If Healthsource Chiropractic requests documents during an audit, how many days does the franchisee have to supply them?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 Payment of Amounts Owed to HealthSource Chiropractic. You agree to pay us within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts due to us are determined, all amounts owed to us or our affiliates which are then unpaid including, without limitation, any unpaid Initial Franchise Fee, any unpaid
Continuing Franchise Fees, and any termination fee, damages, costs or expenses owed by you pursuant to Section 15.3, together with any audit costs and expenses owed by you pursuant to Section 13.2.
You irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
16.3 De-Identification. If you retain possession of the Premises, you agree to completely remove or modify, at your sole expense, any part of the interior and exterior decor that we deem necessary to disassociate the Premises with the image of a HealthSource Chiropractic franchise, including any signage, posters, furniture, equipment, products, or display units bearing the Marks. If you do not take the actions we request within 10 days after notice from us, we have the right to enter the Premises and make the required changes at your expense, and you agree to reimburse us for those expenses on demand.
By signing this Agreement, you irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
If HealthSource Chiropractic chooses not to have you assign the telephone numbers to it, you may not assign the telephone number to any competitive business, use automatic forwarding to the telephone number of any competitive business, or otherwise make the telephone number directly or indirectly available to any competitive business.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document does not specify a specific timeframe for a franchisee to supply documents during an audit. However, Section 16.1 discusses payment of amounts owed to Healthsource Chiropractic after termination or expiration of the franchise agreement. It states that amounts owed, including audit costs and expenses pursuant to Section 13.2, are due within five days of termination or any later date that the amounts due are determined.
Section 16.3 discusses the franchisee's responsibility to remove any branding from the premises after termination of the franchise agreement. If the franchisee does not take the actions requested by Healthsource Chiropractic within 10 days after notice, Healthsource Chiropractic has the right to enter the premises and make the required changes at the franchisee's expense.
Section 16.5 outlines other actions required upon termination of the agreement. Specifically, the franchisee must promptly execute documents to delete listings from directories and assign telephone numbers and URLs to Healthsource Chiropractic. If the franchisee fails to do so within 10 days of termination, Healthsource Chiropractic is irrevocably appointed as the attorney-in-fact to take these actions.
Since the FDD does not specify a timeframe for providing documents during an audit, prospective franchisees should clarify this point with Healthsource Chiropractic. Understanding the expected response time for document requests during audits is crucial for maintaining compliance and avoiding potential penalties or disputes.