What expenses must I reimburse Healthsource Chiropractic for if a transfer is not consummated?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
sation owed to, and the travel and living expenses (if the Initial Training program is not held virtually in the future, and including all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;
- d. if your lease for the Premises requires it, the lessor must have consented to the assignment
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a transfer of your franchise is not completed for any reason, you are required to reimburse Healthsource Chiropractic for any reasonable expenses they incurred while investigating and processing the proposed new owner. This means that Healthsource Chiropractic can seek reimbursement for costs associated with evaluating the potential buyer, reviewing their qualifications, and handling the transfer application, should the deal fall through.
This condition is important for prospective franchisees to consider, as these expenses can potentially add up. It is in the franchisee's best interest to ensure that any potential buyer is serious and qualified before initiating the transfer process to minimize the risk of incurring these reimbursement costs. The FDD specifies that a non-refundable transfer fee of $10,000 is due concurrently with the execution of the Transfer Agreement.
In the franchise industry, it is common for franchisors to charge transfer fees and to require franchisees to cover the franchisor's costs associated with evaluating and processing a transfer application. This helps to protect the integrity of the franchise system by ensuring that only qualified and suitable candidates are approved as new franchisees. Franchisees should carefully review the transfer requirements and associated costs outlined in the FDD before attempting to sell their franchise.