When is the Healthsource Chiropractic transfer fee due?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ance written approval for the Transfer must be obtained. In the event of any minority owner transfer, you will promptly notify us of the change in ownership or Interests. Your formal partnership,
corporation or other formation documents and all stock certificates, partnership units or other evidence of ownership must recite or bear a legend reflecting the transfer restrictions of this Paragraph 14.4.
- e. If you propose to Transfer this Agreement, the Franchise or its assets, or any Interest, or if any of your Principal Owners proposes to Transfer a controlling Interest in you or make a Transfer that is one of a series of Transfers which taken together would constitute the Transfer of a controlling Interest in you, then you must apply to us for approval of such Transfer sign such forms and procedures as we have in effect at that time, the person or entity to whom you wish to make the Transfer ("Proposed New Owner") must apply to us for acceptance as a franchisee, and you must submit to us all of the information and documentation required for us to evaluate the proposed Transfer and to confirm that all of the conditions set forth in Section 14.5 below have been, or will be, satisfied.
- 14.5 Conditions for Approval of Transfer. If you and your Principal Owners are in full compliance with this Agreement, both monetary and otherwise, we will not unreasonably withhold our approval of a Transfer that meets all the applicable requirements of this Section 14. The Proposed New Owner must be of good moral character and otherwise meet our then applicable standards for HealthSource Chiropractic Clinic franchisees.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, if a franchisee proposes to transfer their agreement, franchise, or assets, they must apply to Healthsource Chiropractic for approval. As part of this process, the franchisee must pay any outstanding amounts owed to Healthsource Chiropractic and its affiliates. This includes any unpaid Initial Franchise Fee, Continuing Franchise Fees, and Advertising Fees. These payments must be made before or at the time of the transfer.
Specifically, Section 14.5(b) states that all outstanding payments must be settled before or at the time of the transfer. This condition ensures that Healthsource Chiropractic receives all due compensation before a new owner takes over the franchise. The prospective new owner must also meet certain qualifications, such as having sufficient business experience and completing the initial training program.
In summary, the transfer will not be approved until all outstanding fees are paid. This requirement protects Healthsource Chiropractic's financial interests and ensures that the new franchisee is adequately prepared to operate the business.