Is the initial franchise fee for a Healthsource Chiropractic franchise refundable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
sory council any operational or decision-making powers that we deem appropriate. We, or one of more of our affiliated companies or persons, may also offer separate, optional, advisory councils or groups that may have additional costs to you should you decide to participate.
6. FEES.
6.1 Initial Franchise Fee; Reference to Exhibit 1. You agree to pay us the initial franchise fee (the "Initial Franchise Fee") set forth below when you sign this Agreement. In recognition of the expenses we incur in furnishing assistance and services to you, you agree that
we will have fully earned the Initial Franchise Fee, and that is due and non-refundable when you sign this Agreement.
- a. If the Franchise you are purchasing is a Start-up Clinic, then your Initial Franchise Fee is $60,000.00. Notwithstanding the previous sentence, if Exhibit 1 states that you are signing this Agreement pursuant to your purchase of a development agreement, then your Development Fee paid pursuant thereto shall be in full satisfaction of this Agreement.
- b. If the Franchise you are purchasing is a Conversion Clinic, then your Initial Franchise Fee is $60,000.00. Notwithstanding the previous sentence, if Exhibit 1 states that you are signing this Agreement pursuant to your purchase of a development agreement, then your Development Fee paid pursuant thereto shall be in full satisfaction of this Agreement.
- c.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. The FDD states that upon signing the Franchise Agreement, Healthsource Chiropractic has fully earned the initial franchise fee, and it is due and non-refundable.
For a Start-up or Conversion Clinic franchise, the initial franchise fee is $60,000. However, if the agreement is signed pursuant to a development agreement, the development fee already paid will satisfy the initial franchise fee requirement. Any deposits previously paid will be credited against the initial franchise fee due.
This non-refundable policy is a standard practice in franchising, intended to compensate the franchisor for the initial services and expenses incurred in setting up a new franchisee. Prospective Healthsource Chiropractic franchisees should be aware that once the Franchise Agreement is signed, the initial franchise fee is non-refundable, regardless of whether the franchise ever opens or becomes successful. Therefore, it is crucial to conduct thorough due diligence before signing the agreement.