Must all insurance policies required by Paragraph 10.8 be furnished to Healthsource Chiropractic before opening the franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (12) acquire all required insurance policies as required under Section 10.8 below;
- (13) do any other acts necessary to open and operate the Franchise in accordance with this Agreement (including, without limitation, becoming fully active on our designated billing system as required under Section 3.4 below);
- (14) obtain our approval to open the Franchise for business; and
- (15) open the Franchise for business.
For purposes of the following paragraph, you must achieve each of the foregoing requirements in this paragraph before your Clinic is deemed to be "open."
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee must acquire all required insurance policies as mandated under Section 10.8 before commencing operations. Furthermore, the franchisee must provide proof of this insurance to Healthsource Chiropractic in a form that is satisfactory to them before opening the franchise.
This requirement ensures that the franchisee has adequate insurance coverage to protect both their business and Healthsource Chiropractic from potential liabilities. It is a standard practice in franchising to ensure that franchisees meet certain minimum insurance requirements to safeguard the brand and the network as a whole.
Prospective Healthsource Chiropractic franchisees should carefully review Section 10.8 of the franchise agreement to understand the specific types and amounts of insurance coverage required. They should also consult with their insurance agent to obtain the necessary policies and ensure that they can provide proof of coverage to Healthsource Chiropractic before opening their franchise.