Does Healthsource Chiropractic guarantee that the alternate payment arrangement for the Initial Franchise Fee will be available to all franchisees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain cases, we may permit you to make alternate arrangements for the payment of the Initial Franchise Fee; specifically, we may allow you to pay us a non-refundable deposit to reserve your Protected Territory for a stated period of time. If a deposit arrangement is agreed upon, the initial franchise fee is paid in two installments - a negotiated amount is paid when you sign our franchise deposit acknowledgement agreement, and then the balance is paid when you sign the Franchise Agreement. The deposit is not refundable, but if you fulfill all the requirements to purchase a Franchise within the stated time period, the deposit will be applied toward the Initial Franchise Fee. Approved deposits may not be made earlier than 14 days following your receipt of this Franchise Disclosure Document. Our standard forms of franchise deposit acknowledgement agreements are contained in Exhibit K. We do not guaranty that the foregoing alternate payment arrangement will be available to any particular franchisee, or that any particular franchisee will meet the characteristics and requirements we apply to determine who is eligible for such arrangement.
Source: Item 5 — Initial Fees (FDD pages 15–16)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic does not guarantee that the alternate payment arrangement for the Initial Franchise Fee will be available to all franchisees. Healthsource Chiropractic may allow franchisees to pay a non-refundable deposit to reserve their protected territory for a stated period. If this arrangement is agreed upon, the initial franchise fee is paid in two installments: a negotiated amount when signing the franchise deposit acknowledgement agreement, and the balance when signing the Franchise Agreement. The deposit is not refundable, but it will be applied toward the Initial Franchise Fee if the franchisee fulfills all requirements to purchase a franchise within the stated time.
The deposit may not be made earlier than 14 days following receipt of the Franchise Disclosure Document. The standard forms of franchise deposit acknowledgement agreements are contained in Exhibit K of the FDD.
Healthsource Chiropractic explicitly states that they do not guarantee this alternate payment arrangement will be available to any particular franchisee, nor do they guarantee that any particular franchisee will meet the requirements they apply to determine eligibility for such an arrangement. This means that while the option exists, it is subject to Healthsource Chiropractic's approval and specific franchisee qualifications. Prospective franchisees should inquire about the specific criteria for eligibility and the likelihood of being approved for this arrangement.