What are the two ways a Healthsource Chiropractic franchise can be purchased and operated?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a HealthSource Chiropractic Clinic in accordance with the System in a specified geographic territory. This Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a HealthSource Chiropractic Clinic (we refer to your HealthSource Chiropractic franchise hereinafter as the "Franchise" or the "Franchised Business"). You may purchase and operate your Franchise as a new, start-up Clinic (a "Start-up Clinic"), or may convert an existing chiropractic practice to a HealthSource Chiropractic Clinic (a "Conversion Clinic").
- c. In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide chiropractic care, and are willing to undertake the investment and effort to own and operate a business that will manage a Start-Up or Conversion Clinic under the System; we refer to these businesses as "Clinic Management Businesses." For example, certain states do not permit non-licensed persons to own and/or operate chiropractic practices, but some states do. In states that do not permit non-licensed persons to own or operate chiropractic practices, a Clinic Management Business may be offered. In states that do permit non-licensed persons to own and operate chiropractic practices, a Clinic Management Business Franchise is not necessary, but may be offered by us under certain circumstances.
As further described below, to operate a Clinic Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Clinic. A "PC" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide chiropractic services under local and state laws. In such an arrangement:
- You, as franchisee, will construct or build-out the Clinic for use by the PC.
- The Clinic business will be operated by the PC using the HealthSource name and Marks.
- In addition to signing the Franchise Agreement with us, before you begin operating the Clinic Management Business, you must enter into a management agreement
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a prospective franchisee has two options for purchasing and operating a franchise. The first option is to purchase and operate a new, start-up Healthsource Chiropractic Clinic, referred to as a "Start-up Clinic." This involves establishing a new clinic from the ground up, adhering to the Healthsource Chiropractic system and standards.
The second option is to convert an existing chiropractic practice into a Healthsource Chiropractic Clinic, known as a "Conversion Clinic." This allows existing chiropractic practices to rebrand and operate under the Healthsource Chiropractic system.
Additionally, in certain legally permissible cases, Healthsource Chiropractic may offer franchises to individuals or entities not licensed to practice chiropractic care. These franchisees would own and operate a business that manages either a Start-Up or Conversion Clinic, referred to as a "Clinic Management Business." This arrangement involves a Franchise Agreement with Healthsource Chiropractic and a Management Agreement with a licensed individual or professional corporation (PC) that owns and operates the clinic. The franchisee constructs or builds out the clinic, while the PC operates the clinic using the Healthsource name and marks.