Does the Healthsource Chiropractic Franchise Agreement include an amendment regarding the choice of law language?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Legal Requirements. In addition, if, in the opinion of our legal counsel, any provision of this Agreement is contrary to law, then this Agreement shall remain in full force and effect and you and we agree to negotiate in good faith an amendment that would make this Agreement conform to the applicable legal requirements. If you and we are unable to reach such an agreement within 30 days after notice of the issue is given to the other party, or if fundamental changes to this Agreement are required to make it conform to the legal requirements, then we reserve the right to terminate this Agreement upon notice to you, in which case neither party shall have any liability to the other but all of your post-termination obligations set forth in Section 16 shall apply.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Franchise Agreement addresses the possibility of amendments if any provision is found to be contrary to law. Specifically, if Healthsource Chiropractic's legal counsel believes a provision is unlawful, the agreement remains in effect, and both parties are expected to negotiate an amendment in good faith to align with legal requirements.
However, if an agreement on an amendment cannot be reached within 30 days of notification, or if fundamental changes are needed to comply with legal requirements, Healthsource Chiropractic reserves the right to terminate the agreement. In such a termination, neither party is liable to the other, but the franchisee's post-termination obligations, as detailed in Section 16 of the agreement, still apply.
This clause ensures that the Healthsource Chiropractic Franchise Agreement can adapt to changing legal landscapes, although it also introduces the risk of termination if amendments cannot be agreed upon, potentially impacting the franchisee's investment and business operations.