Does the Healthsource Chiropractic FDD state that the restraints outlined are considered an undue hardship on the franchisee?

According to the 2025 Healthsource Chiropractic FDD, franchisees acknowledge and agree that the restraints outlined in Section 9.3 of the agreement are considered fair and reasonable. They are deemed necessary to protect Healthsource Chiropractic's legitimate business interests and do not impose undue hardship on the franchisee.

Section 9.3 likely contains restrictive covenants such as non-disparagement and non-solicitation clauses. These clauses are common in franchise agreements to protect the brand's reputation and customer base. The non-disparagement clause prevents franchisees from making negative statements about Healthsource Chiropractic, its franchisees, or their business practices. The non-solicitation clause restricts franchisees from soliciting patients or interfering with Healthsource Chiropractic's relationships with franchisees, vendors, or referral sources.

By agreeing to these terms, prospective Healthsource Chiropractic franchisees should understand that they are accepting certain limitations on their ability to operate independently, especially after the franchise agreement ends. However, Healthsource Chiropractic asserts that these limitations are reasonable and necessary for the protection of the franchise system. Franchisees should carefully consider the implications of these restraints and seek legal advice if they have concerns about their potential impact.