Does the indemnification obligation to HealthSource Chiropractic continue after the termination of the agreement?

According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations continue after the expiration, renewal, or termination of the Franchise Agreement. Specifically, the allocation of responsibility and the franchisee's duty to indemnify HealthSource Chiropractic remain in full effect even after the agreement ends. This means that even after the franchise agreement is no longer active, the franchisee may still be responsible for covering HealthSource Chiropractic's losses or damages if certain conditions are met, as outlined in the original agreement.

This continuing obligation is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's actions during the term of the agreement. It is important for prospective franchisees to carefully review the specific indemnification clauses within the Franchise Agreement to understand the scope of their potential liabilities, even after the franchise relationship concludes.

For a prospective HealthSource Chiropractic franchisee, this means understanding the types of claims or liabilities they could be responsible for covering, even after they are no longer operating the franchise. This could include legal fees, settlements, or judgments resulting from lawsuits or other claims related to the operation of the franchise during its active period. It is advisable to seek legal counsel to fully understand the implications of these clauses and to assess the potential risks involved.