Does the Healthsource Chiropractic agreement require parties to seek independent legal advice?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. The insurance HealthSource Chiropractic requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by HealthSource Chiropractic. Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees are advised to seek independent legal counsel regarding insurance requirements. Specifically, Healthsource Chiropractic requires franchisees to maintain certain insurance coverages, but the document explicitly states that franchisees should consult with their own insurance agents, brokers, and attorneys to determine what additional coverages and levels of protection they may need or desire beyond what Healthsource Chiropractic specifies.
This recommendation underscores the importance of franchisees understanding their own specific risk profiles and ensuring they have adequate protection. While Healthsource Chiropractic sets minimum insurance standards, these may not be sufficient for every franchisee's unique circumstances. By consulting with their own advisors, franchisees can make informed decisions about their insurance needs and avoid potential gaps in coverage.
This approach is fairly standard in franchising, as franchisors typically set minimum requirements to protect the brand and the system, but franchisees are ultimately responsible for their own business operations and liabilities. Therefore, it is always prudent for prospective franchisees to seek independent legal and business advice before signing any franchise agreement.