What agreements must be executed for a Healthsource Chiropractic franchise transfer?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
of the lease of the Premises to the Proposed New Owner;
- e. you must pay us a non-refundable Transfer fee in the amount of $10,000.00 concurrently with the execution of the Transfer Agreement, described in Section 14.5f below, and you must reimburse us for any reasonable expenses incurred by us in investigating and processing any Proposed New Owner where the Transfer is not consummated for any reason;
- f. you and your Principal Owners must execute a Transfer Agreement, which will include (i) a general release (in a form satisfactory to us) of any and all claims you and/or they may have against us, our affiliates, and our and our affiliates' respective officers, directors, employees, and agents, and (ii) acknowledgment that the restrictive covenants set forth in Article 9 of this Agreement will survive the Transfer to the extent set forth therein;
- g. we must approve the material terms and conditions of the proposed Transfer, including without limitation that the price and terms of payment are not so burdensome as to adversely affect the operation of the Franchise;
- h.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, several agreements must be executed to transfer a franchise. The franchisee and their Principal Owners must execute a Transfer Agreement. This agreement includes a general release of any claims against Healthsource Chiropractic, its affiliates, and their respective officers, directors, employees, and agents. It also acknowledges that the restrictive covenants outlined in Article 9 of the Franchise Agreement will remain in effect after the transfer, as specified in that article.
Additionally, the franchisee and their Principal Owners must enter into an agreement with Healthsource Chiropractic that subordinates any installment payments of the purchase price owed by the Proposed New Owner to the franchisee to the Proposed New Owner's obligations to pay amounts due under the Franchise Agreement or any new Franchise Agreement required by Healthsource Chiropractic. This agreement also includes a general release of any claims the franchisee may have against Healthsource Chiropractic. The Proposed New Owner may also be required to sign a new Franchise Agreement.
These requirements ensure that Healthsource Chiropractic maintains control over who becomes a franchisee and that any potential liabilities are addressed during the transfer process. The franchisor also collects a $10,000 transfer fee. Prospective franchisees should carefully review these requirements and consult with legal counsel to understand their obligations and potential liabilities when considering a franchise transfer.