Does Healthsource Chiropractic require franchisees to pay an evaluation fee for proposed suppliers?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like to purchase or lease any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier or the proposed supplier may submit its own request. We may inspect the proposed supplier's facilities, and require that product samples from the proposed supplier be delivered for testing either directly to us or any independent certified laboratory that we designate. We also may require you (or the proposed supplier requesting the evaluation) to pay us an evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test (see Item 6) to make the evaluation. We will approve or disapprove your proposed supplier within 60 days of receiving all of the information that we require for the evaluation. We reserve the right to periodically re-inspect the facilities and products or services of any approved supplier, and revoke our approval if the supplier does not continue to meet any of our criteria.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already approved by Healthsource Chiropractic, they may be required to pay an evaluation fee. This fee is intended to cover the costs associated with inspecting the proposed supplier's facilities and testing their products.
Healthsource Chiropractic retains the right to inspect the facilities of any proposed supplier and may require product samples for testing, either directly or through an independent certified laboratory. The evaluation fee charged to the franchisee (or the proposed supplier) will not exceed the reasonable cost of the inspection and the actual cost of the testing. Healthsource Chiropractic will then approve or disapprove the proposed supplier within 60 days of receiving all required information for the evaluation.
Healthsource Chiropractic also reserves the right to periodically re-inspect the facilities and products or services of any approved supplier and may revoke approval if the supplier fails to continue meeting their criteria. This ensures ongoing compliance with Healthsource Chiropractic's standards. This process allows Healthsource Chiropractic to maintain quality control over its supply chain while providing franchisees with the option to suggest alternative suppliers, subject to approval and associated costs.