Does the Healthsource Chiropractic Franchise Agreement include an Owner's Guaranty?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if the franchise owner is a corporation, partnership, LLC, or other entity, each Principal Owner must sign a Personal Guaranty form. This requirement ensures that Healthsource Chiropractic has recourse to the personal assets of the individuals who control the franchise entity, providing an additional layer of security for the franchisor.

In practical terms, this means that if a franchisee operates their Healthsource Chiropractic franchise through a business entity, the franchisor will likely require the principal owners to personally guarantee the obligations of the franchise agreement. This is a common practice in franchising, as it holds individuals accountable for the performance of the franchise, even if the business entity incurs debt or fails to meet its contractual obligations.

Prospective Healthsource Chiropractic franchisees should carefully consider the implications of signing a personal guarantee. It exposes their personal assets to potential claims by the franchisor if the franchise business fails. Franchisees should seek legal and financial advice to fully understand the risks and obligations associated with a personal guarantee before signing the franchise agreement.