What specific payments trigger the default clause for a Healthsource Chiropractic Licensed Provider?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 Licensed Provider will be deemed to be in default under this Agreement, and Management Company will have the right to terminate this Agreement effective upon delivery of notice of termination to Licensed Provider, subject only to any right to cure to the extent expressly set forth below, if:
(f) Licensed Provider does not pay when due any monies owed to Management Company, including the Management Fee, and does not make such payment within 2 days after written notice is given to Licensed Provider;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Licensed Provider will be considered in default of their agreement if they fail to pay monies owed to Management Company, including the Management Fee, and do not make such payment within 2 days after written notice is given to Licensed Provider. This gives the Management Company the right to terminate the agreement.
This means that if a Healthsource Chiropractic franchisee fails to pay any amount due to the Management Company, they risk having their franchise agreement terminated. However, Healthsource Chiropractic must provide a written notice of non-payment and allow a 2-day cure period. If the franchisee makes the payment within those 2 days, they will not be considered in default.
It is important for prospective Healthsource Chiropractic franchisees to understand the payment terms and ensure they have sufficient funds to cover all fees and expenses. Failure to do so could result in the termination of their franchise agreement and loss of their investment. Franchisees should maintain open communication with Healthsource Chiropractic regarding any financial difficulties to explore potential solutions and avoid default.