Are all transfers of a Healthsource Chiropractic franchise interest subject to the provisions in the Franchise Agreement regulating transfers?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| of the new owner to pay any amounts payable under the Franchise Agreement or any new Franchise Agreement that we may require the new owner to sign in connection with the transfer, and containing a general release of any claims that you may have against us. (see Exhibit I). | ||
| n. Our right of first refusal to | Not applicable. | Not applicable. |
| acquire your business | ||
| o. Our option to purchase your | Not applicable. | Not applicable. |
| business | ||
| p. Death or disability of franchisee | Section 14.6 | Executor, administrator, or other personal representative must transfer interest within 12 months; all transfers are subject to provisions in Franchise Agreement regulating transfers. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, transfers of a franchise interest due to the death or disability of the franchisee are subject to the provisions outlined in the Franchise Agreement that regulate transfers. Specifically, if the franchisee dies or becomes disabled, their executor, administrator, or other personal representative must transfer the franchise interest within 12 months. However, this transfer is not exempt from the standard transfer requirements detailed in the Franchise Agreement.
This means that even in the event of death or disability, the transfer of the Healthsource Chiropractic franchise must adhere to the standard transfer procedures. These procedures likely involve franchisor approval, transfer fees, and meeting certain qualifications. The estate or representative of the franchisee will need to navigate the same requirements as any other potential transferor.
For a prospective Healthsource Chiropractic franchisee, this highlights the importance of understanding the transfer provisions in the Franchise Agreement. It also underscores the need to have a succession plan in place that addresses how the franchise will be handled in the event of death or disability. This plan should consider the financial and legal implications of transferring the franchise and ensure that the estate or representative is prepared to meet the franchisor's requirements.