What is the non-refundable transfer fee required by Healthsource Chiropractic, and when is it due?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
sation owed to, and the travel and living expenses (if the Initial Training program is not held virtually in the future, and including all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;
- d. if your lease for the Premises requires it, the lessor must have consented to the assignment
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee must pay a non-refundable transfer fee of $10,000 if they propose to transfer their franchise to a new owner. This fee compensates Healthsource Chiropractic for the costs associated with investigating and processing the transfer application.
The transfer fee is due concurrently with the execution of the Transfer Agreement. In addition to the transfer fee, the franchisee must also reimburse Healthsource Chiropractic for any reasonable expenses incurred during the investigation and processing of the proposed new owner, even if the transfer is not ultimately completed. This protects Healthsource Chiropractic from incurring costs for unsuccessful transfer attempts.
These conditions are typical in franchising, as franchisors need to ensure that any new franchisee meets their standards and that the transfer process does not harm the brand. The non-refundable nature of the fee means that a franchisee will not get this money back, even if the transfer falls through, so it's important to carefully consider the likelihood of a successful transfer before proceeding.