HealthSource Chiropractic
Bottom line
- Total investment $116K – $618K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $572K/year (median $491K).
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 152 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one HealthSource Chiropractic unit return on the cash you put in?
Unlevered ROIC · per unit
30%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 HealthSource Chiropractic units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.0M purchase
Total debt
$6.4M
SBA $4.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 47 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
91 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HealthSource Chiropractic · FDD (2025) PDF