Under what conditions must a Healthsource Chiropractic franchisee apply for approval to transfer their franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| by you to discontinue development of the Clinics within the Site Selection Area; you become insolvent or are adjudicated bankrupt, or if any action is taken by you, or by others against the you, under any insolvency, bankruptcy or reorganization act, or if you make an assignment for the benefit or creditors or a receiver is appointed by you; and any Franchise Agreement that is entered into in order to fulfill your development obligations under the Development Agreement is terminated or subject to termination by us, pursuant to the terms of that Franchise Agreement. | |||
| i. | Developer's obligations on termination/ nonrenewal | Not Applicable | Not Applicable |
| j. | Assignment of contract by franchisor | Section 8 | We have the right to transfer or assign the Development Agreement and all or any part of our rights, duties or obligations to any person or legal entity without your consent. |
| k. | "Transfer" by developer – definition | Section 8 | Any transfer in you (if you are an entity) or your rights/obligations under the Development Agreement. |
| l. | Developer's approval of transfer by developer | Section 8 | You may not transfer any rights or obligations under the Development Agreement without our prior written consent. |
| m. | Conditions for franchisor's approval of transfer | Not Applicable | Not Applicable |
| n. |
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, a franchisee must seek prior written consent from Healthsource Chiropractic before transferring any rights or obligations under the Development Agreement. This requirement applies to any transfer within the franchisee entity itself, if the franchisee is a business entity, or to the franchisee's rights and obligations outlined in the Development Agreement.
For a Healthsource Chiropractic franchisee, this means that any change in ownership or control of the franchise, or any attempt to assign the responsibilities and benefits of the Development Agreement to another party, necessitates formal approval from Healthsource Chiropractic. This provision allows Healthsource Chiropractic to maintain control over who operates and develops franchises within their system.
In the event of the death or disability of a Healthsource Chiropractic franchisee, the executor, administrator, or other personal representative is required to transfer the franchise interest within 12 months. However, all such transfers remain subject to the standard transfer provisions outlined in the Franchise Agreement, meaning Healthsource Chiropractic's approval is still required. This ensures that even in unforeseen circumstances, the transfer adheres to Healthsource Chiropractic's standards and requirements for new ownership.