Can Healthsource Chiropractic contest the validity of a regulator's required amendment to the Healthsource Chiropractic Agreement?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic retains the right to contest the validity of any amendment to the franchise agreement required by a state regulator. Even if a state regulator mandates a change to the agreement, and that amendment is attached to the agreement, Healthsource Chiropractic is not prevented from challenging the amendment's validity, enforceability, or applicability. This right to contest can be exercised in any legal action related to the agreement, including actions concerning its rescission or termination.

This provision offers Healthsource Chiropractic some flexibility and protection. It ensures that the franchisor can challenge regulatory requirements that it believes are unfounded or detrimental to the franchise system. However, it's important to note that this does not guarantee Healthsource Chiropractic will prevail in such a challenge; it simply preserves their right to bring the challenge.

For a prospective franchisee, this clause indicates that the franchise agreement may be subject to amendments based on state regulations, but that Healthsource Chiropractic reserves the right to dispute those amendments. This could lead to uncertainty or legal disputes that might affect the franchisee's operations. It would be prudent for a potential franchisee to discuss with Healthsource Chiropractic their history of dealing with regulatory amendments and any specific concerns they have about regulations in their state.