To whom are security deposits paid when opening a Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of | Conversion Clinic | Start-up | Method of | When Due | To Whom |
|---|---|---|---|---|---|
| Expenditure | Clinic | Payment | Payment Is To Be Made | ||
| Initial Franchise Fee (1) | $60,000 to $60,000 | $60,000 to $60,000 | Lump sum, unless otherwise agreed | When you sign the Franchise Agreemen t | Us |
| Security Deposits (2) | $0 to $7,000 | $3,800 to $9,500 | Before opening | Before opening | Landlord and /or utility companies |
Source: Item 7 — Estimated Initial Investment (FDD pages 24–28)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, security deposits are paid to landlords and/or utility companies. These security deposits are part of the initial investment required to open either a conversion clinic or a start-up clinic. For a conversion clinic, the estimated security deposits range from $0 to $7,000, while for a start-up clinic, the range is $3,800 to $9,500. These payments are due before the clinic opens.
Security deposits are a common expense when leasing commercial spaces. Landlords typically require a security deposit to cover potential damages to the property or unpaid rent. Utility companies may also require deposits to ensure payment for services like electricity, water, and gas. The specific amount of the security deposit can vary depending on factors such as the location of the clinic, the size of the leased space, and the creditworthiness of the franchisee.
Prospective Healthsource Chiropractic franchisees should budget accordingly for these security deposits and factor them into their overall initial investment. It is important to review the lease agreement and utility contracts carefully to understand the specific deposit requirements and payment terms. Franchisees should also inquire about the possibility of negotiating lower deposit amounts or providing alternative forms of security, such as a letter of credit.
It's also important to note that the FDD states that all expenses payable to Healthsource Chiropractic and third parties are non-refundable, "except as you may arrange for utility deposits and other payments." This suggests that while the initial payments are non-refundable by default, franchisees may be able to arrange for refunds of utility deposits and other payments directly with the utility companies or other third parties, assuming all obligations are met.