What was the total revenue from the National Ad Fund for Healthsource Chiropractic in 2023?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
We will prepare an annual, unaudited statement of monies collected and costs incurred by the Ad Fund and will make it available to you on written request.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are required to contribute to the National Ad Fund. These payments are calculated as two percent (2%) of the franchisee's gross sales. The funds collected are explicitly designated for advertising, promotional activities, marketing initiatives, and the associated administrative costs. These Ad Fund fees are payable on a monthly basis.
While the FDD specifies the percentage of sales allocated to the National Ad Fund and its intended uses, it does not disclose the total revenue generated by the Ad Fund in 2023. The document 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.
For a prospective franchisee, understanding the total revenue of the Ad Fund is crucial for evaluating the scale and potential impact of marketing efforts. It would be prudent to request the annual statement of the Ad Fund from Healthsource Chiropractic to gain insights into the fund's financial activity and how it benefits franchisees. This information can help assess the value and effectiveness of the advertising and marketing support provided by the franchisor.