Does the Healthsource Chiropractic General Release Agreement require the release to be executed to preserve the Franchisee's eligibility to renew the agreement?
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, franchisees and their Principal Owners must execute a general release to renew their franchise agreement. This release must be in a form satisfactory to Healthsource Chiropractic, covering any and all claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents.
In practical terms, this means that as a condition of renewing their franchise, franchisees must waive their rights to sue Healthsource Chiropractic for any past issues or grievances. This is a standard practice in franchising, intended to provide the franchisor with legal protection and a clean slate moving forward.
However, this requirement carries significant implications for prospective franchisees. Before signing the release, franchisees should carefully consider whether they have any existing or potential claims against Healthsource Chiropractic. They may want to consult with an attorney to fully understand the scope and impact of the release. Failure to execute the release means the franchisee will not be able to renew their franchise agreement.
In addition to the general release, franchisees must also execute the form of Franchise Agreement and any ancillary agreements that Healthsource Chiropractic is then customarily using in the grant or renewal of franchises. The terms of the Franchise Agreement that franchisees must execute upon renewal, and any other agreements Healthsource Chiropractic may require, may differ materially from those contained in the original agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Franchisee's right to renew will be contingent upon their acceptance of the new terms. Franchisees must also pay Healthsource Chiropractic a renewal fee equal to $10,000.00 concurrently with signing the renewal Franchise Agreement.