Upon termination or expiration of the HealthSource Chiropractic franchise, what unpaid amounts must be paid to HealthSource Chiropractic or its affiliates?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1 Payment of Amounts Owed to HealthSource Chiropractic. You agree to pay us within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts due to us are determined, all amounts owed to us or our affiliates which are then unpaid including, without limitation, any unpaid Initial Franchise Fee, any unpaid
Continuing Franchise Fees, and any termination fee, damages, costs or expenses owed by you pursuant to Section 15.3, together with any audit costs and expenses owed by you pursuant to Section 13.2.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must pay all outstanding amounts owed to HealthSource Chiropractic or its affiliates. This includes any unpaid Initial Franchise Fee, Continuing Franchise Fees, and any termination fee.
Additionally, franchisees are responsible for any damages, costs, or expenses owed as a result of termination, as well as any audit costs and expenses. These payments must be made within five days after the termination or expiration date, or any later date when the amounts due are determined.
This clause ensures that HealthSource Chiropractic recovers all outstanding financial obligations upon the end of the franchise relationship. It is important for prospective franchisees to understand these potential costs and ensure they have a clear understanding of the conditions under which termination fees and other expenses may be incurred.