What is the deadline for a Healthsource Chiropractic Conversion Clinic to secure financing to fully develop the Franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. You agree at your own expense to do the following (i) within 90 days of the date of this Agreement if you are a Conversion Clinic, (ii) within 365 days of the date of this Agreement if you are a Start-up Clinic, or (iii) if you sign this Agreement pursuant to the purchase of a Development Agreement, by the Opening Deadline defined in Exhibit 1:
- (1) secure all financing required to fully develop the Franchise;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee operating a Conversion Clinic has 90 days from the date of the Franchise Agreement to secure all necessary financing to fully develop the franchise. This requirement is part of the franchisee's obligations outlined in the agreement.
This means that a prospective Healthsource Chiropractic franchisee who chooses to convert an existing chiropractic practice into a Healthsource Chiropractic Clinic must act quickly to obtain the required funding. This 90-day window is significantly shorter than the 365-day period allowed for Start-up Clinics, reflecting the expectation that Conversion Clinics may already have some infrastructure and potentially existing financing in place.
Failure to secure financing within this timeframe could potentially lead to a breach of the Franchise Agreement, potentially putting the franchise at risk. Therefore, it is crucial for potential Conversion Clinic franchisees to have a solid financial plan and pre-approved financing options before signing the Franchise Agreement with Healthsource Chiropractic.