When is the initial franchise fee due to Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of | Conversion Clinic | Start-up | Method of | When Due | To Whom |
|---|---|---|---|---|---|
| Expenditure | Clinic | Payment | Payment Is To Be Made | ||
| Initial Franchise Fee (1) | $60,000 to $60,000 | $60,000 to $60,000 | Lump sum, unless otherwise agreed | When you sign the Franchise Agreemen t | Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–28)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $60,000 to $60,000 for both conversion and start-up clinics, is due when you sign the Franchise Agreement. This fee is paid directly to Healthsource Chiropractic in a lump sum, unless otherwise agreed upon.
For prospective franchisees, this means that the $60,000 franchise fee must be paid upfront when the franchise agreement is signed. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial support and training. The FDD also indicates that this fee is generally non-refundable, so it's crucial to carefully evaluate the opportunity before signing the agreement.
It is important to note that the timing of other expenses associated with opening a Healthsource Chiropractic franchise varies. For example, security deposits are due before opening, payments to approved vendors for site selection and construction management are due as incurred, and leasehold improvement costs are due before opening. Understanding when each expense is due is essential for managing the initial investment effectively.