What constitutes a curable default that could lead to termination of the Healthsource Chiropractic Development Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 6.1 | The term begins on the effective date and ends on the earlier of the date you open the last Clinic you are required to open under your Development Schedule or the expiration of your Development Schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
| c. | Requirements for franchisee to renew or extend | Not Applicable | Not Applicable |
| d. | Termination by franchisee | Not Applicable | Franchisees may terminate the agreements under any grounds permitted by state law. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with cause | Section 6.2 | We may terminate your Development Agreement with cause as described in (g)-(h) of this Item 17 Chart. |
| g. | "Cause" defined – curable defaults | Section 6.2 | We may terminate the Development Agreement if you fail to meet your development obligations under the Development Agreement du |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a curable default that could lead to the termination of the Development Agreement occurs if the developer fails to meet their development obligations during the Development Period, including any monetary default. To avoid termination, the developer must cure the default within 30 days of receiving notice from Healthsource Chiropractic.
This means that if a Healthsource Chiropractic developer falls behind on their agreed-upon schedule for opening new clinics or fails to make required payments, they have a limited time to rectify the situation. The 30-day cure period provides an opportunity for the developer to catch up on their obligations and prevent the termination of their Development Agreement.
It is important for prospective Healthsource Chiropractic developers to understand the development obligations outlined in the Development Agreement and to maintain open communication with the franchisor. This will allow them to address any potential issues promptly and avoid falling into default. The ability to cure a default within the specified timeframe offers some protection, but it is crucial to proactively manage the development process and meet all obligations to ensure the long-term success of the development agreement.