National Ad Fund Revenue

Ad Fund payment obligations payable by franchisees to HealthSource Chiropractic, LLC. are computed at two percent (2%) of sales. Ad funds fees are payable monthly and to be used for advertising, promotional, marketing and related administrative expenses.

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

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the document does not explicitly state the total amount spent on advertising and marketing in 2022. However, it does mention that franchisees are required to contribute 2% of their gross revenues to the National Ad Fund, which is used for advertising, promotional, marketing, and related administrative expenses.

While the FDD outlines the mechanism for franchisees' contributions to the Ad Fund, it does not disclose the total revenue collected for the Ad Fund or the total expenditure on advertising and marketing activities for any specific year, including 2022. The FDD mentions that HealthSource Chiropractic will prepare an annual, unaudited statement of monies collected and costs incurred by the Ad Fund, which is available to franchisees upon written request.

Therefore, a prospective franchisee would need to request this annual statement from HealthSource Chiropractic to determine the actual amount spent on advertising and marketing in 2022. Understanding these figures is crucial for a franchisee to assess the effectiveness of the advertising and marketing efforts and to evaluate the value they receive from their contributions to the Ad Fund. It's important to note that the franchisor has sole discretion over the Ad Fund and is not a fiduciary to the franchisee with respect to its management.

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.