What advance written notice does HealthSource Chiropractic provide to franchisees before terminating the Ad Fund?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have the right to terminate the Ad Fund by giving you 30 days' advance written notice. All unspent monies on date of termination will be divided between HealthSource Chiropractic and the contributing HealthSource Chiropractic Clinic franchisees in proportion to our and their respective contributions. At any time thereafter, we will have the right to reinstate the Ad Fund under the same terms and conditions as described in this Paragraph (including the
rights to terminate and reinstate the Ad Fund) by giving you thirty (30) days' advance written notice of reinstatement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 HealthSource Chiropractic Franchise Disclosure Document, HealthSource Chiropractic will provide franchisees with 30 days' advance written notice if they decide to terminate the Ad Fund. This fund is used for advertising and marketing to promote the HealthSource Chiropractic brand.
This means that if HealthSource Chiropractic decides to discontinue the Ad Fund, franchisees will have a 30-day period to prepare for any changes in marketing strategies or budget allocations. This advance notice allows franchisees time to adjust their local marketing efforts and potentially compensate for the loss of support from the Ad Fund.
Additionally, the FDD states that upon termination of the Ad Fund, any unspent monies will be divided between HealthSource Chiropractic and the contributing franchisees in proportion to their respective contributions. This ensures that franchisees receive a fair share of the remaining funds, based on what they contributed. HealthSource Chiropractic also retains the right to reinstate the Ad Fund, providing 30 days' advance written notice of reinstatement.