Are class action lawsuits or consolidated arbitration proceedings permitted under the Healthsource Chiropractic franchise agreement?

Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, Section 17.9 states that the agreement is subject to binding arbitration. However, the document does not explicitly address whether class action lawsuits or consolidated arbitration proceedings are permitted.

This means that the franchise agreement includes a clause requiring franchisees to resolve disputes through arbitration, which is a private dispute resolution process, instead of going to court. Arbitration is generally faster and less expensive than litigation, but it may also limit a franchisee's ability to appeal an unfavorable decision.

Because the FDD does not specify whether class action lawsuits or consolidated arbitration are allowed, prospective franchisees should seek clarification from Healthsource Chiropractic regarding their policy on these types of proceedings. Understanding the franchisor's stance on class actions and consolidated arbitration is crucial for assessing the potential risks and benefits of investing in a Healthsource Chiropractic franchise.