When renewing a Healthsource Chiropractic franchise, is an initial franchise fee required?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ns of this Agreement up to the date of expiration, and not just on those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, HealthSource Chiropractic, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, franchisees are not required to pay an initial franchise fee upon renewal of their franchise agreement. However, to renew the franchise, the franchisee, along with their Principal Owners, must execute the then-current form of Franchise Agreement and any related ancillary agreements. These agreements may be modified to reflect that they pertain to a renewal franchise.
While the initial franchise fee is waived, a renewal fee of $10,000.00 is required when signing the renewal Franchise Agreement. The terms of the renewal Franchise Agreement and any other required agreements may differ significantly from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms.
Additionally, the franchisee and their Principal Owners must execute general releases, in a form satisfactory to Healthsource Chiropractic, of any and all claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents. This means that franchisees must be willing to release Healthsource Chiropractic from any potential legal liabilities as a condition of renewing their franchise agreement.