Does the Healthsource Chiropractic amendment specify any conditions under which the Development Agreement can be governed by a specific state's laws?

The 2025 HealthSource Chiropractic Franchise Agreement addresses the possibility of state-specific amendments. According to the FDD, if a state regulator requires an amendment to the agreement, that amendment will be attached to the agreement. However, HealthSource Chiropractic retains the right to contest the validity, enforceability, or applicability of the regulator's required amendment in any action relating to the agreement, its rescission, or termination. This means that while state-specific regulations can lead to amendments, HealthSource Chiropractic reserves the right to challenge those amendments.

This clause ensures that HealthSource Chiropractic can adapt its franchise agreement to comply with varying state laws while also protecting its interests by retaining the option to challenge regulatory requirements. For a prospective franchisee, this means the franchise agreement could be modified based on the state in which they operate. However, it also implies that there could be legal challenges related to these state-specific amendments, potentially creating uncertainty.

It is important for potential HealthSource Chiropractic franchisees to understand the specific regulations in their state and how those regulations might affect their franchise agreement. They should also be aware of HealthSource Chiropractic's right to contest these regulations, as this could have implications for the franchisee's business operations. Franchisees should seek legal counsel to fully understand the implications of state-specific amendments and HealthSource Chiropractic's rights in this regard.