For a Healthsource Chiropractic franchise in Washington, what is the franchisee's recourse if litigation is not precluded by the franchise agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
gton requires that the following risks be highlighted concerning this Franchise:*
- During the last 3 years, a large number of franchised outlets (138) were terminated, not renewed, re-acquired, or ceased operations for other reasons. This franchise could be a higher risk investment than a franchise in a system with a lower turnover rate.
Additional Disclosures Required in Washington
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also
be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, if litigation is not precluded by the franchise agreement for a franchise purchased in Washington, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. This means that Healthsource Chiropractic franchisees in Washington State retain the right to sue Healthsource Chiropractic in Washington courts under certain conditions.
Additionally, the FDD states that the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws. RCW 19.100.180 may supersede the franchise agreement in the franchisee's relationship with Healthsource Chiropractic, including areas of termination and renewal. Court decisions may also supersede the franchise agreement in these areas. This protects the franchisee by ensuring that Washington state law takes precedence over conflicting terms in the franchise agreement.
Furthermore, any release or waiver of rights executed by a Healthsource Chiropractic franchisee cannot include rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel. Provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or rights or remedies such as the right to a jury trial, may not be enforceable. This safeguards the franchisee's legal rights and ensures they cannot be unknowingly waived without proper legal representation and due process.