To what extent are transfer fees collectable by Healthsource Chiropractic?
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, a transfer fee of $10,000 is required when a franchisee proposes to transfer their franchise agreement. This fee is non-refundable and must be paid concurrently with the execution of the Transfer Agreement.
In addition to the transfer fee, the franchisee is responsible for reimbursing Healthsource Chiropractic for any reasonable expenses incurred while investigating and processing the proposed new owner, even if the transfer is not completed for any reason. This means that a franchisee could incur costs beyond the initial $10,000 transfer fee.
Several conditions must be met for Healthsource Chiropractic to approve a transfer. These conditions include ensuring the proposed new owner has sufficient business experience and financial resources, that all outstanding payments to Healthsource Chiropractic are made, and that the new owner's personnel complete the initial training program. The franchisor must also approve the terms of the transfer, and the premises must be in good condition. These stipulations ensure that the new franchisee will maintain Healthsource Chiropractic's standards.
Furthermore, both the transferring franchisee and the new owner must sign agreements that include a general release of claims against Healthsource Chiropractic and acknowledgment of restrictive covenants. The new owner's payment obligations to the seller must be subordinate to their obligations to Healthsource Chiropractic. These conditions protect Healthsource Chiropractic's interests and ensure a smooth transition.