What documentation will Healthsource Chiropractic provide to a franchise owner who gives notice of their desire to renew?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
with all the terms and conditions of this Agreement up to the date of expiration, and not just on those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, HealthSource Chiropractic, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, to renew the franchise, the franchisee, HealthSource Chiropractic, and the franchisee's Principal Owners must execute the form of Franchise Agreement and any ancillary agreements that Healthsource Chiropractic is then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises. These documents will be modified to reflect that the agreement relates to the grant of a renewal franchise.
Notably, the terms of the Franchise Agreement that the franchisee must execute upon renewal, and any other agreements Healthsource Chiropractic may require, may differ materially from those contained in the original agreement. This includes the possibility of increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew will be contingent upon their acceptance of the new terms.
In addition to the Franchise Agreement and ancillary documents, the franchisee and their Principal Owners must also execute general releases, in a form satisfactory to Healthsource Chiropractic, of any and all claims against Healthsource Chiropractic and its affiliates, and their respective owners, officers, directors, employees, and agents. The franchisee must also pay to Healthsource Chiropractic a renewal fee equal to $10,000.00 concurrently with signing the renewal Franchise Agreement.