What happens if a Healthsource Chiropractic franchise owner has deficiencies in their operation that could cause non-renewal?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise that could cause us not to renew the Franchise. If we will permit renewal, our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Franchise or of the Premises, and will specify the
time period in which those deficiencies must be corrected or other requirements satisfied. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions 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 Agreement, if a franchisee has operational deficiencies, Healthsource Chiropractic will provide a notice of non-renewal that states the reasons for refusal to renew the franchise. The franchisee will have a specific time period to correct these deficiencies or satisfy other requirements.
However, simply correcting the deficiencies outlined in the 6-month deficiency notice may not guarantee renewal. Healthsource Chiropractic requires continued compliance with all terms and conditions of the Franchise Agreement up to the expiration date for renewal.
To renew the Healthsource Chiropractic franchise, the franchisee, along with their Principal Owners, must execute the current form of the Franchise Agreement and any related ancillary agreements. The terms in the renewal agreement may differ significantly 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 and paying a renewal fee of $10,000. Additionally, the franchisee and their Principal Owners must execute general releases of all claims against Healthsource Chiropractic and its affiliates.