What agreement must be entered into regarding installment payments for a Healthsource Chiropractic franchise transfer?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if a franchisee plans to transfer their franchise to a new owner and the purchase price is paid in installments, both the franchisee and their Principal Owners must enter into a specific agreement with Healthsource Chiropractic. This agreement ensures that the new owner's obligation to make installment payments to the seller (the former franchisee) is subordinate to the new owner's financial obligations to Healthsource Chiropractic.

Specifically, the agreement mandates that the Proposed New Owner's payments to Healthsource Chiropractic under the existing Franchise Agreement or any new Franchise Agreement take precedence over installment payments to the former franchisee. This protects Healthsource Chiropractic's revenue stream and ensures that franchise fees and other financial obligations to the company are prioritized during the transfer.

Additionally, this agreement must contain a general release of any claims that the seller (the existing franchisee) may have against Healthsource Chiropractic. This release is a standard legal protection for Healthsource Chiropractic, preventing future legal disputes arising from the transfer. This requirement is a condition that must be met before or at the time of the transfer to the Proposed New Owner.