What are the conditions for a Healthsource Chiropractic franchise owner to be eligible for renewal?
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)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, to renew a franchise, the franchisee must continue to comply with all the terms and conditions of the existing Franchise Agreement up to its expiration date. This includes addressing any deficiencies outlined in a 6-month deficiency notice. Healthsource Chiropractic retains the right to refuse renewal, providing a notice stating the reasons for non-renewal.
To formally renew the franchise, the franchisee, along with their Principal Owners, must execute the then-current form of the Franchise Agreement and any related ancillary agreements. While no initial franchise fee is required for renewal, the terms of the renewed agreement may differ significantly from the original, potentially including increased Continuing Franchise Fees and Ad Fund contributions. Acceptance of these new terms is a prerequisite for renewal.
A renewal fee of $10,000.00 is due upon signing the renewal Franchise Agreement. Additionally, the franchisee and their Principal Owners must provide general releases, in a form satisfactory to Healthsource Chiropractic, of any claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents. These conditions ensure that the franchisee is up-to-date on all obligations and releases Healthsource Chiropractic from potential future liabilities before the franchise is renewed.