If a Healthsource Chiropractic franchisee violates the restrictions on what they can sell, what are the potential consequences?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must offer and sell only those services and products we have approved for your type of franchise. You must also offer all goods and services that we designate for your type of franchise. You may not offer or sell any goods, services, equipment, or products that we prohibit without our written consent. We may add new or additional products and services that you must offer at your franchise. There are no restrictions in the Franchise Agreement on our right to do this. All advertising, signs, promotional materials, decorations and other related items we designate must have the Marks in the form we specify. The products and services approved or required by us shall not be deemed to affect or otherwise influence your clinical judgment as to particular services and products that will be offered to individual patients. All medical and chiropractic related decisions, acts or omissions made by, or in connection with any person in any way associated with you or your franchise will be the decisions of the individual professionals involved and will not be affected by or attributed to us.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 52)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees must only offer and sell approved services and products and must offer all goods and services designated for their franchise type. They cannot offer or sell prohibited items without written consent. Healthsource Chiropractic can add new products and services that franchisees must offer, and this right is not restricted in the Franchise Agreement. All advertising, signs, promotional materials, decorations, and related items must display the Marks in the specified form.
This means a Healthsource Chiropractic franchisee's business is limited to the products and services approved by the franchisor. The franchisor retains the right to modify the offerings, which could impact a franchisee's business plan and revenue streams. Franchisees need to stay updated on approved products and services to avoid violating the agreement. The franchisee maintains clinical judgment regarding patient care, and Healthsource Chiropractic is not liable for the franchisee's or their staff's medical decisions.
While the FDD excerpt specifies what a franchisee can and cannot sell, it does not explicitly state the consequences of violating these restrictions. A prospective franchisee should seek clarification from Healthsource Chiropractic regarding the specific penalties or actions that could result from non-compliance, such as warnings, fines, or termination of the franchise agreement.