What articles of the Healthsource Chiropractic agreement survive termination?
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)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, several obligations within the franchise agreement continue even after the agreement expires or is terminated. Specifically, all obligations that expressly or by their nature are meant to survive the termination will remain in effect until they are completely fulfilled or naturally expire.
Notably, the franchisee's covenants outlined in Article 9 of the agreement, which likely pertain to confidentiality, non-competition, and protection of Healthsource Chiropractic's proprietary information, remain in force after termination to the extent detailed in that article. This means a franchisee cannot disclose confidential information or operate a competing business as outlined in Article 9 after the franchise agreement ends.
Additionally, the franchisee's responsibility to indemnify Healthsource Chiropractic for any losses, damages, or contractual liabilities to third parties that originate from the operation of the franchise will also survive termination or expiration of the agreement. This includes any claims related to property damage, injury, illness, or death. This ensures that Healthsource Chiropractic is protected from liabilities even after the franchise agreement has ended.