For a Healthsource Chiropractic franchise transfer, what is expressly conditioned upon the franchisee's payment of all Continuing Franchise Fees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
d 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.
- 14.5 Conditions for Approval of Transfer. If you and your Principal Owners are in full compliance with this Agreement, both monetary and otherwise, we will not unreasonably withhold our approval of a Transfer that meets all the applicable requirements of this Section 14. The Proposed New Owner must be of good moral character and otherwise meet our then applicable standards for HealthSource Chiropractic Clinic franchisees.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee's ability to transfer their franchise agreement is contingent upon meeting certain conditions. One of these conditions is that the franchisee and their Principal Owners must be in full compliance with the existing agreement, both in monetary and non-monetary terms. This means that all financial obligations, including Continuing Franchise Fees, must be fully paid up to date.
Specifically, before a transfer can be approved, the franchisee must pay any outstanding amounts owed to Healthsource Chiropractic and its affiliates. This includes not only Continuing Franchise Fees but also any amounts owed for purchases, Initial Franchise Fees, and Advertising Fees. This requirement ensures that Healthsource Chiropractic does not approve a transfer if the franchisee has outstanding financial obligations to the company.
In practical terms, a Healthsource Chiropractic franchisee looking to sell their franchise must ensure all fees are current. Failure to do so could delay or prevent the transfer. This condition protects Healthsource Chiropractic's financial interests and ensures that new owners are not inheriting a business with pre-existing debt to the franchisor.