What constitutes grounds for immediate termination of the Healthsource Chiropractic development agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that Customer ceases to be a franchisee in good standing with HealthSource Chiropractic, this Agreement is subject to suspension and/or termination upon notice to Customer, if HealthSource Chiropractic notifies HealthCore that Customer is not in good standing under their franchise agreement.
In addition, if, in the opinion of our legal counsel, any provision of this Agreement is contrary to law, then this Agreement shall remain in full force and effect and you and we agree to negotiate in good faith an amendment that would make this Agreement conform to the applicable legal requirements. If you and we are unable to reach such an agreement within 30 days after notice of the issue is given to the other party, or if fundamental changes to this Agreement are required to make it conform to the legal requirements, then we reserve the right to terminate this Agreement upon notice to you, in which case neither party shall have any liability to the other but all of your post-termination obligations set forth in Section 16 shall apply.
If, by operation of law or otherwise, any fees contemplated by this Agreement cannot be based upon gross revenues, then you and we agree to negotiate in good faith an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement, then HealthSource Chiropractic reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set forth in Section 16 shall apply.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, HealthCore has the right to immediately suspend or terminate service if a customer ceases to be a franchisee in good standing with HealthSource Chiropractic. This action can be taken upon notice to the customer if HealthSource Chiropractic informs HealthCore that the customer is not in good standing under their franchise agreement. This implies that maintaining good standing as a HealthSource Chiropractic franchisee is critical to avoid immediate termination of the service agreement with HealthCore.
Additionally, Healthsource Chiropractic retains the right to terminate the agreement if any provision is deemed contrary to law by their legal counsel. In such cases, both parties are expected to negotiate in good faith to amend the agreement and align it with legal requirements. However, if an agreement cannot be reached within 30 days of notification, or if fundamental changes are necessary, Healthsource Chiropractic can terminate the agreement. This clause protects Healthsource Chiropractic from being bound by unlawful terms and allows for termination if legal compliance cannot be achieved through reasonable adjustments.
Furthermore, Healthsource Chiropractic can terminate the agreement if any fees cannot be based on gross revenues due to legal or other operational reasons. In such a scenario, both parties are expected to negotiate an alternative fee arrangement in good faith. However, if an agreement on an alternative fee structure cannot be reached, Healthsource Chiropractic reserves the right to terminate the agreement. This provision ensures that Healthsource Chiropractic can maintain a viable revenue model even if the original fee structure becomes untenable.