factual

Under what condition can Healthsource Chiropractic withhold consent to the transfer of a franchise in Minnesota?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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. For any proposed Transfer, all of the following conditions must be met before or at the time of the Transfer:
  • a. in our belief and judgment, the Proposed New Owner must have sufficient business experience, aptitude, and financial resources to operate the Franchise;
  • b. you must pay any amounts owed for purchases from us and our affiliates, and any other amounts owed to us or our affiliates which are unpaid, including any Initial Franchisee Fee, Continuing Franchise Fees, and Advertising Fees;
  • c. the Proposed New Owner's directors and such other personnel as we may designate must have successfully completed our Initial Training program and shall be legally authorized and have all licenses necessary to perform the services offered by the Franchise. The Proposed New Owner shall be responsible for any wages and compensation owed to, and the travel and living expenses (if the Initial Training program is not held virtually in the future, and including all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;
  • d. if your lease for the Premises requires it, the lessor must have consented to the assignment of the lease of the Premises to the Proposed New Owner;

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic will not unreasonably withhold approval of a transfer if the franchisee and their Principal Owners are in full compliance with the agreement, both monetarily and otherwise, and the transfer meets all applicable requirements.

Specifically, Healthsource Chiropractic can withhold approval if the Proposed New Owner does not meet the brand's standards for franchisees, lacks sufficient business experience, aptitude, or financial resources to operate the franchise. Additionally, Healthsource Chiropractic can withhold approval if the franchisee has outstanding payments owed to Healthsource Chiropractic or its affiliates, including Initial Franchisee Fees, Continuing Franchise Fees, and Advertising Fees.

Healthsource Chiropractic can also withhold approval if the Proposed New Owner's directors and designated personnel do not successfully complete the Initial Training program or lack the necessary licenses to perform the services offered by the franchise. Furthermore, if the lessor does not consent to the assignment of the premises lease to the Proposed New Owner, Healthsource Chiropractic can withhold approval. The franchisor must also approve the material terms of the transfer, including price and payment terms, and the franchise and premises must be in attractive, neat, and sanitary condition.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.