What happens if the Franchisee and Owners do not enter into the Healthsource Chiropractic General Release 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, executing a general release is required for franchise renewal. To renew the Healthsource Chiropractic franchise, the franchisee and their principal owners must execute the form of Franchise Agreement and any ancillary agreements that Healthsource Chiropractic is then customarily using.
In addition to the standard agreements, the franchisee and owners must also sign general releases, in a form satisfactory to Healthsource Chiropractic, that release any and all claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents.
Furthermore, the renewal of the franchise is contingent upon the franchisee's acceptance of the new terms and conditions outlined in the renewal agreement. The franchisee must also pay a renewal fee of $10,000 concurrently with signing the renewal Franchise Agreement. Therefore, if the franchisee and owners do not enter into the Healthsource Chiropractic General Release Agreement, the franchise will not be renewed.