Does the developer waive the right to claim punitive damages from Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree to waive any
claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees agree to waive claims for damages if an injunction or specific performance order is later determined to have been issued improperly.
Specifically, Healthsource Chiropractic is entitled to temporary and permanent injunctions and orders for specific performance, without needing to post a bond, to enforce provisions regarding the use of marks, non-disclosure, non-solicitation, non-disparagement, and non-competition obligations. These measures can also be used to prevent actions that violate laws, endanger the public, or harm the goodwill associated with Healthsource Chiropractic franchises. If Healthsource Chiropractic obtains such an injunction or order, the franchisee is responsible for the costs associated with obtaining it, including attorney's fees, investigation costs, court costs, and other expenses.
The franchisee explicitly agrees to waive any claims for damages if it is later determined that the injunction or specific performance order was issued improperly. This means that even if a court later finds that the injunction should not have been granted, the franchisee cannot seek damages from Healthsource Chiropractic for any harm suffered during the period the injunction was in effect. This clause protects Healthsource Chiropractic from potential lawsuits by franchisees who believe they were wrongly subjected to an injunction or specific performance order.