What rights does Healthsource Chiropractic have to inspect a franchise location?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Condition and Appearance of the Franchise. You agree that:
- a. neither the Franchise nor the Premises will be used for any purpose other than the operation of the Franchise in compliance with this Agreement;
- b. you will maintain the condition and appearance of the Franchise; its equipment, furniture, furnishings, and signs; and the Premises in accordance with our standards and consistent with the image of a HealthSource Chiropractic Clinic franchise as an efficiently operated business offering high quality services, and observing the highest standards of cleanliness, sanitation, efficient, courteous service and pleasant ambiance, and in that connection will take, without limitation, the following actions during the Term of this Agreement: (1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete equipment, furniture, furnishings and signs;
- c. you will not make any material alterations to the Premises or the appearance of the Franchise, as originally developed, without our advance written approval. If you do so, we have the right, at our option and at your expense, to rectify alterations we have not previously approved;
- d. you will promptly replace or add new equipment when we reasonably specify in order to meet changing standards or new methods of service;
- e. on notice from us, you will engage in remodeling, expansion, redecorating and/or refurnishing of the Premises and the Franchise to reflect changes in the operations of HealthSource Chiropractic franchises that we prescribe and require of new franchisees, provided that (1) no material changes will be required unless there are at least 2 years remaining on the Initial Term or any renewal Term of this Agreement (all actual changes will be subject to our approval); and (2) we have completed the proposed change in at least twenty-five percent (25%) of all similarly situated HealthSource Chiropractic and affiliate-owned HealthSource Chiropractic Clinics, if there are any, and have undertaken a plan to make the proposed change in the balance of such HealthSource Chiropractic and affiliate-owned Clinics;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document outlines specific conditions regarding the appearance and alterations of the franchise location. According to the agreement, Healthsource Chiropractic franchisees must maintain the condition and appearance of their franchise, including equipment, furniture, furnishings, signs, and the premises, according to Healthsource Chiropractic's standards. This is to ensure consistency with the image of an efficiently operated HealthSource Chiropractic clinic that offers high-quality services and maintains cleanliness, sanitation, courteous service, and a pleasant ambiance. Franchisees are expected to undertake actions such as thorough cleaning, repainting, redecorating, and repairs at reasonable intervals.
Healthsource Chiropractic franchisees cannot make any material alterations to the premises or the appearance of the franchise without prior written approval from Healthsource Chiropractic. If unapproved alterations are made, Healthsource Chiropractic has the right to rectify these alterations at the franchisee's expense. Additionally, franchisees must replace or add new equipment when reasonably specified by Healthsource Chiropractic to meet changing standards or new methods of service.
Furthermore, Healthsource Chiropractic may require franchisees to engage in remodeling, expansion, redecorating, or refurnishing of the premises to reflect changes in the operations of Healthsource Chiropractic franchises. However, these material changes will only be required if there are at least two years remaining on the Initial Term or any renewal term of the agreement, and Healthsource Chiropractic has completed the proposed change in at least 25% of all similarly situated Healthsource Chiropractic and affiliate-owned Healthsource Chiropractic Clinics, with a plan to implement the change in the remaining clinics. This ensures that changes are reasonably implemented and aligned with the overall brand standards of Healthsource Chiropractic.