If the Healthsource Chiropractic Licensed Provider is an entity, what must be true regarding the validity of the agreement?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if the Licensed Provider is an entity, the agreement must be authorized by all necessary corporate action of the Licensed Provider. Additionally, the agreement must be a valid and binding agreement of the Licensed Provider, enforceable in accordance with its terms. Finally, the individual signing the agreement on behalf of the Licensed Provider must be duly authorized to enter into and execute the agreement.

This means that if a corporation, LLC, or other legal entity is the Healthsource Chiropractic Licensed Provider, the entity's governing body (e.g., board of directors or members) must formally approve the agreement. This ensures that the entity is legally bound by the agreement's terms. The person signing the agreement must have the authority to do so, preventing later disputes about the agreement's validity.

This requirement is a standard practice in franchising to ensure that all parties entering into an agreement have the legal capacity and authority to do so. A prospective Healthsource Chiropractic franchisee should ensure that all internal corporate procedures are followed when authorizing and executing the agreement to avoid potential legal challenges in the future.