Can the arbitrator further limit discovery during arbitration with Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Arbitration Discovery. Discovery under the arbitration will be limited to the following for each side: (i) three depositions totaling 12 hours; (ii) six interrogatories each consisting of no more than 12 questions (with no subparts); and (iii) three document requests. The discovery may also be limited in any other manner as specified by the arbitrator, who will limit discovery to the greatest extent possible consistent with basic fairness.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the arbitrator has the authority to further limit discovery during arbitration. The standard discovery process is limited to three depositions totaling 12 hours, six interrogatories each with no more than 12 sub-questions, and three document requests for each side. However, the arbitrator can impose additional limits on discovery.
This clause gives the arbitrator broad discretion to manage the discovery process, potentially reducing the time and expense associated with arbitration. While this could streamline the process, it also carries the risk that a franchisee may not be able to obtain all the information they believe is necessary to present their case fully. The arbitrator is directed to limit discovery to the greatest extent possible consistent with basic fairness.
For a prospective Healthsource Chiropractic franchisee, this means they should be prepared for the possibility of a highly streamlined discovery process if a dispute goes to arbitration. They should consider the implications of limited discovery and how it might affect their ability to gather evidence and build a case. It would be prudent to discuss this arbitration clause with legal counsel to fully understand the potential impact on their rights and options in case of a dispute with Healthsource Chiropractic.