Does the Healthsource Chiropractic amendment specify any conditions under which the Development Agreement can be renewed by the franchisee?
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)
The 2025 Healthsource Chiropractic Franchise Disclosure Document outlines the conditions for franchise renewal, but does not mention any specific conditions for renewing a Development Agreement. To renew the franchise, the franchisee must adhere to the current agreement's terms up to its expiration. Healthsource Chiropractic will send a non-renewal notice stating the reasons for refusal, if applicable.
To formally renew, the franchisee, along with their Principal Owners, must execute the then-current form of Franchise Agreement and any related ancillary agreements. While there is no initial franchise fee for renewal, a renewal fee of $10,000.00 is required upon signing the renewal agreement. The new terms in the renewal agreement may differ significantly from the original, potentially including increased Continuing Franchise Fees and Ad Fund contributions.
Moreover, the franchisee and their Principal Owners must provide general releases, in a form satisfactory to Healthsource Chiropractic, of any claims against Healthsource Chiropractic and its affiliates. The right to renew is contingent upon accepting these new terms and fulfilling all obligations.
Since the FDD does not specify conditions for renewing a Development Agreement, a prospective franchisee should directly ask Healthsource Chiropractic about the specific terms and conditions for renewing a Development Agreement, as these are not detailed in the standard franchise renewal terms.