What was the case number for the Virginia litigation involving Healthsource Chiropractic and Bernard Brozek?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ation involves us:
Public Agency Orders
Commonwealth of Virginia v HealthSource Chiropractic, Inc. and Bernard Brozek; Case No. SEC-2019-00058. On January 29, 2020, we entered into and delivered a Settlement Order with the Virginia State Corporation Commission's Division of Securities and Retail Franchising (the "Division"). The Division alleged that our 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy one of our officers, Bernard Brozek, and therefore, violated the Virginia Retail Franchising Act. We do not admit or deny the Division's allegation. In order to resolve this matter without the further cost and expense of formal proceedings, we agreed to make an offer to refund the initial franchise fees paid by the one purchaser during the subject time frame (up to a maximum of $80,000) and to pay the Division the sum of $9,000 in costs and civil penalties. We have completed making the refund to the designated purchaser and paying the required costs, Mr. Brozek reimbursed us for those payments,
Source: Item 3 — Litigation (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the case number for the Virginia litigation involving Healthsource Chiropractic, Inc. and Bernard Brozek was Case No. SEC-2019-00058. The litigation involved allegations from the Virginia State Corporation Commission's Division of Securities and Retail Franchising that Healthsource Chiropractic's 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy of one of its officers, Bernard Brozek, which the Division alleged violated the Virginia Retail Franchising Act. Healthsource Chiropractic did not admit or deny the allegations.
To resolve the matter without further formal proceedings, Healthsource Chiropractic agreed to offer refunds of initial franchise fees to the one purchaser during the timeframe in question, up to a maximum of $80,000, and to pay the Division $9,000 in costs and civil penalties. The FDD states that Healthsource Chiropractic completed making the refund to the designated purchaser and paying the required costs.
It is important to note that Bernard Brozek reimbursed Healthsource Chiropractic for those payments and is no longer employed by them. This type of disclosure is typical in franchise disclosure documents, as it informs potential franchisees of any legal issues involving the franchisor and its key personnel that could impact the franchise system.