Can Healthsource Chiropractic audit a franchisee without advance notice?

The 2025 Healthsource Chiropractic Franchise Disclosure Document does not explicitly state whether Healthsource Chiropractic can audit a franchisee without advance notice. However, it does state that if a franchisee under-reports gross revenues for any period, as determined by an audit or inspection, in an amount greater than five percent (5%), it can be grounds for termination of the franchise agreement.

While the FDD does not specify the notice period for audits, it is important for prospective franchisees to understand the circumstances under which Healthsource Chiropractic might conduct an audit and what the potential consequences could be. Franchisees should maintain accurate financial records and report gross revenues correctly to avoid any discrepancies that could lead to an audit and potential penalties.

To gain a comprehensive understanding of Healthsource Chiropractic's audit procedures, a prospective franchisee should ask the franchisor about the typical audit process, including how much advance notice is given before an audit, what triggers an audit, and what recourse a franchisee has if they disagree with the audit findings. Understanding these details is crucial for managing the financial aspects of the franchise and maintaining a good working relationship with Healthsource Chiropractic.