Does the Healthsource Chiropractic amendment specify any conditions under which the Development Agreement can be renewed?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
otice will state what actions, if any, you must take to correct the deficiencies in your operation of the Franchise or of the Premises, and will specify the
time period in which those deficiencies must be corrected or other requirements satisfied. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, HealthSource Chiropractic, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the renewal of a franchise is contingent upon several factors. To renew the franchise, the franchisee, along with their Principal Owners, must execute the current form of the Franchise Agreement and any related ancillary agreements. These agreements may be different from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew is dependent on accepting these new terms.
In addition to signing the renewal Franchise Agreement, a renewal fee of $10,000.00 is required. Franchisees and their Principal Owners must also provide general releases of claims against Healthsource Chiropractic and its affiliates. The FDD also states that renewal of the franchise is conditional on the franchisee's compliance with all terms and conditions of the agreement up to the expiration date.
If Healthsource Chiropractic decides not to renew the franchise, they will provide a notice stating the reasons for the non-renewal. This ensures the franchisee is informed about the specific issues leading to the decision. This process is fairly standard in franchising, as franchisors typically want to ensure that franchisees are meeting brand standards and are a good fit for the system before offering a renewal.