For a Healthsource Chiropractic franchise, can the Continuing Franchise Fee be different from what is described, and if so, how is this reflected?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ns 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 the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Continuing Franchise Fee may change when renewing the franchise agreement. Specifically, the terms of the franchise agreement that a franchisee must execute upon renewal, and any other agreements that 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.
This means that while the initial franchise agreement outlines the Continuing Franchise Fees, Healthsource Chiropractic reserves the right to modify these fees at the time of renewal. The franchisee's right to renew is contingent upon accepting these new terms. This is a significant point for prospective franchisees to consider, as it introduces uncertainty regarding the long-term costs of operating the franchise.
In addition to the potential for increased Continuing Franchise Fees, franchisees must also pay a renewal fee of $10,000 and execute general releases of claims against Healthsource Chiropractic and its affiliates. This highlights the importance of carefully reviewing the renewal agreement and understanding all associated costs and obligations before committing to another term. Franchisees should seek legal and financial advice to assess the implications of any changes to the franchise agreement.