What actions constitute a Healthsource Chiropractic franchisee surrendering control of the premises, leading to default?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
16.3 De-Identification. If you retain possession of the Premises, you agree to completely remove or modify, at your sole expense, any part of the interior and exterior decor that we deem necessary to disassociate the Premises with the image of a HealthSource Chiropractic franchise, including any signage, posters, furniture, equipment, products, or display units bearing the Marks. If you do not take the actions we request within 10 days after notice from us, we have the right to enter the Premises and make the required changes at your expense, and you agree to reimburse us for those expenses on demand. You irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the document outlines the obligations of the franchisee upon termination or expiration of the franchise agreement, including actions related to the premises. Specifically, if a franchisee retains possession of the premises after termination, they must remove or modify any interior and exterior decor that Healthsource Chiropractic deems necessary to disassociate the premises from the Healthsource Chiropractic brand. This includes signage, posters, furniture, equipment, products, or display units bearing the brand's marks.
If the franchisee fails to take these actions within 10 days after receiving notice from Healthsource Chiropractic, the franchisor has the right to enter the premises and make the required changes at the franchisee's expense. The franchisee agrees to reimburse Healthsource Chiropractic for these expenses on demand and irrevocably appoints Healthsource Chiropractic as their attorney-in-fact to take these actions if they fail to do so themselves within the specified timeframe. This ensures that the premises no longer appear to be associated with the Healthsource Chiropractic brand after the franchise agreement has ended.
In practical terms, this means that a franchisee must be prepared to invest additional funds post-termination to remove branding elements and restore the premises to a neutral state. Failure to comply with these requirements can result in Healthsource Chiropractic taking control of the de-identification process and billing the franchisee for the associated costs. This clause protects Healthsource Chiropractic's brand identity and prevents any potential confusion or misrepresentation after a franchise agreement concludes.