Is a HealthSource Chiropractic franchisee relieved of their insurance obligations if HealthSource Chiropractic maintains its own insurance?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. The insurance HealthSource Chiropractic requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by HealthSource Chiropractic. Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Agreement, a franchisee's insurance obligations are not reduced or eliminated even if HealthSource Chiropractic maintains its own insurance coverage. The insurance that HealthSource Chiropractic secures is solely for its own protection.
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. You are obligated to defend, indemnify, and hold HealthSource Chiropractic harmless from any such claims, losses, or damages, and this obligation survives the termination or non-renewal of the franchise agreement.
Furthermore, franchisees must maintain insurance coverage in the amounts and under the terms and conditions required in connection with the lease or purchase of their premises. HealthSource Chiropractic emphasizes that franchisees should consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection they need or desire, in addition to the minimum requirements specified by HealthSource Chiropractic. This ensures that franchisees have adequate coverage for their specific circumstances, regardless of any insurance maintained by the franchisor.