What law governs the Healthsource Chiropractic Disclosure Document and Franchise Agreement?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, both federal and state laws govern the franchise agreement. Specifically, the document states that if Healthsource Chiropractic does not deliver the disclosure document on time, or if it contains false or misleading statements, or a material omission, a violation of federal and state law may have occurred.

Prospective franchisees should be aware that the Federal Trade Commission (FTC) and appropriate state agencies, listed in Exhibit A of the FDD, are the bodies to which violations should be reported. This indicates that Healthsource Chiropractic franchisees have legal recourse at both the federal and state levels if they believe they have been provided with inaccurate or incomplete information during the franchise sales process.

Additionally, the California Addendum within the FDD mentions the California Franchise Investment Law, which requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document. It also states that Section 31125 of the California Franchise Investment Law requires Healthsource Chiropractic to provide a disclosure document approved by the Commissioner of Financial Protection and Innovation before asking a franchisee to consider a material modification of their Franchise Agreement. This highlights the importance of franchisees understanding their rights and protections under both federal and state laws when entering into a franchise agreement with Healthsource Chiropractic.