About The Source Chiropractic Franchise
The Source Chiropractic is a healthcare franchise offering skilled, professional, and personalized chiropractic services to the general public.
Franchising since 2022, the brand provides franchise opportunities to licensed chiropractors who want to build their own clinic using a proven system for development, operations, and patient care.
The initial franchise fee is $40,000.
The Source Chiropractic Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | Year 1: $2,777/month, Year 2: $4,777/month, Year 3-5: $6,777/month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Year 1: $667/month, Year 2: $1167/month, Year 3-5: $1,667/month | National brand fund |
| Total Investment Range | $82,079 – $136,979 | Includes build-out, inventory, working capital |
The investment range of $82K–$137K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Year 1: $2,777/month, Year 2: $4,777/month, Year 3-5: $6,777/month) and marketing fee (Year 1: $667/month, Year 2: $1167/month, Year 3-5: $1,667/month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Utility and Security Deposits | $500 | $4,500 |
| Leasehold Improvements | $20,000 | $40,000 |
| Signage | $1,000 | $5,000 |
| Furniture and Fixtures | $1,500 | $3,000 |
| Chiropractic Equipment | $3,000 | $8,000 |
| Office Equipment, Computers, Office Supplies | $2,500 | $6,000 |
| CRM/Back Office System | $500 | $1,000 |
| Business Licenses and Permits | $500 | $1,000 |
| Professional Fees | $800 | $1,500 |
| Initial Inventory | $500 | $1,200 |
| Business Insurance | $1,000 | $1,500 |
| Training Expenses | $3,279 | $7,279 |
| Grand Opening Marketing | $1,000 | $5,000 |
| Additional Funds | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% - 75% of then-current initial franchise fee |
| Technology Fee | Currently $400 per month |
| Additional Training Fees | Currently $1,500 per day, per person, plus travel and related expenses |
| Late Opening Fee | $1,500 per month |
| Relocation Fee | 25% of then-current initial franchise fee (potentially an additional fee of 25% of then-current initial fee for additional help) |
| System Modifications | All reasonable costs and expenses associated with system modification |
| Insufficient Funds | Currently $250 |
| Insurance Policies | Amount of unpaid premiums plus our expenses for obtaining the policies required |
| Temporary Management Assistance | Currently $400 per day |
| Interest & Late Fees | Lesser of the highest commercial interest rate permitted by law, and 15% per annum, plus a late fee of $100 per day of delinquency |
| Annual Conference | Registration Fee (our then-current registration fee) |
| Legal Costs and Attorneys’ Fees | All legal costs and attorneys’ fees incurred by us and our affiliates |
| Indemnification | All damages and amounts (including attorneys’ fees, costs and expenses) incurred by us and our affiliates |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | up to three (3) weeks of training at our training clinic and approximately one (1) to two (2) days of on-site training at your Franchised Business within the first ninety (90) days |
| Classroom Training | 40 |
| On-the-Job Training | 80 |
| Training Location | Tucson, AZ, Oakland, CA, or St. Petersburg, FL |
| Additional Training | The franchisor may offer periodic refresher or additional training courses, which may be optional or mandatory. All franchisees are required to attend two (2) in-person workshops per year (typically Friday-Saturday) and two (2) all-day virtual training summits per year (6-8 hours). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | The smaller of either (i) a population of 50,000 surrounding Franchised Business location or (ii) a two (2) mile radius around a Franchised Business location. |
| Description | The boundaries of your Protected Territory may be described in terms of radii, zip codes, streets, landmarks (both natural and man-made) or county lines, drive time maps or otherwise delineated on a map attached to your Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | five (5) years |
| Renewal Term | two (2) subsequent five (5) years terms, for a maximum total of ten (10) years |
| Renewal Conditions | To renew, the franchisee must not be in default, not have received three or more default notices in the prior 24 months, give timely notice, sign the then-current franchise agreement and ancillary documents (e.g., Personal Guarantee, Brand Protection Agreement), sign a general release, remodel or upgrade premises to current standards, and maintain possession of the facility under their lease. The new agreement may have materially different terms. |
| Transfer Fee | 50% - 75% of then-current initial franchise fee |
| Transfer Conditions | The proposed transferee must meet franchisor qualifications (good moral character, business experience, aptitude, financial resources), successfully complete initial training, and obtain all required licenses/permits. The franchisee and owners must be in compliance with the agreement, assign their lease, remodel the business to current standards, pay the transfer fee, and sign a general release. The franchisor has a right of first refusal. |
| Termination for Cause | The franchisor may terminate the agreement with five (5) days' written notice for material defaults including: failure to complete initial training, failure to secure lease or open on time, insolvency/bankruptcy, abandonment of the clinic, suspension/revocation of a license/permit, conviction of certain crimes or administrative disciplinary action, acts adversely affecting reputation, health/safety hazards, material misrepresentation, failure to pay amounts owed, underreporting revenue, unauthorized transfer, unauthorized use of intellectual property, or breach of brand protection covenants. |
| Non-Compete Period | During the term of the franchise and for a period of two (2) years after termination/expiration/transfer |
| Non-Compete Details | During the term, the franchisee, owners, managers, and immediate family members cannot own, operate, or be involved with a Competitive Business or divert customers. For two years after termination/expiration/transfer, these parties cannot own, operate, or be involved with a Competitive Business that competes with the franchisor's licensing/franchising activities. Additionally, for two years, they cannot own, operate, or be involved with a Competitive Business at the former premises, within the Protected Territory, or within a 15-mile radius of the Protected Territory or any other Source Chiropractic business. They are also prohibited from soliciting customers of the former business or contacting suppliers/vendors for competitive purposes. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires the franchisee to designate a “Managing Owner” who will be primarily responsible for the daily on-premises management and supervision of the business. This Managing Owner must be approved by the franchisor, dedicate full-time efforts to the Clinic, and successfully complete initial training and any mandatory refresher or advanced training courses. If management functions are delegated to a manager, that manager must also complete initial training and sign a Brand Protection Agreement, and the Managing Owner remains responsible for supervision. |
| Required Suppliers | adjustment and exam tables, chiropractic tools and equipment, supporting mobility/stability equipment, natural health supplementation, wellness syrups, apothecary items, patient management software and tax services. |
| Supply Restrictions | Franchisees are required to purchase or lease certain “source restricted” goods and services that meet franchisor specifications and/or must be purchased from approved or designated suppliers (which may include the franchisor or an affiliate). As of the issuance date, franchisees must purchase health supplementation products from the franchisor. The franchisor reserves the right to require purchase of any and all items and services from designated or exclusive suppliers in the future. |
| Franchisor Revenue from Suppliers | The franchisor has negotiated purchase agreements with suppliers for adjustment and exam tables, chiropractic tools and equipment, supporting mobility/stability equipment, natural health supplementation, wellness syrups, apothecary items, patient management software, and tax services. These suppliers pay the franchisor rebates ranging from 2% to 10% of revenues from franchisee purchases. The franchisor reserves the right to purchase items in bulk and resell them to franchisees at cost plus a markup, with no cap on the markup. |
The Source Chiropractic Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Source Chiropractic Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Source Chiropractic System Growth
The Source Chiropractic currently operates 0 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 2 |
| 2021 | 2 | 0 | 4 |
| 2022 | 1 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 2 states: CA, WA
Franchisor Financials (Item 21)
Audited by Citrin Cooperman & Company, LLP for year ending December 31.
The Source Chiropractic Franchise — FAQ
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