Is internal mediation required before seeking injunctive relief related to a Healthsource Chiropractic franchise agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
17.8 Specific Performance; Injunctive Relief; Liquidated Damages.
a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or HealthSource Chiropractic franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any
claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
The 2025 Healthsource Chiropractic Franchise Disclosure Document does not specify that internal mediation is required before Healthsource Chiropractic seeks injunctive relief related to the franchise agreement. However, Healthsource Chiropractic is entitled to seek temporary and permanent injunctions and orders of specific performance under certain conditions.
Healthsource Chiropractic is entitled to seek injunctive relief if they provide appropriate notice to the franchisee. They are not required to post a bond. This relief can be pursued to enforce provisions related to the use of trademarks, non-disclosure, non-solicitation, non-disparagement, and non-competition obligations, as well as any Restrictive Covenants Agreement signed by a General Manager. Injunctive relief can also be used to prohibit actions that violate laws, ordinances, or regulations, pose a danger to the public, or harm the goodwill associated with the Healthsource Chiropractic brand.
If Healthsource Chiropractic obtains an injunction or order of specific performance, the franchisee is responsible for covering all associated costs. These costs include reasonable attorneys' and expert witness fees, investigation and proof of facts, court costs, other litigation expenses, travel and living expenses, and any damages incurred as a result of the breach. The franchisee also agrees to waive any claims for damages if the injunction or specific performance order is later determined to have been issued improperly.