Upon receipt by Healthsource Chiropractic, are the initial fees considered fully earned and non-refundable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the initial fees and expenditures described in this Item are: (i) uniformly calculated and imposed on our franchisees; and (ii) payable in lump sum. All of the fees are deemed fully earned upon receipt and non-refundable.
You must pay to us a lump sum initial franchise fee upon signing your Franchise Agreement. The initial franchise fee for Start-up Clinics is an amount equal to $60,000.00 for the first franchise purchased. The Initial Franchise Fee does not include the fee to purchase our optional programs with your franchise. The Initial Franchise Fee is fully earned by us when paid, and is not refundable in whole or in part under any circumstances.
If we grant you the right to open multiple Clinics under a Development Agreement, you must pay us a one-time Development Fee immediately upon execution of your Development Agreement. Your Development Fee will depend on the number of Clinics we grant you the right to open within the Site Selection Area and is calculated as follows:
| Development Fee | Number of Franchised Clinics |
|---|---|
| $ 110,000.00 | Two (2) Franchised Clinics |
| $ 45,000 per unit | Three (3) to Five (5) Franchised Clinics |
| $ 40,000 per unit | Six (6) to Nine (9) Franchised Clinics |
| $ 35,000 per unit | Ten (10) or more Franchised Clinics |
Source: Item 5 — Initial Fees (FDD pages 15–16)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, all initial fees are deemed fully earned upon receipt and are non-refundable. This applies to both the Initial Franchise Fee and the Development Fee. Specifically, the Initial Franchise Fee for a start-up clinic is $60,000 for the first franchise.
The Development Fee, which is required if a franchisee is granted the right to open multiple clinics under a Development Agreement, is also non-refundable. The Development Fee varies depending on the number of clinics the franchisee is authorized to open. For example, the Development Fee is $110,000 for two franchised clinics. For three to five clinics, the fee is $45,000 per unit; for six to nine clinics, it is $40,000 per unit; and for ten or more clinics, it is $35,000 per unit.
This non-refundable policy is a standard practice in franchising, as these fees are intended to compensate Healthsource Chiropractic for the initial costs and efforts involved in granting the franchise. However, prospective franchisees should carefully consider this policy and ensure they are fully committed to the franchise before paying any initial fees, as these fees will not be returned under any circumstances.