In addition to liquidated damages, what other damages must a franchisee pay Healthsource Chiropractic for breaching Section 9?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that precise damages are difficult to calculate for a breach or violation of the provisions of Section 9 of this Agreement. Therefore, if you breach or violate Section 9 of this Agreement it is agreed that we would suffer actual damages of at least Fifty Thousand Dollars. In addition to any liquidated damages permitted herein, you must pay to us any and all actual damages in excess of the liquidated amount, plus all attorneys' fees incurred by us as a direct or indirect result of any breach or violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee breaches Section 9 of the agreement, they must pay Healthsource Chiropractic any actual damages exceeding the liquidated damages amount. Additionally, the franchisee is responsible for covering all attorneys' fees incurred by Healthsource Chiropractic as a direct or indirect result of the breach.
Section 9 likely contains critical obligations, and a breach could result in significant financial repercussions beyond the initial liquidated damages. The franchisee's responsibility extends to all legal costs Healthsource Chiropractic incurs due to the franchisee's violation, which could potentially amount to a substantial sum depending on the complexity and duration of any legal proceedings.
Prospective franchisees should carefully review Section 9 of the Healthsource Chiropractic franchise agreement to fully understand their obligations and the potential financial consequences of any breach. Understanding these terms is crucial for assessing the risks associated with the franchise and ensuring they can meet all contractual requirements.