factual

Does a Healthsource Chiropractic franchisee irrevocably submit to the jurisdiction of state or federal court of general jurisdiction in Lorain County, Ohio?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree that the venue for any action arising out of or relating to this Agreement (which is not required to be arbitrated hereunder or as to which arbitration is waived) shall be in any state or federal court of general jurisdiction in Lorain County, Ohio, unless otherwise mutually agreed by the parties in writing, and you irrevocably submit to the jurisdiction of such courts and waive any objection you may have to either the jurisdiction or venue of such court.

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a franchisee agrees that the venue for any action arising out of or relating to the Franchise Agreement (which is not required to be arbitrated or as to which arbitration is waived) will be in any state or federal court of general jurisdiction in Lorain County, Ohio, unless otherwise mutually agreed by the parties in writing. The franchisee irrevocably submits to the jurisdiction of those courts and waives any objection to the jurisdiction or venue of such court.

This means that if a Healthsource Chiropractic franchisee has a legal dispute with the franchisor that is not subject to arbitration, the lawsuit must be filed in Lorain County, Ohio. This applies regardless of where the franchisee's business is located. The franchisee consents to the jurisdiction of the courts in Lorain County and waives the right to object to that location.

This clause is fairly common in franchise agreements, as it allows the franchisor to manage legal disputes in a location convenient for them, typically their home state. However, it could create additional expenses and logistical challenges for a Healthsource Chiropractic franchisee who lives and operates their business far from Ohio, as they would need to travel to Ohio for court proceedings and potentially hire local counsel.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.