What sections of the Healthsource Chiropractic Franchise Agreement outline maintenance, appearance, and remodeling requirements for Healthsource Chiropractic franchises?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
10. HEALTHSOURCE CHIROPRACTIC FRANCHISE OPERATING STANDARDS.
- 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 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Section 10.1 of the Franchise Agreement details the operating standards related to the condition and appearance of the franchise. This section mandates that franchisees maintain the franchise, its equipment, furniture, furnishings, signs, and premises according to Healthsource Chiropractic's standards. These standards are designed to ensure the franchise aligns with the image of an efficiently operated business offering high-quality services, cleanliness, and courteous service.
Specifically, franchisees must undertake thorough cleaning, repainting, and redecorating of both the interior and exterior of the premises at reasonable intervals. They are also responsible for interior and exterior repairs, as well as the repair or replacement of any damaged, worn-out, or obsolete equipment, furniture, furnishings, and signs. Any material alterations to the premises or the appearance of the franchise require Healthsource Chiropractic's advance written approval, and failure to obtain this approval can result in Healthsource Chiropractic rectifying the alterations at the franchisee's expense.
Furthermore, Healthsource Chiropractic can require franchisees to replace or add new equipment to meet changing standards or new service methods. Franchisees may also be required to engage in remodeling, expansion, redecorating, or refurnishing of the premises to reflect changes in Healthsource Chiropractic operations, provided that there are at least two years remaining on the current term and that Healthsource Chiropractic has implemented the changes in at least 25% of its similarly situated HealthSource Chiropractic and affiliate-owned clinics, with a plan to extend the changes to the remaining clinics.