What happens if a Healthsource Chiropractic franchise owner appears eligible for renewal?
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 Franchise Agreement. You and your Principal Owners must also execute general releases, in a form satisfactory to us, of any and all claims against us and our affiliates, and our and their respective owners, officers, directors, employees, and agents.
3. DEVELOPMENT AND OPENING OF THE FRANCHISE
- 3.1 Site Selection Area; Site Approval; Lease or Purchase of Premises.
- You will use your best efforts to seek and select a proposed site for the Premises.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee is eligible for renewal, they, along with their Principal Owners, must execute the current form of the Franchise Agreement and any related ancillary agreements. These agreements may be different from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms.
To complete the renewal, the franchisee must pay a renewal fee of $10,000 concurrently with signing the renewal Franchise Agreement. Additionally, the franchisee and their Principal Owners must execute general releases, in a form satisfactory to Healthsource Chiropractic, of any and all claims against Healthsource Chiropractic and its affiliates, as well as their respective owners, officers, directors, employees, and agents.
Healthsource Chiropractic also stipulates that renewal is conditional on the franchisee's continued compliance with all terms and conditions of the existing agreement up to the expiration date, not just the conditions outlined in any deficiency notice issued six months prior. If Healthsource Chiropractic decides not to renew the franchise, they will provide a notice stating the reasons for the refusal.