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

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 form is included as an exhibit to the Healthsource Chiropractic Franchise Agreement. This requirement ensures that the franchisor has recourse to the personal assets of the principal owners should the franchise entity default on its obligations.

The inclusion of a personal guaranty is a common practice in franchising, especially when the franchisee is a business entity. It mitigates the franchisor's risk by holding individuals accountable for the performance of the franchise. Principal owners should carefully review the terms of the guaranty to understand the extent of their personal liability.

Prospective Healthsource Chiropractic franchisees should be aware that signing a personal guaranty means they are personally responsible for the financial and contractual obligations of the franchise. This could include debts, leases, and other liabilities. Franchisees should seek legal counsel to fully understand the implications of the personal guaranty before signing the Franchise Agreement.