What is the Development Fee for Healthsource Chiropractic, and is it refundable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
"Initial Franchise Fee") set forth below when you sign this Agreement. In recognition of the expenses we incur in furnishing assistance and services to you, you agree that
we will have fully earned the Initial Franchise Fee, and that is due and non-refundable when you sign this Agreement.
- a. If the Franchise you are purchasing is a Start-up Clinic, then your Initial Franchise Fee is $60,000.00. Notwithstanding the previous sentence, if Exhibit 1 states that you are signing this Agreement pursuant to your purchase of a development agreement, then your Development Fee paid pursuant thereto shall be in full satisfaction of this Agreement.
- b. If the Franchise you are purchasing is a Conversion Clinic, then your Initial Franchise Fee is $60,000.00.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the initial franchise fee for both Start-up and Conversion Clinics is $60,000. However, if the agreement is signed pursuant to the purchase of a development agreement, the Development Fee paid will satisfy the initial franchise fee requirement. The document specifies that the initial franchise fee is earned fully by Healthsource Chiropractic upon signing the agreement and is non-refundable.
This means that if a prospective franchisee enters into a development agreement with Healthsource Chiropractic, the fee paid under that agreement covers the initial franchise fee for the clinic. However, this fee, like the initial franchise fee, is non-refundable. This is a standard practice in franchising, as the franchisor incurs expenses in providing assistance and services to the franchisee from the outset.
Prospective franchisees should carefully consider the implications of the non-refundable nature of these fees. It is crucial to conduct thorough due diligence and assess the risks involved before signing any agreements or paying any fees to Healthsource Chiropractic. Understanding the terms and conditions of both the franchise agreement and any development agreements is essential to making an informed investment decision.