HealthSource Chiropractic Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 2006

Headquarters: Lakewood, Ohio

Estimated Number of Units: 145

Franchise Description: The franchisor is HealthSource Chiropractic, LLC. The franchisor’s parent company is ZCS Holdings, Inc. HealthSource Chiropractic clinics are business-to-consumer franchises with an easy operating system that provide “progressive rehabilitation,” by offering physical therapy and chiropractic services together as a comprehensive solution for pain relief, restoration of function, wellness care, and other related services and products. Franchisees may purchase their franchise as a new, start-up clinic, or they may convert an existing chiropractic clinic to a HealthSource Chiropractic Clinic.
Training Overview: The franchisor will provide to franchisees and their employees that the franchisor designates, the initial training program for HealthSource Chiropractic Clinic franchises. The initial training program includes virtual, self-directed and in-person instruction (at the franchisor’s headquarters) on clinic operations. Currently, the initial training program consists of 179 hours of classroom training and 51 hours of on-the-job training for franchisees and any staff the franchisor requires to attend. The training program is subject to change due to updates and modifications in materials, methods, procedures, manuals and personnel without notice to franchisees. The franchisor reserves the right to offer and hold additional ongoing training programs and franchise owners’ meetings for the clinic at such times and locations as it may deem necessary or appropriate.

Territory Granted: The Franchise Agreement for the clinic grants franchisees a territory known as the “protected territory,” the size of which is based on the population of the market, area demographics, and estimated market demand for the franchised products and services. The franchisor typically defines protected territories based upon population of approximately 30,000 to 45,000 persons. If franchisees are in compliance with the Franchise Agreement, then neither the franchisor nor its affiliates will, within the protected territory, operate or grant a franchise for another HealthSource Chiropractic Clinic offering the franchised services and products or using the franchisor’s marks.

Obligations and Restrictions: Unless the franchisor approves the employment of an on-site general manager to operate the HealthSource Chiropractic franchise, franchisees (if the franchise is an individual) or one of their principal owners, officers, directors, or employees approved by the franchisor (if the franchisor is a legal entity) must actively participate in the actual operation of the franchise, and devote as much time as may be reasonably necessary for its efficient operation. Franchisees must offer and sell only those services and products the franchisor has approved for the franchisee’s type of franchise. Franchisees must also offer all goods and services that the franchisor designates for the franchisee’s type of franchise.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Additional terms of 10 years are available if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees in the normal course. The franchisor does not guaranty a franchisee’s note, lease or obligations. If franchisees qualify for the VetFran program sponsored by the International Franchise Association, then the development fee or the initial franchise fee for their first franchise will be reduced by $5,000.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$60,000	$60,000
Security Deposits	$3,800	$9,500
Site Selection and Construction Management Fee	$20,000	$20,000
Leasehold Improvements/ Decorating Costs	$122,500	$227,500
Signage	$6,000	$10,000
Therapy Equipment and Soft Goods	$5,600	$6,100
Chiropractic Equipment	$14,049	$14,049
X-Ray	$35,900	$35,900
Class 4 Laser, and Spinal Decompression Equipment	$38,241	$38,241
Misc. Supplies & Equipment	$500	$2,000
Furnishings	$2,200	$3,070
Computers and Installation	$3,200	$3,500
Business Licenses and Permits	$300	$1,000
Professional Fees	$17,000	$39,500
Telecommunications Services	$200	$2,500
Insurance	$2,100	$5,300
Branding & Grand Opening Kit	$4,600	$6,600
3 Months Marketing Expenses	$16,300	$22,300
Expenses to Meet Initial Training Requirements	$3,000	$8,000
3 Months of Rent for Lease	$9,900	$27,000
3 Months Billing Software Lease	$1,794	$2,100
Technology Fee – 3 months	$597	$597
Human Resources and Payroll Services – 3 months	$1,951	$2,518
Credit Card Processing Fees – 3 months	$350	$2,200
Additional Funds – 3 months	$33,495	$44,840
Pre-Opening Payroll	$17,714	$24,072
ESTIMATED TOTAL (for a start-up clinic)	$421,291	$618,387

 
Other Fees

Type of Fee	Amount
Continuing Franchise Fee	7% of gross revenues.
Advertising Fee	2% of gross revenues.
Local Marketing Requirement	The greater of 5% of gross revenues or $3,000.
Local and Regional Advertising Cooperatives	An amount set by the cooperative, but not more than 5%.
Fee if Franchise Not Live on Software System	If franchise is not “live” on the HSWorx software system within two months post training, a $500 per month fee will be assessed. After month six the fee will increase to $1,000 starting month seven.
Technology Fee	$199 per month.
Annual Conference Expenses	Amounts charged by third parties.
Interest	Lesser of 15% per annum, and the highest commercial contract interest rate permitted by law.
Audit Expenses	Cost of audit and inspection (currently $1,200), plus any reasonable accounting and legal expenses.
Late Reporting Fee	$100 per week.
Returned Check Fee	$100
Supplier and Product Evaluation Fee	Cost of inspection and test of product sample (currently $500 -$700).
Insurance	Amount of unpaid premiums and related costs.
Replacement of Operations Manual	An amount set by the franchisor; currently $250.
Renewal Fee	$10,000
Transfer Fee	$10,000
Legal Costs and Attorney's Fees	All legal costs and attorneys’ fees incurred by the franchisor.
Injunction or Order of Specific Performance	All amounts incurred by the franchisor in obtaining an injunction or specific performance, including without limitation reasonable attorneys’ and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses and any damages the franchisor incurs as a result of the franchisee’s breach.
Indemnificatio	All amounts (including attorneys’ fees) incurred by the franchisor or otherwise required to be paid.
Alterations Fee	All amounts incurred by the franchisor.
Computer Software/ Hardware Installation Fee	All amounts the franchisor incurs (i) by installing, providing, supporting, modifying, and enhancing any proprietary software or hardware that it develops and license to franchisees or (ii) by providing computer system-related maintenance and support services that the franchisor or its affiliates provide to franchisees.
Electronic or Hard Copies of Marketing Materials	The franchisor’s cost.
Franchise Maintenance and Refurbishing	All amounts incurred by the franchisor.
De-Identification	All amounts incurred by the franchisor.
Termination Fee	One-half of then-current initial franchise fee for start-up clinics plus an amount equal to the franchisee’s average monthly continuing franchise fee, ad fund contribution, and technology fee, multiplied by the number of months remaining in their franchise term, discounted by a present value discount factor of 5%.
Liquidated Damages Resulting from Violation of Restrictive Covenants	$50,000, plus any actual damages incurred by the franchisor exceeding that amount, and all attorneys’ fees and costs incurred by the franchisor, to enforce the restrictive covenants in the Franchise Agreement.

The above information has been compiled from the FDD of HealthSource Chiropractic. Year of FDD: 2025.
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