Under what terms and conditions can HealthSource Chiropractic reinstate the Ad Fund after termination?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have the right to terminate the Ad Fund by giving you 30 days' advance written notice. All unspent monies on date of termination will be divided between HealthSource Chiropractic and the contributing HealthSource Chiropractic Clinic franchisees in proportion to our and their respective contributions. At any time thereafter, we will have the right to reinstate the Ad Fund under the same terms and conditions as described in this Paragraph (including the
rights to terminate and reinstate the Ad Fund) by giving you thirty (30) days' advance written notice of reinstatement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 HealthSource Chiropractic Franchise Disclosure Document, HealthSource Chiropractic has the right to reinstate the Ad Fund after termination. To do so, HealthSource Chiropractic must provide franchisees with thirty (30) days' advance written notice of reinstatement. The reinstatement will occur under the same terms and conditions as previously described, including the rights to terminate and reinstate the Ad Fund again in the future.
This means that HealthSource Chiropractic retains significant control over the Ad Fund, including the ability to start and stop it with relatively short notice. For a franchisee, this implies a degree of uncertainty regarding the stability and continuity of advertising and marketing efforts. Franchisees should be aware that the Ad Fund can be reinstated at any time, potentially requiring them to contribute to it again after it has been terminated.
It is important for prospective franchisees to fully understand the implications of the Ad Fund's terms, including the conditions under which it can be terminated and reinstated, as these factors can impact their overall marketing strategy and budget. Franchisees should also inquire about the historical frequency of Ad Fund terminations and reinstatements to better assess the potential volatility of this aspect of the franchise agreement.