What payment methods are Healthsource Chiropractic franchisees initially required to use for all amounts due?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) You must pay all amounts due by automatic debit, but we have the right to require you to pay all amounts due us or our affiliates by certified or cashier's check or wire transfer. After you sign the documents we require to debit your business checking account automatically for the amounts due (see Exhibit 5 to Franchise Agreement), we will debit your bank account for the Continuing Franchise Fees, Advertising Fees, and other amounts you owe us. You must make funds available for withdrawal from your account before each due date.
If you do not report your Clinic's gross revenues for any month, then we may debit your account for 120% of the Continuing Franchise Fee and Advertising Fee amounts that we debited during the previous month. If the Continuing Franchise Fee and Advertising Fee amounts we debit are less than the Continuing Franchise Fee and Advertising Fee amounts you actually owe us (once we determine the franchise's actual gross revenues for the month), then we will debit your account for the balance on the day we specify. If the Continuing Franchise Fee and Advertising Fee amounts we debit is greater than the Continuing Franchise Fee and Advertising Fee amount you actually owe us, then we will credit the excess amount, without interest, against the amount we otherwise would debit from your account during the following month.
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are initially required to pay all amounts due via automatic debit. Healthsource Chiropractic has the right to require franchisees to pay all amounts due to them or their affiliates by certified or cashier's check or wire transfer.
After signing the required documents to authorize automatic debits from their business checking account, Healthsource Chiropractic franchisees will have their bank accounts debited for Continuing Franchise Fees, Advertising Fees, and any other amounts owed. Franchisees must ensure that funds are available for withdrawal from their account before each due date to avoid any issues with payments.
If a Healthsource Chiropractic franchisee fails to report their clinic's gross revenues for any month, Healthsource Chiropractic may debit their account for 120% of the Continuing Franchise Fee and Advertising Fee amounts that were debited during the previous month. If the debited amounts are less than what is actually owed, Healthsource Chiropractic will debit the account for the balance. Conversely, if the debited amounts are greater than what is owed, the excess amount will be credited against the amount debited in the following month, without interest.