What did Healthsource Chiropractic agree to do in order to resolve the matter with the California Commissioner?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
The Commissioner of Financial Protection and Innovation of the State of California v. HealthSource Chiropractic, Inc. On July 20, 2021, we entered into a Consent Order with the California Commissioner of Financial Protection and Innovation (the "Commissioner"). The Commissioner determined that our 2017 and 2018 disclosure documents failed to contain a required disclosure concerning Mr. Brozek's personal bankruptcy and therefore violated Section 31200 of the California Franchise Investment Law. In order to resolve this matter we agreed to desist and refrain from the violation described above. Mr. Brozek is no longer employed by us.
Source: Item 3 — Litigation (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic entered into a Consent Order with the California Commissioner of Financial Protection and Innovation on July 20, 2021. The Commissioner determined that Healthsource Chiropractic's 2017 and 2018 disclosure documents did not include a required disclosure about Mr. Brozek's personal bankruptcy, which violated Section 31200 of the California Franchise Investment Law.
To resolve the issue, Healthsource Chiropractic agreed to stop the violation mentioned above. The FDD also notes that Mr. Brozek is no longer employed by Healthsource Chiropractic.
This resolution indicates the importance of accurate and complete disclosures in franchise documents, especially regarding the backgrounds of key personnel. Franchisees should ensure they receive and review all required disclosures before investing in a Healthsource Chiropractic franchise.