For Healthsource Chiropractic franchisees, what is the consequence of not fully implementing the designated computer system within acceptable timeframes?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
or your to sign the Service Agreement. The terms and conditions of any such Service Agreement are hereby incorporated herein by reference (the "Additional Terms and Conditions"). A copy of any such Service Agreement shall be attached to this Agreement as Exhibit 4.
- c. Your full implementation of our computer system and software requirements, including our designated billing system, is a crucial part of your Clinic's start-up and operation, and you and we agree that the Computer System requirements are a top priority. Accordingly, if you do not fully implement our designated Computer System, including required software (called "going live") within acceptable timeframes, you will be required to pay additional fees to us, as follows:
- o If you have not "gone live" within two (2) months after the conclusion of your initial training program, you will be required to pay a fee of $500.00 per month for each month thereafter, due and payable on the first (1st) day of each calendar month in such period with no pro-rations for partial months; and
- o If you have not "gone live" within six (6) months, the fee will be inc
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, implementing the designated computer system, including the required software and billing system, is a critical part of a franchisee's clinic start-up and operation. If a franchisee fails to fully implement the designated computer system, including going live with the required software, within acceptable timeframes, they will incur additional fees.
Specifically, if a Healthsource Chiropractic franchisee has not "gone live" within two months after completing their initial training program, they will be required to pay a fee of $500 per month. This fee is due on the first day of each calendar month, without any proration for partial months. If the franchisee still has not "gone live" within six months after the conclusion of the initial training program, the monthly fee increases to $1,000, commencing in the sixth month.
It is important to note that these fees are in addition to any other rights and remedies that Healthsource Chiropractic may exercise under Section 15 or any other provision of the Franchise Agreement. This means that Healthsource Chiropractic could potentially pursue other actions, such as termination of the agreement, in addition to charging these monthly fees. Prospective franchisees should prioritize the timely implementation of the computer system to avoid these additional costs and potential further repercussions.