What examples of events are considered a 'Transfer' of interest in the Healthsource Chiropractic franchise agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. If you propose to Transfer this Agreement, the Franchise or its assets, or any Interest, or if any of your Principal Owners proposes to Transfer a controlling Interest in you or make a Transfer that is one of a series of Transfers which taken together would constitute the Transfer of a controlling Interest in you, then you must apply to us for approval of such Transfer sign such forms and procedures as we have in effect at that time, the person or entity to whom you wish to make the Transfer ("Proposed New Owner") must apply to us for acceptance as a franchisee, and you must submit to us all of the information and documentation required for us to evaluate the proposed Transfer and to confirm that all of the conditions set forth in Section 14.5 below have been, or will be, satisfied.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a 'Transfer' requiring franchisor approval includes proposing to transfer the Franchise Agreement, the franchise itself, its assets, or any interest in it. This also applies if any Principal Owners propose to transfer a controlling interest in the franchisee or make a transfer that is one of a series of transfers which taken together would constitute the transfer of a controlling interest.
In practical terms, this means that if a Healthsource Chiropractic franchisee wants to sell their franchise to someone else, or if the ownership structure of the franchisee business changes significantly, they need to get approval from Healthsource Chiropractic. This is a common provision in franchise agreements, as the franchisor wants to ensure that any new owner meets their standards and is capable of running the business successfully.
The franchisee must apply to Healthsource Chiropractic for approval of such Transfer and sign the forms and procedures that Healthsource Chiropractic has in effect at that time. The person or entity to whom the franchisee wishes to make the Transfer must apply to Healthsource Chiropractic for acceptance as a franchisee, and the franchisee must submit all of the information and documentation required for Healthsource Chiropractic to evaluate the proposed Transfer and to confirm that all of the conditions are satisfied.