Is the initial franchise fee for Healthsource Chiropractic refundable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
All of the fees are deemed fully earned upon receipt and non-refundable.
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 generally not refundable. The standard initial franchise fee for a start-up clinic is $60,000, and the FDD clearly states that this fee is fully earned upon payment and is not refundable under any circumstances. This means that once a franchisee pays the initial fee to Healthsource Chiropractic, they cannot get it back, even if they later decide not to open the franchise. This is a fairly standard practice in the franchise industry, as the initial fee covers the franchisor's costs of granting the franchise and providing initial support.
However, the FDD does mention an exception where Healthsource Chiropractic may allow a potential franchisee to pay a non-refundable deposit to reserve a protected territory for a specific time. If the franchisee meets all requirements to purchase the franchise within that time, the deposit will be applied towards the initial franchise fee. It is important to note that this deposit is also non-refundable, regardless of whether the franchisee ultimately signs the Franchise Agreement. This deposit arrangement is not guaranteed and is subject to Healthsource Chiropractic's approval.
Prospective Healthsource Chiropractic franchisees should carefully consider these terms before paying any fees. It is crucial to conduct thorough due diligence and ensure they are fully committed to opening a franchise before paying the initial fee or any deposits, as these payments are generally non-refundable. Additionally, franchisees should inquire about the specific conditions and requirements for the deposit arrangement, as it is not available to all franchisees.