When is the initial franchise fee for Healthsource Chiropractic due?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: Initial Fees]
You must pay to us a lump sum initial franchise fee upon signing your Franchise Agreement. The initial franchise fee for Start-up Clinics is an amount equal to $60,000.00 for the first franchise purchased. The Initial Franchise Fee does not include the fee to purchase our optional programs with your franchise. The Initial Franchise Fee is fully earned by us when paid, and is not refundable in whole or in part under any circumstances.
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.
If we grant you the right to open multiple Clinics under a Development Agreement, you must pay us a one-time Development Fee immediately upon execution of your Development Agreement. Your Development Fee will depend on the number of Clinics we grant you the right to open within the Site Selection Area and is calculated as follows:
| Development Fee | Number of Franchised Clinics |
|---|---|
| $ 110,000.00 | Two (2) Franchised Clinics |
| $ 45,000 per unit | Three (3) to Five (5) Franchised Clinics |
| $ 40,000 per unit | Six (6) to Nine (9) Franchised Clinics |
| $ 35,000 per unit | Ten (10) or more Franchised Clinics |
Source: Item 5 — Initial Fees (FDD pages 15–16)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the initial franchise fee is due as a lump sum upon signing the Franchise Agreement. For a start-up clinic, this fee is $60,000 for the first franchise purchased. This fee is considered fully earned by Healthsource Chiropractic upon payment and is non-refundable.
Healthsource Chiropractic may offer alternative payment arrangements in certain cases, allowing franchisees to pay a non-refundable deposit to reserve a protected territory. 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 remaining balance when signing the Franchise Agreement. This deposit is not refundable but will be applied toward the Initial Franchise Fee if all requirements to purchase a franchise are met within the specified time. Deposits cannot be made earlier than 14 days after receiving the Franchise Disclosure Document, and Healthsource Chiropractic does not guarantee this payment arrangement will be available to all franchisees.
If a franchisee is granted the right to open multiple clinics under a Development Agreement, they must pay a one-time Development Fee immediately upon execution of the Development Agreement. The Development Fee varies depending on the number of clinics the franchisee is authorized to open. For example, the Development Fee is $110,000 for two franchised clinics. For three to five clinics, the fee is $45,000 per unit; for six to nine clinics, it is $40,000 per unit; and for ten or more clinics, it is $35,000 per unit. The Development Fee does not include the cost of optional programs and is non-refundable once paid to Healthsource Chiropractic.