HealthSource Chiropractic Franchise Cost, Revenue & Review 2026
- Investment
- $436K – $635K
- Disclosed sales
- $610K
- gross sales, not profit
- SBA charge-off
- 10.4%
- on 124 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HealthSource Chiropractic is a healthcare franchise operating chiropractic and rehab clinics offering adjustments, physical therapy, and wellness care. Franchisees run a clinic managing chiropractors, patient care, and billing.
FranchiseVerdict summary · 2026
A HealthSource Chiropractic franchise requires a total initial investment of $436K – $635K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $610K[2]. SBA 7(a) loans show a 10.4% charge-off rate across 124 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $436K – $635K
- 65th pct Healthcare
- Avg gross sales
- $610K
- 12th pct Healthcare
- Royalty
- 7.0%
- 37th pct Healthcare
- Units
- 128
- 66th pct Healthcare
- SBA charge-off
- 10.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $436K – $635K including a $60K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $610K/year (median $516K). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 10.4% across 124 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -4 franchised outlets in the latest year (14 opened, 4 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HealthSource Chiropractic, LLC
- Parent company
- ZCS Holdings, Inc.
- FDD Item 1, page 11 of the 2026 FDD
- CEO title
- President and Chief Executive Officer
- Chris Tomshack, D.C.
- Incorporated in
- Ohio
- HQ
- P.O. Box 770050, Lakewood, OH 44107
- Auditor
- Park & Illenberger, C.P.A.'s, Inc.
- Audited financials
- Franchisor revenue
- $7.9M
- vs $6.9M prior year
Affiliated brands
- Apex Longevity
- HealthSource Chiropractic International
- Octalean
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Chris Tomshack, D.C.
- Headquarters
- Ohio
- Founded
- 2005
- FDD year
- 2026
- States available
- 32
Can you afford it, and what does the money buy?
Entry cost runs 67% above the typical healthcare franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $33K | $45K |
| Equipment, build-out, other | $342K | $530K |
| Total initial investment | $436K | $635K |
Source: HealthSource Chiropractic 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $436K – $635K
- Middle of category vs category
- Liquid capital req'd
- $33K – $45K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $199 |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 10% below the healthcare norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for HealthSource Chiropractic until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$575K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one HealthSource Chiropractic unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $610K
- Per unit, per year
- Median gross sales
- $516K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 107 outlets
- vs category median 20 · large
- Range (low → high)
- $84K→$1.7MCited, not corroborated — printed on page 68 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $230K→$1.1M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 5 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $610K/year in gross sales. Median is $516K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 9.0% (near the Healthcare median).
Disclosure
Transparency score 5/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -4.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare medians
How HealthSource Chiropractic Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 128
- Opened
- 14
- Last reporting year
- Closed
- 4
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 27.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.3%
- Net unit change over 3 years
- 3-yr CAGR
- -4.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 7
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
162 current owners across 34 states; 8 former (terminated, transferred or not renewed) listed separately.
- MN 26
- TX 15
- AL 14
- FL 10
- NC 7
- OH 7
- CA 6
- SC 6
- GA 5
- IL 5
- SD 5
- CO 4
- +22 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 124
- Loan volume
- $27.5M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 10.4%
- on 124 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 89.2%
- 5-yr charge-off
- 42.9%
- Loans approved 2021+
- Active lenders
- 56
- Defaults
- 8
- Typical loan rate
- 7.1%
- avg rate to borrowers
- Franchised industry avg
- 8.4%
- brand above franchise avg ↑
- Jobs supported
- 530
- 2.2 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 63% went to startups / new businesses, 37% to established operators
Franchise vs independent — in offices of chiropractors, franchised businesses charge off at 8.4% vs 12.9% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
HealthSource Chiropractic charge-off rate by loan vintage
Top lenders financing HealthSource Chiropractic franchisees
Showing 3 of 56 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for HealthSource Chiropractic from SBA 7(a) FOIA data.
- Principal loss rate
- 4.4%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 7.08%
- Avg chargeoff amount
- $135K
- Lender concentration
- 15.4%
- Job velocity
- 2.2 per $100K
- Startup risk premium
- +23.3pp
- NAICS benchmark
- 6.0%
- NAICS 621310
- Jobs supported
- 530
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 17 | $4.3M | 0.0% |
| 2 | VisionBank | 9 | $1.7M | 0.0% |
| 3 | Old National Bank | 5 | $685K | 0.0% |
| 4 | The Bank of Elk River | 5 | $1.2M | 66.7% |
| 5 | First Western Bank & Trust | 4 | $665K | 0.0% |
| 6 | Profinium, Inc. | 4 | $507K | 0.0% |
| 7 | First Bank of the Lake | 4 | $1.8M | 0.0% |
| 8 | Wells Fargo Bank National Association | 3 | $490K | 50.0% |
| 9 | U.S. Bank, National Association | 3 | $918K | 0.0% |
| 10 | BayFirst National Bank | 3 | $533K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 35 | 2 | 6.7% |
| OHOhio | 10 | 0 | 0.0% |
| TXTexas | 9 | 1 | 33.3% |
| ILIllinois | 8 | 1 | 12.5% |
| NDNorth Dakota | 4 | 0 | 0.0% |
| UTUtah | 4 | 0 | -- |
| GAGeorgia | 3 | 0 | -- |
| IAIowa | 3 | 0 | 0.0% |
| WYWyoming | 3 | 0 | 0.0% |
| ALAlabama | 2 | 1 | 50.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 10.4% — 35% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Minimal growth, undisclosed profitability, prior disclosure litigation, and opaque financial performance create meaningful risk despite protected territory and reasonable unit base.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two public agency/regulatory settlement orders: (1) Virginia SCC Division of Securities and Retail Franchising (2020) - failure to disclose an officer's prior personal bankruptcy, refund up to $80,000 to affected purchaser plus $9,000 in costs/penalties; (2) California Commissioner of Financial Protection and Innovation (2021) Consent Order for the same non-disclosure issue, requiring the company to desist and refrain. The officer involved (Bernard Brozek) is no longer employed by the company.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Park & Illenberger, C.P.A.'s, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MINORStagnant unit growth (1.5% YoY) suggests market saturation or franchisee dissatisfaction
- 02HIGHLitigation history involving willful disclosure failures raises corporate governance and transparency concerns
- 03MEDNet income not disclosed in Item 19 — impossible to assess actual franchisee profitability despite $571,990 average revenue
- 04MINOR7% royalty on gross revenues (not net) compounds burden during low-margin periods
- 05MINOR10-year term is lengthy commitment given lack of financial performance transparency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 37,500 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Lorain County, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 2 |
View Item 3 litigation summary
Two public agency/regulatory settlement orders: (1) Virginia SCC Division of Securities and Retail Franchising (2020) - failure to disclose an officer's prior personal bankruptcy, refund up to $80,000 to affected purchaser plus $9,000 in costs/penalties; (2) California Commissioner of Financial Protection and Innovation (2021) Consent Order for the same non-disclosure issue, requiring the company to desist and refrain. The officer involved (Bernard Brozek) is no longer employed by the company.
Items 10, 11
Training & Operations
- Classroom training
- 152 hrs
- On-the-job training
- 51 hrs
- Training location
- Virtual/self-directed and in-person at Avon, Ohio (HealthSource University); observation hours at franchisee's own Clinic
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- franchisee_with_franchisor_approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- HSWorx
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HSWorx
Item 20 · call current owners
Franchisee Contacts
170 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HealthSource Chiropractic franchise?
The total investment to open a HealthSource Chiropractic franchise ranges from $436K – $635K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HealthSource Chiropractic franchise owners earn?
According to Item 19 of the HealthSource Chiropractic FDD, the average gross sales per unit is $610K. The median is $516K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns HealthSource Chiropractic?
HealthSource Chiropractic is franchised by HealthSource Chiropractic, LLC. Its parent company is ZCS Holdings, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the HealthSource Chiropractic FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the HealthSource Chiropractic FDD and qualifies whose outlets they describe.
What is HealthSource Chiropractic's franchise failure rate?
Based on SBA 7(a) loan data, HealthSource Chiropractic has a charge-off rate of 10.4% across 124 loans, meaning 10.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many HealthSource Chiropractic franchise locations are there?
As of their most recent FDD filing, HealthSource Chiropractic has 128 total units in the United States, including 128 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is HealthSource Chiropractic a good franchise to buy?
FranchiseVerdict rates HealthSource Chiropractic as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.