What costs and expenses must a Healthsource Chiropractic franchisee cover when indemnifying Healthsource Chiropractic?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are responsible for all loss, damage, and contractual liability to third persons originating from or connected with the operation of the franchise. This also includes all claims or demands for damages to property or for injury, illness, or death of persons directly or indirectly resulting from the franchise's operation.

Specifically, the franchisee agrees to defend, indemnify, and hold Healthsource Chiropractic harmless from any such claims, losses, or damages. This obligation to indemnify Healthsource Chiropractic survives the termination, expiration, or non-renewal of the Franchise Agreement.

In practical terms, this means that if a customer or employee is injured at the Healthsource Chiropractic clinic, or if the clinic's operations cause damage to a third party's property, the franchisee is responsible for covering the costs of defending against any claims and paying any resulting damages. This is a significant responsibility, and prospective franchisees should carefully consider the potential risks and ensure they have adequate insurance coverage to protect themselves against such liabilities. It is also important to consult with legal and insurance professionals to fully understand the scope of this indemnification obligation.