Does the Healthsource Chiropractic agreement allow a customer to assign their agreement to another party?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 Transfer by HealthSource Chiropractic. You represent that you have not signed this Agreement in reliance on any owner, officer, or employee remaining with us in that capacity. We may change our ownership or form at any time in our sole discretion. This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document does not explicitly address whether a customer can assign their agreement to another party. The document focuses on the obligations of the franchisee and Healthsource Chiropractic, particularly regarding termination, transfer of interests, and intellectual property. There is discussion of the franchisee's responsibilities upon termination, including the potential assignment of telephone numbers and URLs to Healthsource Chiropractic, but this pertains to the franchisee's assets, not customer agreements.
Item 14.3 discusses the ability of Healthsource Chiropractic to transfer the agreement without restriction, indicating a degree of flexibility for the franchisor. However, this section does not provide any information regarding the customer's ability to transfer their agreement. The document outlines various requirements for franchisees, such as maintaining insurance, managing payments, and protecting confidential information, but these stipulations do not clarify the customer's rights regarding assignment.
Therefore, a prospective Healthsource Chiropractic franchisee should directly ask the franchisor about the policy on customer agreement assignments to fully understand the customers' rights and obligations. Understanding this policy is crucial for managing customer relationships and ensuring compliance with the franchise agreement.