Does the Healthsource Chiropractic General Release Agreement require mutual agreements as consideration?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
with all the terms and conditions of this Agreement up to the date of expiration, and not just on those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, HealthSource Chiropractic, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, to renew a franchise, the franchisee, Healthsource Chiropractic, and the franchisee's Principal Owners must execute the current form of the Franchise Agreement along with any additional agreements that Healthsource Chiropractic uses for granting or renewing franchises, with necessary modifications to reflect that it is a renewal. No initial franchise fee is required for renewal. The terms of the renewal Franchise Agreement and any other required agreements may differ significantly from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms and paying a renewal fee of $10,000.00 when signing the renewal Franchise Agreement.
In addition to the above, the franchisee and their Principal Owners must also sign general releases, in a form satisfactory to Healthsource Chiropractic, which waive any and all claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents. The FDD does not explicitly state that Healthsource Chiropractic provides a release of claims against the franchisee in return.
Therefore, while the franchisee is required to release all claims against Healthsource Chiropractic, the document does not specify that Healthsource Chiropractic provides a reciprocal release of claims against the franchisee as part of the General Release Agreement. A prospective franchisee should clarify with Healthsource Chiropractic whether the General Release Agreement includes mutual releases or only releases the franchisee's claims against the franchisor.