Does the Healthsource Chiropractic franchise agreement specify that the franchisee must cover actual and consequential damages when indemnifying Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the existence of such insurance, you are and will be responsible for all loss or damage and contractual liability to third persons originating from or in connection with the operation of the Franchise, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom; and you agree to defend, indemnify and hold us harmless of, from, and with respect to any such claims, loss or damage, which indemnity shall survive the termination or expiration and non-renewal of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the franchisee is responsible for losses or damages connected to the operation of the franchise. The franchisee must defend, indemnify, and hold Healthsource Chiropractic harmless from any claims, losses, or damages. This obligation survives the termination, expiration, or non-renewal of the franchise agreement.
This means that as a Healthsource Chiropractic franchisee, you are responsible for any losses, damages, or contractual liabilities to third parties that arise from the operation of your franchise. This includes claims for property damage, personal injury, illness, or death. The obligation to indemnify Healthsource Chiropractic means you must protect them from any legal claims or financial losses resulting from your franchise's operations.
Franchisees should consult with legal and insurance professionals to fully understand the scope of their indemnification obligations and to ensure they have adequate insurance coverage to protect themselves against potential claims. This is a standard clause in most franchise agreements, but the specific terms and potential liabilities can vary significantly.