In the Healthsource Chiropractic General Release Agreement, what are Franchisee and each Owner referred to as?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE AGREEMENT ("Release") is made and entered into this day of, 20, by and between HealthSource Chiropractic, LLC, an Ohio limited liability company ("Franchisor"), and |
|---|
| , |
| a |
| corporation/limited |
| liability |
| company/partnership |
| (circle |
| one) |
| ("Franchisee"), |
| and |
| each |
| shareholder/member/partner of Franchisee (individually, an "Owner," |
| and collectively, |
| the "Owners") (collectively, Franchisor, Franchisee, and the Owners are referred to |
| hereinafter as the "Parties"). |
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the General Release Agreement specifies how the Franchisee and each Owner are referred to. The Franchisee is referred to as "Franchisee" and each shareholder, member, or partner of the Franchisee is individually referred to as an "Owner" and collectively as the "Owners".
This distinction is important because the General Release Agreement involves multiple parties, each with their own roles and responsibilities. The agreement is made between HealthSource Chiropractic, the Franchisee (which is the business entity), and the Owners (the individuals who have a stake in the Franchisee entity). This ensures that all parties involved are clearly identified within the legal document.
For a prospective Healthsource Chiropractic franchisee, understanding these definitions is crucial. It clarifies who is bound by the terms of the agreement. If the franchisee is a corporation or LLC, the individual owners or members are also bound by the agreement as "Owners," meaning they have individual obligations and liabilities in addition to those of the business entity.