factual

Does the Healthsource Chiropractic amendment specify any conditions under which the Development Agreement can be transferred?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • e. If you propose to Transfer this Agreement, the Franchise or its assets, or any Interest, or if any of your Principal Owners proposes to Transfer a controlling Interest in you or make a Transfer that is one of a series of Transfers which taken together would constitute the Transfer of a controlling Interest in you, then you must apply to us for approval of such Transfer sign such forms and procedures as we have in effect at that time, the person or entity to whom you wish to make the Transfer ("Proposed New Owner") must apply to us for acceptance as a franchisee, and you must submit to us all of the information and documentation required for us to evaluate the proposed Transfer and to confirm that all of the conditions set forth in Section 14.5 below have been, or will be, satisfied.
  • 14.5 Conditions for Approval of Transfer. If you and your Principal Owners are in full compliance with this Agreement, both monetary and otherwise, we will not unreasonably withhold our approval of a Transfer that meets all the applicable requirements of this Section 14. The Proposed New Owner must be of good moral character and otherwise meet our then applicable standards for HealthSource Chiropractic Clinic franchisees. For any proposed Transfer, all of the following conditions must be met before or at the time of the Transfer:
  • a. in our belief and judgment, the Proposed New Owner must have sufficient business experience, aptitude, and financial resources to operate the Franchise;
  • b. you must pay any amounts owed for purchases from us and our affiliates, and any other amounts owed to us or our affiliates which are unpaid, including any Initial Franchisee Fee, Continuing Franchise Fees, and Advertising Fees;

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee needs to apply for approval to transfer their agreement. The franchisee must adhere to specific forms and procedures established by Healthsource Chiropractic at the time of the proposed transfer. The potential new owner must also apply for acceptance as a franchisee.

To facilitate the evaluation of the proposed transfer, the franchisee must provide all necessary information and documentation to Healthsource Chiropractic. This allows Healthsource Chiropractic to confirm that all conditions outlined in Section 14.5 of the agreement have been or will be met.

Healthsource Chiropractic states that if the franchisee and their principal owners are in full compliance with the agreement, both monetarily and otherwise, Healthsource Chiropractic will not unreasonably withhold approval of a transfer that meets all applicable requirements. The proposed new owner must be of good moral character and meet Healthsource Chiropractic's standards for franchisees. Several conditions must be met before or at the time of the transfer, including the new owner having sufficient business experience, aptitude, and financial resources to operate the franchise, and the franchisee must pay any outstanding amounts owed to Healthsource Chiropractic and its affiliates.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.