What happens to the obligations outlined in the HealthSource Chiropractic agreement that are designed to survive termination or expiration?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
16.6 Continuing Obligations. All obligations of this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full or by their nature expire. Without limiting the foregoing, you acknowledge and agree that your covenants in Article 9 above survive the termination or expiration of this Agreement to the extent set forth in such Article 9.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, all obligations within the agreement, whether belonging to the franchisee or franchisor, that are explicitly stated to survive or naturally survive the expiration or termination of the agreement will remain in full effect. This continuation persists regardless of the termination or expiration until these obligations are completely fulfilled or naturally expire.
Specifically, the non-compete and confidentiality covenants outlined in Article 9 of the HealthSource Chiropractic franchise agreement are designed to survive termination or expiration. This means that even after the franchise agreement ends, the franchisee must continue to uphold these promises, such as protecting confidential information and refraining from engaging in competitive activities as defined in Article 9.
Additionally, the franchisee's duty to indemnify HealthSource Chiropractic against losses or damages connected to the franchise's operation extends beyond the agreement's termination or expiration. This means that even after the franchise ceases to operate, the franchisee remains responsible for any claims, losses, or damages stemming from the franchise's past operations. Franchisees should carefully review Article 9 and Section 10.8 in the HealthSource Chiropractic franchise agreement to fully understand the scope and duration of these continuing obligations.