The franchise fee of $60,000 exceeds the category typical range by approximately $5,400-$20,500. How is this premium justified compared to competitor chiropractic franchises?
#1
What specifically caused the 12 unit closures in 2023 and the 11 'ceased other' exits in the same year, and were any related to franchisor support or system-level issues?
#2
The 3-year turnover rate of 26.4% is more than double the typical range. Can you provide a breakdown of why franchisees are choosing not to renew versus being terminated?
#3
System Health score is 49, below the typical range for this category. What operational or infrastructure changes are planned to improve unit performance and reduce closures?
#4
The non-compete clause is 0 years versus the typical 2 years for this category. Why was this reduced, and how does this protect your existing franchisees from competitive threats?
#5
You have only 12 termination causes listed versus the typical 15-21. What specific default scenarios are NOT included, and how would those be handled if they occurred?
#6
The 2 litigation cases where the franchisor was defendant—what were the specific allegations, and have the issues been fully resolved or do they indicate broader operational problems?
#7
Can you explain the renewal conditions that require 'premises refurbishment with no cost cap'? What has been the average cost franchisees incurred to renew, and are there cap discussions underway?
#8
The binding arbitration clause restricts disputes to Lorain County, Ohio. How would this work for franchisees located across the country, and what are typical arbitration costs franchisees have faced?
#9
The termination clause allows cure periods of only 10 days for monetary defaults. How many franchisees have been terminated for this reason, and what notice and opportunity period is provided before final termination?
#10
Ongoing Fees score is 60, below the typical 62.0. Combined with a 7% royalty and 2% ad fund, how does total cost compare to competitors, and are there any hidden or discretionary fees?
#11
Net unit growth was positive 2 units in the past year after 3 years of decline. Is this trend sustainable, and what are your unit growth targets for the next 3-5 years?
#12
What is the average age of current units, and how many are in renewal discussions versus early in their initial 10-year term?
#13
Can you provide the actual revenue and profitability data for franchisees at different unit ages to validate the reported median gross sales of $490,766?
#14
The Support & Training score of 100 is exceptional. What specific training and ongoing support distinguishes HealthSource from competitors, and how frequently is it provided?
#15
With an exclusive territory designation, how do you define territory boundaries, and have there been any encroachment disputes with existing franchisees?
#16
The renewal fee is $10,000. Are there additional fees or costs for franchise agreement amendments, technology upgrades, or system-wide initiatives at renewal?
#17
What percentage of franchisees who completed their initial 10-year term actually renewed versus exiting the system?
#18
How many of the 2 recent litigation cases involved franchisees, and what were the key issues—operational performance, fee disputes, territory disputes, or other matters?
#19
Are there any pending regulatory investigations, consumer complaints, or class action threats that aren't reflected in the disclosed litigation data?
#20