What are the obligations of a Healthsource Chiropractic franchisee regarding leasehold improvements as described in Item 8, and how does this relate to the estimated initial investment in Item 7?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ximately $22.00 per square foot to $60.00 per square foot per year. Your actual rent payments may vary, depending upon your location and your market's retail lease rates. We require that Clinics be a minimum of 1,800 square feet in size. We anticipate that HealthSource Chiropractic Clinics typically will be located in high-traffic strip malls.
- If you purchase instead of lease the premises for your Clinic, then the purchase price, down payment, interest rates, and other financing terms will determine the amount of your monthly mortgage payments.
- (16) This estimate includes 3-months' lease and maintenance fees for our required computer and billing system as described in Items 8 and 11. The low estimate is based on the usual monthly fee charged by HSWorx. in the amount of $598 per month. The higher estimate is based on whether you decide to use optional products or services from HSWorx. These amounts include up to 5 seats and is subject to the number of claims processed and other services provided by HSWorx. If you do not return the ACH draft information to HSWorx, Inc. within seven (7) days of corporate training, HSWorx will charge you $698.00 per month until you return the ACH information to them. See Franchise Agreement – Exhibit 4 for additional information. This estimate does not include fees we will charge you if your franchise is not "live" on the software system within two months post training. If you are a conversion franchise and are not "live" on the software system within two months of training, a $500 per month fee will be assessed. After month six, the fee will increase to $1,000 starting month seven.
- (17) This estimate includes your payment to us for website design, maintenance, hosting, and search engine optimization, and certain technology-related administrative expenses for the first three months of operation. See Item 8 for additional information.
- (18) Human resources and payroll services fees will vary based on employee count, frequency on which you pay employees, and additional services selected. A vendor representative will provide an exact quote for your franchise. See Item 8 for additional information rega
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, Item 7 provides estimates for the initial investment required to start a Healthsource Chiropractic Clinic, and it acknowledges that building and construction costs can vary significantly. These costs depend on factors such as the condition and size of the premises, as well as local construction costs. Item 7 also mentions that construction allowances may be available from the landlord, which could offset some of these expenses, but these allowances are not guaranteed. The franchisee is responsible for understanding that the actual costs for leasehold improvements could be higher or lower than the provided estimates, depending on their specific circumstances and location.
Item 7 includes an estimate for lease and maintenance fees for the required computer and billing system, spanning three months. The low estimate is based on HSWorx's usual monthly fee of $598, while the higher estimate accounts for optional products or services from HSWorx. These amounts cover up to 5 seats and are subject to the number of claims processed and other services provided by HSWorx. Failure to provide ACH draft information to HSWorx within seven days of corporate training results in a charge of $698 per month until the information is provided. Additionally, fees are charged if the franchise is not "live" on the software system within two months post-training: $500 per month for conversion franchises and escalating fees after six months.
Item 7 also includes an estimate for website design, maintenance, hosting, search engine optimization, and certain technology-related administrative expenses for the first three months of operation. Furthermore, it mentions that human resources and payroll services fees will vary based on employee count, pay frequency, and additional services selected, with a vendor representative providing an exact quote. These estimates and fees are related to obligations detailed in Item 8 of the FDD, which likely outlines the specific requirements and standards for these services and systems. A prospective franchisee should carefully review Item 8 to understand the full scope of these obligations and how they impact the overall initial investment.