Can Healthsource Chiropractic freely transfer the franchise agreement to another party?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Transfer by HealthSource Chiropractic. You represent that you have not signed this Agreement in reliance on any owner, officer, or employee remaining with us in that capacity. We may change our ownership or form at any time in our sole discretion. This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic has the right to transfer the franchise agreement without any restrictions. This means Healthsource Chiropractic can freely assign the agreement to another person or entity.
This transfer will benefit any person or entity to whom it is transferred, or any other legal successor to Healthsource Chiropractic's interests in the agreement. After Healthsource Chiropractic assigns the agreement to a third party who expressly assumes their obligations, Healthsource Chiropractic will no longer have any performance or other obligations or liabilities under the agreement.
This clause is typical in franchise agreements, allowing the franchisor flexibility in its business operations. However, it is important for franchisees to understand that the entity they initially contracted with may change, and their agreement will then be with a new party. While the terms of the agreement should remain the same, the new entity's management style and resources could differ.