Under what circumstances does HealthSource Chiropractic have the right to inspect a franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
10. HEALTHSOURCE CHIROPRACTIC FRANCHISE OPERATING STANDARDS.
- 10.1 Condition and Appearance of the Franchise. You agree that:
- a. neither the Franchise nor the Premises will be used for any purpose other than the operation of the Franchise in compliance with this Agreement;
- b. you will maintain the condition and appearance of the Franchise; its equipment, furniture, furnishings, and signs; and the Premises in accordance with our standards and consistent with the image of a HealthSource Chiropractic Clinic franchise as an efficiently operated business offering high quality services, and observing the highest standards of cleanliness, sanitation, efficient, courteous service and pleasant ambiance, and in that connection will take, without limitation, the following actions during the Term of this Agreement: (1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete equipment, furniture, furnishings and signs;
- c. you will not make any material alterations to the Premises or the appearance of the Franchise, as originally developed, without our advance written approval. If you do so, we have the right, at our option and at your expense, to rectify alterations we have not previously approved;
- d. you will promptly replace or add new equipment when we reasonably specify in order to meet changing standards or new methods of service;
- e. on notice from us, you will engage in remodeling, expansion, redecorating and/or refurnishing of the Premises and the Franchise to reflect changes in the operations of HealthSource Chiropractic franchises that we prescribe and require of new franchisees, provided that (1) no material changes will be required unless there are at least 2 years remaining on the Initial Term or any renewal Term of this Agreement (all actual changes will be subject to our approval); and (2) we have completed the proposed change in at least twenty-five percent (25%) of all similarly situated HealthSource Chiropractic and affiliate-owned HealthSource Chiropractic Clinics, if there are any, and have undertaken a plan to make the proposed change in the balance of such HealthSource Chiropractic and affiliate-owned Clinics;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, the franchisee must maintain the condition and appearance of the franchise, including equipment, furniture, furnishings, and signs, according to HealthSource Chiropractic's standards. This ensures the franchise aligns with the image of an efficiently operated business offering high-quality services, cleanliness, and courteous service.
HealthSource Chiropractic has the right to ensure that the franchisee is observing these standards. The franchisee must perform thorough cleaning, repainting, and redecorating of the interior and exterior of the premises at reasonable intervals, as well as interior and exterior repairs. Damaged, worn-out, or obsolete equipment, furniture, furnishings, and signs must be repaired or replaced.
Additionally, the franchisee cannot make any material alterations to the premises or the appearance of the franchise without HealthSource Chiropractic's advance written approval. If unapproved alterations are made, HealthSource Chiropractic has the right, at its option and at the franchisee's expense, to rectify them. HealthSource Chiropractic can also require the franchisee to replace or add new equipment to meet changing standards or new methods of service. Franchisees may also be required to remodel, expand, redecorate, or refurnish the premises to reflect changes in the operations of HealthSource Chiropractic franchises, provided certain conditions are met, including that at least two years remain on the Initial Term or any renewal term and that the changes have been implemented in at least 25% of similarly situated HealthSource Chiropractic and affiliate-owned clinics.