In the Healthsource Chiropractic Amendment, what does the term 'you' refer to in the Washington Amendment?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In In re: Franchise No Poaching Provisions, HealthSource Chiropractic, Inc., State of Washington, King County Superior Court No. 19-2-27562-6 SEA, on October 18, 2019, the Attorney General of the State of Washington alleged certain provisions contained in
HealthSource's prior versions of the franchise agreement contained "no-poach" provisions, and also alleged these provisions could constitute a violation of the State of Washington's Consumer Protection Act, RCW 19.86.030. Specifically, HealthSource's franchise agreement previously contained language that prohibited a franchisee from soliciting or hiring employees who worked for HealthSource during the term of the franchise agreement, or who worked for that particular franchise location if the current franchise owner sold the clinic and left the HealthSource system.
HealthSource and the State of Washington entered into an Assurance of Discontinuance whereby HealthSource agreed to not enforce any "no-poach" provisions contained in any existing franchise agreements, to amend franchise agreements with entities within the State of Washington to remove any "no-poach" provisions, and to not include any "no-poach" provisions in franchise agreements in the future. The Assurance of Discontinuance resolved all issues raised by the State of Washington against HealthSource, and HealthSource has fully performed its duties under the Assurance of Discontinuance.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
I am unable to provide the specific definition of "you" within a Washington Amendment to the Healthsource Chiropractic franchise agreement, according to the 2025 Franchise Disclosure Document. While there is a reference to a legal case in Washington State regarding "no-poach" provisions, the document does not include a specific Washington Amendment that defines the term "you".
However, the FDD excerpts do contain examples of similar amendments for other states like New York, California, and Illinois. In those amendments, the term "you" is used to refer to the "Developer," which is the party entering into the Development Agreement with HealthSource Chiropractic, LLC. The Development Agreement grants the developer the right to develop a certain number of clinics within a defined area.
To determine the exact meaning of "you" in the context of a Washington Amendment, a prospective Healthsource Chiropractic franchisee should consult the specific Washington Amendment document or seek clarification from the franchisor directly. They should inquire whether "you" refers to the "Franchisee," the "Developer," or another entity, as this definition is crucial for understanding the rights and obligations outlined in the amendment.