When is the Healthsource Chiropractic Termination Fee due?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
you fail to submit required reports or financial statements. |
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Reporting Fee | $100 per week | 10th day of the month following any month for which any required report is not timely submitted. | Payable if any report or other information required to be submitted to us is received by us after the established deadline. |
| Returned Check Fee | $100 | As incurred | Due each time a check you write to us is dishonored. |
| Supplier and Product Evaluation Fee | Cost of inspection and test of product sample (currently $500-$700) | On demand | Payable if we inspect or test product samples from any proposed supplier nominated by you (see Item 8). |
| Insurance | Amount of unpaid premiums and related costs | On demand | Payable if you fail to maintain required insurance coverage and we obtain coverage for you. |
| Replacement of Operations Manual | An amount set by us; currently $250 | As incurred | Payable if your copy of the Operations Manual is lost, destroyed, or significantly damaged. |
| Renewal Fee | $10,000.00 | Upon renewal | Payable upon signing the renewal Franchise Agreement. |
| Transfer Fee | $10,000.00 | Before transfer completed | Applies to any transfer of the Franchise Agreement, the franchise, or a controlling interest in the franchise. You must pay this fee to us concurrently with the execution of a transfer agreement, including a general release in favor of us, our affiliates, and our and their officers, directors, employees and agents (see Exhibit I). |
| Type of Fee (1) | Amount | Due Date | Remarks |
| ------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Legal Costs and Attorney's Fees | All legal costs and attorneys' fees incurred by us | As incurred | Payable if we must enforce the Franchise Agreement, or defend our actions related to, or against your breach of, the Franchise Agreement. |
| Injunction or Order of Specific Performance | All amounts incurred by us in obtaining an injunction or specific performance, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses and any damages we incur as a result of your breach. | As incurred | Payable if we obtain an injunction or order of specific performance against you to (1) enforce the provisions of the Franchise Agreement relating to your use of the Marks and non-disclosure, non solicitation, non-disparagement, and non-competition obligations set forth in Section 9 of the Franchise Agreement; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or HealthSource Chiropractic franchises; or (3) prevent any other irreparable harm to our interests. |
| Indemnification | All amounts (including attorneys' fees) incurred by us or otherwise required to be paid | As incurred | Payable to indemnify us, our affiliates, and our and their respective owners, officers, directors, employees, agents, successors, and assigns against all claims, liabilities, costs, and expenses, whether asserted by third parties or us, related to your acts, omissions, ownership and operation of your franchise. |
| Alterations Fee | All amounts incurred by us | As incurred | Payable if we rectify any alterations improvements made to the Clinic without our prior approval. |
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Computer Software/ Hardware Installation Fee | All amounts we incur (i) by installing, providing, supporting, modifying, and enhancing any proprietary software or hardware that we develop and license to you or (ii) by providing Computer System-related maintenance and support services that we or our affiliates provide to you | As incurred | Payable if we (i) install, provide, support, modify or enhance software or hardware we developer and license to you or (ii) provide computer system maintenance and support services that we or our affiliates provide to you. |
| Electronic or Hard Copies of Marketing Materials | Our cost | As incurred | There may be a charge for electronic or hard copies of marketing materials in order to reimburse us for creative costs and expenses. |
| Franchise Maintenance and Refurbishing | All amounts incurred by us | As incurred | Payable if we repair, maintain, or refurbish the franchise after you fail to correct deficiencies of which we give notice to you. |
| De Identification | All amounts incurred by us | As incurred | Payable if we de-identify the franchise upon its termination or expiration. |
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, there is no mention of a "Termination Fee" in Item 6 which details other fees. The document does list various fees that a franchisee may incur during the course of the franchise agreement, such as a Late Reporting Fee of $100 per week if reports are not submitted on time, a Returned Check Fee of $100 each time a check is dishonored, and a Renewal Fee of $10,000 payable upon signing a renewal Franchise Agreement. A Transfer Fee of $10,000 is due before the transfer is completed.
Other fees include a Supplier and Product Evaluation Fee, Insurance costs if the franchisee fails to maintain required coverage, and a fee for Replacement of the Operations Manual. Legal costs, injunction costs, indemnification, alterations fees, computer software/hardware installation fees, and costs for marketing materials may also be incurred. Franchise Maintenance and Refurbishing fees may also apply.
Since a Termination Fee is not listed, a prospective Healthsource Chiropractic franchisee should inquire with the franchisor about any fees associated with terminating the franchise agreement, under what circumstances such a fee might be charged, and the amount of such a fee. This information is crucial for understanding the full financial implications of the franchise agreement and potential exit strategies.