What costs are included in the Healthsource Chiropractic audit expenses?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Expenses | Cost of audit and inspection (currently $1,200), plus any reasonable accounting and legal expenses | On demand | Payable if Continuing Franchise Fee or Advertising Fee is understated by 2% or more, or you fail to submit required reports or financial statements. |
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the audit expenses include the cost of the audit and inspection, which is currently $1,200. In addition to this, the franchisee is responsible for any reasonable accounting and legal expenses associated with the audit.
This fee is payable if the franchisee understates the Continuing Franchise Fee or Advertising Fee by 2% or more. It is also payable if the franchisee fails to submit required reports or financial statements. This means that Healthsource Chiropractic franchisees must ensure accurate reporting and timely submission of all required documents to avoid incurring these audit-related expenses.
Prospective Healthsource Chiropractic franchisees should be aware of the conditions that trigger an audit and the associated costs. Maintaining accurate financial records and adhering to the reporting schedule is crucial to avoid these additional expenses. Franchisees should clarify with Healthsource Chiropractic what specific accounting and legal expenses they might incur during an audit to better prepare for such a situation.