Under what section of the Healthsource Chiropractic agreement is modification of payments discussed?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.8 Modification of Payments. If, by operation of law or otherwise, any fees contemplated by this Agreement cannot be based upon gross revenues, then you and we agree to negotiate in good faith an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement, then HealthSource Chiropractic reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set forth in Section 16 shall apply.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Section 6.8, titled "Modification of Payments," addresses the circumstances under which payment terms may be altered.
This section specifies that if any fees outlined in the agreement cannot be based on gross revenues due to legal or other reasons, Healthsource Chiropractic and the franchisee must negotiate an alternative fee arrangement in good faith. This is particularly relevant as laws and regulations governing revenue-based fees can change, potentially impacting the original agreement terms.
However, if Healthsource Chiropractic and the franchisee cannot agree on a new fee structure, Healthsource Chiropractic retains the right to terminate the agreement. Should termination occur, the post-termination obligations detailed in Section 16 of the agreement will apply, which may include specific requirements regarding the use of Healthsource Chiropractic's marks, transfer of telephone numbers, and compliance with restrictive covenants.