What constitutes a criminal conviction that could lead to default for a Healthsource Chiropractic Licensed Provider?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 Licensed Provider will be deemed to be in default under this Agreement, and Management Company will have the right to terminate this Agreement effective upon delivery of notice of termination to Licensed Provider, subject only to any right to cure to the extent expressly set forth below, if:
(d) Licensed Provider or, if Licensed Provider is an entity, any of its owners, is convicted of or pleads no contest to a felony or are convicted or plead no contest to any crime or offense that is likely to adversely affect the reputation of Management Company, the Clinic Management Business, HealthSource, and/or the goodwill associated with the System or the Marks, or otherwise engages in any dishonest, unethical or other conduct that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of Management Company, the Clinic Management Business, the System or the Marks;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, a Licensed Provider can be deemed in default if they, or any of its owners if the Licensed Provider is an entity, are convicted of or plead no contest to a felony.
Additionally, a default can occur if the Licensed Provider or its owners are convicted of or plead no contest to any crime or offense that is likely to adversely affect the reputation of the Management Company, the Clinic Management Business, HealthSource, and/or the goodwill associated with the System or the Marks. This also extends to engaging in any dishonest, unethical, or other conduct that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of the Management Company, the Clinic Management Business, the System, or the Marks.
This means that a Healthsource Chiropractic franchisee's actions, and those of their owners, can have significant consequences for their franchise agreement. Any criminal conviction, regardless of whether it is a felony or a lesser offense, could potentially lead to termination if it harms the reputation or goodwill of the Healthsource Chiropractic brand. This clause gives Healthsource Chiropractic broad discretion to terminate the agreement based on the franchisee's conduct.