What outstanding payments must be made by the franchisee for Healthsource Chiropractic before the transfer can be approved?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Owner must be of good moral character and otherwise meet our then applicable standards for HealthSource Chiropractic Clinic franchisees. For any proposed Transfer, all of the following conditions must be met before or at the time of the Transfer:
- a. in our belief and judgment, the Proposed New Owner must have sufficient business experience, aptitude, and financial resources to operate the Franchise;
- b. you must pay any amounts owed for purchases from us and our affiliates, and any other amounts owed to us or our affiliates which are unpaid, including any Initial Franchisee Fee, Continuing Franchise Fees, and Advertising Fees;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must first satisfy all outstanding financial obligations to Healthsource Chiropractic and its affiliates. This includes paying any unpaid amounts for purchases made from Healthsource Chiropractic or its affiliates.
Specifically, the franchisee must pay any outstanding Initial Franchisee Fees, Continuing Franchise Fees, and Advertising Fees. Additionally, the franchisee is required to pay a non-refundable transfer fee of $10,000.00 at the time of executing the Transfer Agreement. The franchisee must also reimburse Healthsource Chiropractic for any reasonable expenses they incur while investigating and processing the proposed new owner, especially if the transfer is not completed for any reason.
These requirements ensure that Healthsource Chiropractic receives all due payments before a transfer is finalized. This protects the brand's financial interests and ensures that the new franchisee starts with a clean financial slate. Franchisees should be aware of these costs and obligations when considering a transfer.