Does the Healthsource Chiropractic amendment specify any conditions under which the Development Agreement can be terminated by the franchisee?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 9 — TERM AND TERMINATION
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- TERM. This Agreement will commence as of the date of signing and shall continue thereafter until terminated in accordance with this Agreement.
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- TERMINATION BY HEALTHCORE. In addition to HealthCore's right to immediately suspend or terminate service as elsewhere provided in this Agreement, HealthCore shall have the right, upon thirty (30) days' prior written notice to Customer, to terminate this Agreement. Service shall terminate on the last day of the month following HealthCore's notice of termination.
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- TERMINATION BY CUSTOMER. Customer will have the right, after the first one hundred eighty (180) days this Agreement is in effect, to terminate this Agreement upon thirty (30) days' prior written notice to HealthCore if Customer's HealthSource Chiropractic franchise has terminated or expired. Service shall terminate on the last day of the month following Customer's notice of termination.
4.TERMINATION FOR CEASING TO BE A HEALTHSOURCE FRANCHISEE IN GOODSTANDING.
In the event that Customer ceases to be a franchisee in good standing with HealthSource Chiropractic, this Agreement is subject to suspension and/or termination upon notice to Customer, if HealthSource Chiropractic notifies HealthCore that Customer is not in good standing under their franchise agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document outlines specific conditions under which a customer, who is also a Healthsource Chiropractic franchisee, can terminate their agreement with HealthCore. According to Article 9, Term and Termination, the customer has the right to terminate the agreement after the first 180 days, provided they give HealthCore 30 days prior written notice. This termination right is specifically tied to the status of the customer's Healthsource Chiropractic franchise; the customer can only exercise this termination right if their Healthsource Chiropractic franchise has already been terminated or has expired. Service termination will occur on the last day of the month following the customer's notice.
This clause provides a degree of flexibility for Healthsource Chiropractic franchisees who also utilize HealthCore's services, allowing them to discontinue those services if their franchise agreement ends. However, it's important to note that this termination right is contingent on the prior termination or expiration of the Healthsource Chiropractic franchise itself. A franchisee cannot simply terminate the HealthCore agreement without the underlying franchise agreement also being terminated or expired.
Additionally, the agreement can be terminated if the customer ceases to be a franchisee in good standing with Healthsource Chiropractic. In such cases, the agreement is subject to suspension or termination upon notice to the customer, provided Healthsource Chiropractic notifies HealthCore that the customer is not in good standing under their franchise agreement. This condition underscores the interconnectedness of the HealthCore agreement and the franchisee's standing within the Healthsource Chiropractic franchise system.