What outstanding payments must be made to Healthsource Chiropractic before a 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 seeking to transfer their franchise must meet specific financial obligations to gain approval. The franchisee must pay any outstanding amounts owed to Healthsource Chiropractic and its affiliates. This includes payments for purchases made from Healthsource Chiropractic or its affiliates, along with any unpaid Initial Franchisee Fees, Continuing Franchise Fees, and Advertising Fees.
In addition to settling outstanding debts, the transferring franchisee must also pay a non-refundable transfer fee of $10,000.00 to Healthsource Chiropractic upon executing the Transfer Agreement. Furthermore, the franchisee is responsible for reimbursing Healthsource Chiropractic for any reasonable expenses incurred during the investigation and processing of the proposed new owner, especially if the transfer is not finalized for any reason.
These financial requirements ensure that Healthsource Chiropractic maintains financial stability and that the transfer process is taken seriously by the franchisee. The fees and reimbursements cover the administrative and legal costs associated with evaluating and approving a transfer, while the settlement of outstanding debts protects Healthsource Chiropractic's revenue stream. Prospective franchisees should be aware of these costs and obligations when considering a transfer of their Healthsource Chiropractic franchise.