factual

Can the arbitrator further limit discovery in a Healthsource Chiropractic arbitration?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

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 the 2025 Healthsource Chiropractic Franchise Disclosure Document, the arbitrator in an arbitration proceeding has the authority to further limit discovery. The document specifies initial discovery limitations for each side, including a maximum of three depositions totaling 12 hours, six interrogatories with no more than 12 questions each (without subparts), and three document requests.

Beyond these initial limitations, the arbitrator has the discretion to impose additional limits on discovery. The FDD states that the arbitrator will limit discovery to the greatest extent possible while maintaining basic fairness. This clause grants the arbitrator broad authority to manage the discovery process and prevent it from becoming overly burdensome or costly.

For a prospective Healthsource Chiropractic franchisee, this means that the amount of information they can obtain from Healthsource Chiropractic during an arbitration may be significantly restricted. While the initial discovery limits seem defined, the arbitrator's power to further limit discovery introduces uncertainty. A franchisee should be prepared to present their case effectively within potentially tight constraints on the evidence they can gather.

This provision aims to streamline the arbitration process and control costs. However, it also carries the risk that a franchisee may not be able to fully investigate and present their claims if the arbitrator imposes stringent discovery limits. It is important for franchisees to understand this potential limitation and factor it into their decision-making process when considering a Healthsource Chiropractic franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.