When is the Continuing Franchise Fee due for a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) You must pay all amounts due by automatic debit, but we have the right to require you to pay all amounts due us or our affiliates by certified or cashier's check or wire transfer. After you sign the documents we require to debit your business checking account automatically for the amounts due (see Exhibit 5 to Franchise Agreement), we will debit your bank account for the Continuing Franchise Fees, Advertising Fees, and other amounts you owe us. You must make funds available for withdrawal from your account before each due date.
If you do not report your Clinic's gross revenues for any month, then we may debit your account for 120% of the Continuing Franchise Fee and Advertising Fee amounts that we debited during the previous month. If the Continuing Franchise Fee and Advertising Fee amounts we debit are less than the Continuing Franchise Fee and Advertising Fee amounts you actually owe us (once we determine the franchise's actual gross revenues for the month), then we will debit your account for the balance on the day we specify. If the Continuing Franchise Fee and Advertising Fee amounts we debit is greater than the Continuing Franchise Fee and Advertising Fee amount you actually owe us, then we will credit the excess amount, without interest, against the amount we otherwise would debit from your account during the following month.
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are required to pay all amounts due via automatic debit. After signing the required documents to authorize automatic debits from the franchisee's business checking account, Healthsource Chiropractic will debit the account for Continuing Franchise Fees, Advertising Fees, and any other amounts owed. Franchisees must ensure funds are available for withdrawal before each due date. The FDD does not specify the exact day of the month that the Continuing Franchise Fee is due.
If a Healthsource Chiropractic franchisee fails to report their clinic's gross revenues for any month, Healthsource Chiropractic may debit the account for 120% of the Continuing Franchise Fee and Advertising Fee amounts debited during the previous month. If the debited amounts are less than what is actually owed based on the clinic's actual gross revenues, Healthsource Chiropractic will debit the account for the balance on a specified day. Conversely, if the debited amounts exceed the actual amount owed, the excess will be credited, without interest, against the amount debited in the following month.
Prospective Healthsource Chiropractic franchisees should note the importance of maintaining accurate financial reporting and ensuring sufficient funds are available for automatic debits to avoid penalties or discrepancies in fee payments. It is also important to clarify with the franchisor the exact due date for the Continuing Franchise Fee to ensure timely payments and avoid any potential issues.