HealthSource ChiropracticFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HealthSource Chiropractic franchise requires a total initial investment of $116K – $618K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $572K[2]. SBA 7(a) loans show a 10.4% charge-off rate across 124 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $116K – $618K
- 23rd pct Healthcare
- Avg gross sales
- $572K
- 15th pct Healthcare
- Royalty
- 7.0%
- 34th pct Healthcare
- Units
- 132
- 65th pct Healthcare
- SBA default
- 10.4%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 138 to 132 over 3 years. Investigate why operators are leaving.
99% cash-on-cash return (based on Gross Margin). Above the 20% threshold most investors target.
Bottom line
- Total investment $116K – $618K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $572K/year (median $491K), with an estimated 99% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict A (Top Quintile) with a risk score of 26/100. SBA loan charge-off rate of 10.4% across 124 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HealthSource Chiropractic, LLC
- Parent company
- ZCS Holdings, Inc.
- Incorporated in
- OH
- HQ
- P.O. Box 770050 Lakewood, OH 44107
- Auditor
- Park & Illenberger, C.P.A.'s, Inc.
- Audited financials
- Franchisor revenue
- $6.6M
- 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
HealthSource Chiropractic franchisees operate standalone or multi-location chiropractic clinics providing spinal adjustment, physical therapy, and wellness services. Day-to-day operations include patient scheduling, clinical care delivery, insurance billing, staff management, and patient retention/marketing activities.
- CEO
- Chris Tomshack
- Headquarters
- OH
- Founded
- 2005
- FDD year
- 2025
- States available
- 32
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $9K | $45K |
| Equipment, build-out, other | $47K | $514K |
| Total initial investment | $116K | $618K |
Source: HealthSource Chiropractic 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$92K
16.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $116K – $618K
- Better than avg vs category
- Liquid capital req'd
- $9K – $45K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 1.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $199 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $572K
- Per unit, per year
- Median gross sales
- $491K
- Avg gross margin
- $364K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 99.1%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 119 units
- vs category median 12 · large
- Range (low → high)
- $58K→$1.6M
- Cohort dispersion (min → max)
- Quartile band
- $194K→$1.1M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 5 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
vs Healthcare averages
How HealthSource Chiropractic Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 132
- Opened
- 14
- Last reporting year
- Closed
- 4
- Turnover rate
- 3.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.5%
- Net unit change last year
- 3-yr CAGR
- -4.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
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.
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%
- 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
Vintage analysis
HealthSource Chiropractic charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HealthSource Chiropractic's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 18-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
1 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $80,000
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: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 26 / 100 rating
- 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
- 04MINORHigh investment range ($115K–$618K) with unclear ROI creates significant downside risk
- 05MINOR7% royalty on gross revenues (not net) compounds burden during low-margin periods
- 06MINOR10-year term is lengthy commitment given lack of financial performance transparency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 179 hrs
- On-the-job training
- 51 hrs
- Training location
- On-site and corporate
- Franchisor financing
- 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
FDD download
HealthSource Chiropractic · FDD (2025) PDF
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 $116K – $618K, 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 $572K. The median is $491K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 132 total units in the United States, including 138 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 A-grade franchise with a risk score of 26 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.