What is the maximum evaluation fee that Healthsource Chiropractic can charge for a proposed supplier evaluation?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like to purchase or lease any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier or the proposed supplier may submit its own request. We may inspect the proposed supplier's facilities, and require that product samples from the proposed supplier be delivered for testing either directly to us or any independent certified laboratory that we designate. We also may require you (or the proposed supplier requesting the evaluation) to pay us an evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test (see Item 6) to make the evaluation. We will approve or disapprove your proposed supplier within 60 days of receiving all of the information that we require for the evaluation. We reserve the right to periodically re-inspect the facilities and products or services of any approved supplier, and revoke our approval if the supplier does not continue to meet any of our criteria.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee wants to purchase or lease items from a supplier not already approved by Healthsource Chiropractic, they (or the supplier) may have to pay an evaluation fee. This fee is intended to cover the reasonable costs of inspecting the supplier's facilities and the actual costs of product testing.
Healthsource Chiropractic specifies that the evaluation fee will not exceed the reasonable cost of the inspection and the actual cost of the test. Healthsource Chiropractic has the right to inspect the facilities, and require that product samples from the proposed supplier be delivered for testing either directly to them or any independent certified laboratory that they designate.
Healthsource Chiropractic will approve or disapprove the proposed supplier within 60 days of receiving all required information for the evaluation. Healthsource Chiropractic also reserves the right to periodically re-inspect approved suppliers and revoke approval if they no longer meet the criteria. This process ensures that all suppliers meet Healthsource Chiropractic's standards, maintaining consistency and quality across all franchises.