What constitutes 'dishonest, unethical or other conduct' that could lead to termination of the Healthsource Chiropractic agreement?

According to the 2025 Healthsource Chiropractic FDD, engaging in 'dishonest, unethical, or other conduct' that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of your Franchised Business, the Marks, or the System can lead to the termination of the franchise agreement. This is in addition to other causes for termination.

Specifically, if a franchisee or any of their Principal Owners are convicted of or plead no contest to a felony, or are convicted of or plead no contest to any crime or offense that is likely to adversely affect the reputation of Healthsource Chiropractic, the Franchise, and/or the goodwill associated with the Marks, it can also lead to termination.

It is important to note that Healthsource Chiropractic retains significant discretion in determining what conduct meets this standard, and the determination is based on whether the conduct is 'reasonably likely' to have a negative impact. This clause gives Healthsource Chiropractic broad latitude to terminate the agreement if they believe the franchisee's actions could damage the brand's reputation. Prospective franchisees should carefully consider this provision and seek clarification from Healthsource Chiropractic regarding specific examples of conduct that could trigger termination.