How soon after receiving the FDD can an approved deposit be made for a Healthsource Chiropractic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain cases, we may permit you to make alternate arrangements for the payment of the Initial Franchise Fee; specifically, we may allow you to pay us a non-refundable deposit to reserve your Protected Territory for a stated period of time. If a deposit arrangement is agreed upon, the initial franchise fee is paid in two installments - a negotiated amount is paid when you sign our franchise deposit acknowledgement agreement, and then the balance is paid when you sign the Franchise Agreement. The deposit is not refundable, but if you fulfill all the requirements to purchase a Franchise within the stated time period, the deposit will be applied toward the Initial Franchise Fee. Approved deposits may not be made earlier than 14 days following your receipt of this Franchise Disclosure Document. Our standard forms of franchise deposit acknowledgement agreements are contained in Exhibit K. We do not guaranty that the foregoing alternate payment arrangement will be available to any particular franchisee, or that any particular franchisee will meet the characteristics and requirements we apply to determine who is eligible for such arrangement.
Source: Item 5 — Initial Fees (FDD pages 15–16)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, an approved deposit to reserve a protected territory can be made no earlier than 14 days after receiving the Franchise Disclosure Document (FDD). This deposit is non-refundable but will be applied toward the initial franchise fee if the franchisee meets all requirements to purchase the franchise within the specified time. The initial franchise fee for a start-up clinic is $60,000.
This 14-day waiting period is a standard practice in franchising, mandated by the Federal Trade Commission (FTC) to ensure that prospective franchisees have adequate time to review the FDD and make an informed decision. The deposit arrangement is not guaranteed and is subject to Healthsource Chiropractic's approval based on specific criteria. The FDD also mentions that the deposit amount is negotiated between Healthsource Chiropractic and the franchisee.
It's important to note that the deposit is non-refundable, so a prospective Healthsource Chiropractic franchisee should carefully consider their decision before making a deposit. They should also review Exhibit K of the FDD, which contains the standard forms of franchise deposit acknowledgement agreements, to fully understand the terms and conditions of the deposit. Franchisees should also be aware that the initial franchise fee does not include the cost of optional programs.