Does the Healthsource Chiropractic franchise agreement allow for transfers of interest in a divorce proceeding?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
14.4 No Transfer Without Approval.
- 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)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the agreement does not explicitly address transfers of interest in the event of a divorce proceeding. However, the FDD does state that any transfer of interest requires approval from Healthsource Chiropractic.
Specifically, Paragraph 14.4 states that if a franchisee or any of their principal owners proposes to transfer the agreement, the franchise, or any interest in it, they must apply to Healthsource Chiropractic for approval. The person or entity to whom the transfer is proposed must also apply for acceptance as a franchisee. This suggests that a transfer of interest due to divorce would be subject to this approval process.
To gain a comprehensive understanding of how Healthsource Chiropractic handles such situations, a prospective franchisee should directly inquire with the franchisor about their specific policies and procedures regarding the transfer of franchise interests during divorce proceedings. This will help clarify the conditions under which a transfer might be approved and any potential implications for the franchise agreement.