Is Healthsource Chiropractic required to provide advance notice before inspecting a franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. if you under-report gross revenues for any period, as determined by an audit or inspection, in an amount greater than five percent (5%);
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document does not explicitly state whether Healthsource Chiropractic is required to provide advance notice before inspecting a franchise. However, the document does state that Healthsource Chiropractic can conduct audits or inspections to determine if a franchisee has under-reported gross revenues. If an audit or inspection determines that a franchisee has under-reported gross revenues by more than five percent (5%), it can be grounds for termination of the franchise agreement.
Additionally, Healthsource Chiropractic can enter the premises to make changes if a franchisee fails to disassociate the premises from the Healthsource Chiropractic image after termination of the agreement. This can occur if the franchisee does not take required actions within 10 days after notice from Healthsource Chiropractic.
A prospective franchisee should inquire with Healthsource Chiropractic about the circumstances and frequency of inspections, and whether advance notice is typically provided. Understanding the specific conditions under which inspections occur will help a franchisee maintain compliance and avoid potential disputes.