To what extent does the developer waive the right to claim punitive damages from Healthsource Chiropractic?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the developer waives the right to claim punitive damages from Healthsource Chiropractic to the fullest extent permitted by law. This waiver includes any right to or claim for punitive, exemplary, incidental, indirect, special, or consequential damages, including lost profits, arising from any cause, whether based in contract, negligence, strict liability, tort, or otherwise. In the event of a dispute, the developer's recovery is limited to actual damages.

This waiver means that a developer entering into an agreement with Healthsource Chiropractic is giving up the ability to seek certain types of damages that go beyond compensating for direct losses. Punitive damages, for example, are intended to punish the wrongdoer and are typically awarded in cases of egregious misconduct. By waiving these types of damages, the developer's potential financial recovery in a dispute with Healthsource Chiropractic is capped at the amount of actual, direct losses incurred.

This type of waiver is significant because it can limit the developer's legal recourse in the event of a dispute with Healthsource Chiropractic. While it does not prevent the developer from suing for breach of contract or other causes of action, it does restrict the types of damages that can be recovered. Prospective developers should carefully consider the implications of this waiver and consult with legal counsel to understand their rights and obligations under the agreement.

It is important for prospective developers to understand that this waiver applies to any cause of action, regardless of whether it is based on contract, negligence, or other legal theories. This broad waiver underscores the importance of carefully evaluating the franchise opportunity and conducting thorough due diligence before entering into an agreement with Healthsource Chiropractic.