Under what circumstances is the Healthsource Chiropractic Development Fee refundable?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Development Fee is generally non-refundable. The FDD states clearly that the Development Fee is fully earned upon payment and is not refundable, either in whole or in part, under any circumstances. This policy applies uniformly to all franchisees.

Healthsource Chiropractic requires a Development Fee when granting the right to open multiple clinics under a Development Agreement. The amount of this one-time fee depends on the number of clinics the franchisee is authorized to open within a specific Site Selection Area. The fee structure varies, with specific amounts listed for different numbers of franchised clinics. For example, the Development Fee is $110,000 for two franchised clinics. For those planning to open three to five clinics, the fee is $45,000 per unit. For six to nine clinics, it is $40,000 per unit, and for ten or more clinics, it decreases to $35,000 per unit.

Prospective Healthsource Chiropractic franchisees should be aware that this non-refundable policy is standard for the Development Fee. Franchisees should carefully consider their development plans and financial capabilities before entering into a Development Agreement, as the fee will not be returned regardless of whether all planned clinics are eventually opened. This is a common practice in franchising, as the fee compensates the franchisor for granting exclusive development rights within a specific area.