Where can I find more details about the termination with cause provisions in the Healthsource Chiropractic Development Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 6.1 | The term begins on the effective date and ends on the earlier of the date you open the last Clinic you are required to open under your Development Schedule or the expiration of your Development Schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
| c. | Requirements for franchisee to renew or extend | Not Applicable | Not Applicable |
| d. | Termination by franchisee | Not Applicable | Franchisees may terminate the agreements under any grounds permitted by state law. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with cause | Section 6.2 | We may terminate your Development Agreement with cause as described in (g)-(h) of this Item 17 Chart. |
| g. | "Cause" defined – curable defaults | Section 6.2 | We may terminate the Development Agreement if you fail to meet your development obligations under the Development Agreement during the Development Period (including any monetary default) and you fail to cure such default within 30 days of receiving notice. |
| h. | "Cause" defined – non-curable defaults | Section 6.2 | We may terminate the Development Agreement if you cease to actively engage in development activities in the Site Selection Area or otherwise abandon your development business for three consecutive months, or any shorter period that indicates an intent |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, details regarding the franchisor's right to terminate the Development Agreement with cause can be found in Section 6.2 of the Development Agreement. The FDD outlines two categories of "cause" for termination: curable defaults and non-curable defaults.
Curable defaults, as defined in Section 6.2, involve the franchisee's failure to meet development obligations, including monetary defaults, during the Development Period. In such cases, Healthsource Chiropractic will provide a 30-day notice to cure the default. Failure to remedy the default within this period may result in termination of the Development Agreement.
Non-curable defaults, also detailed in Section 6.2, include scenarios where the franchisee ceases active engagement in development activities within the Site Selection Area for three consecutive months (or a shorter period indicating an intent to discontinue development), becomes insolvent or bankrupt, makes an assignment for the benefit of creditors, or if any related Franchise Agreement is terminated or subject to termination by Healthsource Chiropractic. These situations allow Healthsource Chiropractic to terminate the Development Agreement.