What are the consequences if a Healthsource Chiropractic Licensed Provider becomes bankrupt or insolvent?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee is adjudged bankrupt, becomes insolvent, or makes a general assignment for the benefit of creditors, it constitutes a default under the Franchise Agreement.

This default allows Healthsource Chiropractic to terminate the Franchise Agreement. If the agreement is terminated due to the franchisee's default, Healthsource Chiropractic retains all rights described in the agreement and has access to other available legal or equitable remedies. This includes the right to withhold performance as detailed in Section 15.4 of the agreement and the right to recover damages for lost profits.

Healthsource Chiropractic may choose to withhold certain services if the franchisee is not in full compliance with their obligations. These actions include denying access to the Healthsource Chiropractic website or Intranet, removing the franchise from the business locator page on the website, removing the franchise from referral lists, removing the franchise from lists for vendor discounts, and removing the franchise from national or alliance programs. The withholding of these services does not constitute a breach of the agreement by Healthsource Chiropractic, nor does it waive their right to terminate the agreement later for the same or any other default.

All obligations within the agreement that are meant to survive termination will remain in effect even after the agreement ends, until they are fully satisfied or naturally expire. This includes covenants outlined in Article 9 of the agreement.