What is the initial term length of the Healthsource Chiropractic agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a HealthSource Chiropractic Clinic, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a Franchise to operate a Clinic offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for HealthSource Chiropractic Clinics. You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years. The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement. To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below). All
references to the "Term of this Agreement" refer to the period from the Agreement Date to the date on which this Agreement actually terminates or expires.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the initial term for a Healthsource Chiropractic franchise is 10 years. The agreement begins on the agreement date. However, if the franchise is being assumed through a transfer, the length of the initial term will be determined by the transfer agreement. The expiration date of the initial term is listed on Exhibit 1 of the Franchise Agreement.
Healthsource Chiropractic requires franchisees to operate the franchise and fulfill all obligations outlined in the agreement for the entire initial term, as well as any subsequent renewals or extensions. Franchisees must exert their best efforts to promote and enhance the business of the franchise throughout the term of the agreement.
Upon termination or expiration of the agreement, the franchisee's rights to operate the franchise, use the Healthsource Chiropractic marks, and utilize any confidential information associated with the franchise will also terminate. This underscores the importance of understanding the terms and conditions of the agreement and the implications of its expiration or termination.
Time is of the essence in the Healthsource Chiropractic agreement, meaning that failure to meet deadlines or fulfill obligations within the specified time frame constitutes a material breach of the agreement. This emphasizes the need for franchisees to adhere strictly to the timelines and requirements outlined in the agreement to avoid potential penalties or termination.