Can Healthsource Chiropractic deny a transfer if the price and terms of payment are too burdensome?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- g. we must approve the material terms and conditions of the proposed Transfer, including without limitation that the price and terms of payment are not so burdensome as to adversely affect the operation of the Franchise;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic must approve the material terms and conditions of the proposed transfer of a franchise. This includes ensuring that the price and terms of payment are not so burdensome that they would adversely affect the operation of the franchise.
This provision protects Healthsource Chiropractic from a transfer that could destabilize the franchise system. If a potential buyer is paying too much for the franchise, or has unsustainable payment terms, it could lead to financial difficulties and negatively impact the Healthsource Chiropractic brand.
As a prospective franchisee, it's important to understand that Healthsource Chiropractic has a vested interest in the financial health of its franchisees, even when a transfer is proposed. This clause gives Healthsource Chiropractic the ability to safeguard the brand and the interests of other franchisees by ensuring that any transfer is financially sound and sustainable. A franchisee looking to sell should ensure that the terms of any potential sale are reasonable and will not negatively impact the business's future operations, as Healthsource Chiropractic will review these terms.