Under what conditions can Healthsource Chiropractic require a franchisee to have audited or reviewed financial statements prepared by a certified public accountant?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee's failure to submit financial statements, reports, or other data, information, or supporting records when due constitutes a breach of the franchise agreement. This failure can occur at any time during the term of the agreement.

Specifically, if a Healthsource Chiropractic franchisee fails to provide the required financial documentation, the franchisor can issue a written notice. If the franchisee does not rectify the situation, it can lead to further action by Healthsource Chiropractic.

This requirement ensures that Healthsource Chiropractic can monitor the financial health and performance of its franchisees, maintain brand consistency, and enforce compliance with the franchise agreement. Franchisees should maintain meticulous records and adhere to the reporting schedule to avoid potential penalties or termination of their franchise agreement.