Under what condition can a Healthsource Chiropractic franchisee employ an on-site general manager?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we approve your employment of an on-site general manager to operate your HealthSource Chiropractic franchise, you (if you are an individual) or one of your principal owners, officers, directors, or employees approved by us (if you are a legal entity) must actively participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager, then the general manager will supervise the day-to-day operation of your franchise. You must not hire any general manager without our prior written approval of his or her qualifications. Each general manager and successor general manager must attend and complete our initial training program for your franchise prior to commencing the role of General Manager (see Item 11). We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the chiropractic and healthcare profession may require a licensed chiropractor or other licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed chiropractor. You are responsible for complying with these state laws and regulations.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 51–52)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee can employ an on-site general manager to operate their HealthSource Chiropractic franchise only if Healthsource Chiropractic approves it. Otherwise, the franchisee (if an individual) or an approved principal owner, officer, director, or employee (if a legal entity) must actively participate in the franchise's actual operation and dedicate sufficient time for its efficient operation. If Healthsource Chiropractic approves the employment of a general manager, that general manager will then supervise the franchise's day-to-day operations.
Healthsource Chiropractic requires prior written approval of the general manager's qualifications before they are hired. Furthermore, each general manager and any successor must attend and complete the initial training program before starting their role. While the general manager is not required to have an equity interest in the franchise, they cannot have any conflicting interests or business relationships with any of Healthsource Chiropractic's competitors. The general manager must also sign a written agreement to protect confidential information and adhere to non-compete, non-disparagement, and non-solicitation covenants.
Prospective Healthsource Chiropractic franchisees should note that some state laws and regulations may require a licensed chiropractor or other licensed professional to own or supervise the franchise, or necessitate a management agreement with a licensed chiropractor. The franchisee is responsible for complying with all applicable state laws and regulations. This condition ensures that the franchise operates according to Healthsource Chiropractic's standards and all legal requirements, whether the franchisee manages the business directly or employs a general manager.