Is a Healthsource Chiropractic franchisee allowed to recruit or hire employees from other HealthSource Chiropractic locations?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. You agree not to recruit or hire, either directly or indirectly, any employee (or a former employee, for six (6) months after his or her employment has ended) of any HealthSource Chiropractic Clinic or Regional Developer franchise operated by us, our affiliates, or another HealthSource Chiropractic franchise owner without first obtaining the written consent of us, our affiliate, or the franchise owner that currently employs (or previously employed) such employee. (If you violate this provision, in addition to any other right or remedy we may have, you agree to pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. This amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach).
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, a franchisee is restricted from recruiting or hiring employees from other Healthsource Chiropractic locations without prior written consent. Specifically, a franchisee cannot directly or indirectly recruit or hire any employee (or former employee within six months of their employment ending) of any Healthsource Chiropractic Clinic or Regional Developer franchise operated by Healthsource Chiropractic, its affiliates, or another Healthsource Chiropractic franchise owner without obtaining written consent.
If a Healthsource Chiropractic franchisee violates this provision, they must pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. The FDD states that this amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach.
Prospective franchisees should be aware of this restriction as it could significantly impact their ability to staff their clinic. Obtaining written consent may not always be guaranteed, and the financial penalties for violating this clause are substantial. This type of clause is not uncommon in franchising to protect franchisees who have invested in training their employees.