Does the arbitration agreement for Healthsource Chiropractic survive the termination or expiration of the franchise agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
practic's exclusive remedies but will instead supplement any other equitable or legal remedies available to HealthSource Chiropractic, including the right to withhold performance as provided in Section 15.4 of this Agreement. If this Agreement is terminated because of your default, nothing in this Section 16.5 may be construed to deprive HealthSource Chiropractic of the right to recover damages as compensation for lost profits.
16.6 Continuing Obligations. All obligations of this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full or by their nature expire. Without limiting the foregoing, you acknowledge and agree that your covenants in Article 9 above survive the termination or expiration of this Agreement to the extent set forth in such Article 9.
17. ENFORCEMENT.
17.1 Invalid Provisions; Substitution of Valid Provisions.
- a.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the document does not explicitly state whether the arbitration agreement survives the termination or expiration of the franchise agreement. However, Section 16.6 addresses continuing obligations, stating that all obligations that expressly or by their nature survive termination will continue in full force and effect.
Paragraph 10.8(g) also indicates that the franchisee's obligation to defend, indemnify, and hold Healthsource Chiropractic harmless with respect to certain claims survives the termination, expiration, and non-renewal of the agreement.
To determine whether the arbitration agreement specifically survives termination or expiration, a prospective franchisee should review the specific language of the arbitration clause within the franchise agreement and seek clarification from Healthsource Chiropractic regarding its intent and enforceability post-termination.