What was the maximum amount Healthsource Chiropractic offered to refund to the purchaser in the Virginia case?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ation involves us:
Public Agency Orders
Commonwealth of Virginia v HealthSource Chiropractic, Inc. and Bernard Brozek; Case No. SEC-2019-00058. On January 29, 2020, we entered into and delivered a Settlement Order with the Virginia State Corporation Commission's Division of Securities and Retail Franchising (the "Division"). The Division alleged that our 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy one of our officers, Bernard Brozek, and therefore, violated the Virginia Retail Franchising Act. We do not admit or deny the Division's allegation. In order to resolve this matter without the further cost and expense of formal proceedings, we agreed to make an offer to refund the initial franchise fees paid by the one purchaser during the subject time frame (up to a maximum of $80,000) and to pay the Division the sum of $9,000 in costs and civil penalties. We have completed making the refund to the designated purchaser and paying the required costs, Mr. Brozek reimbursed us for those payments,
Source: Item 3 — Litigation (FDD pages 14–15)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a settlement order was reached with the Virginia State Corporation Commission's Division of Securities and Retail Franchising on January 29, 2020. The allegation was that the 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy of one of its officers, Bernard Brozek, which was a violation of the Virginia Retail Franchising Act. Healthsource Chiropractic did not admit or deny the allegation.
To resolve the matter without incurring further costs, Healthsource Chiropractic agreed to offer a refund of the initial franchise fees paid by the purchaser during the specified time frame. The maximum refund amount offered was $80,000. Healthsource Chiropractic also agreed to pay the Division $9,000 to cover costs and civil penalties.
The FDD states that Healthsource Chiropractic completed the refund to the purchaser and paid the required costs. Bernard Brozek reimbursed Healthsource Chiropractic for these payments and is no longer employed by the company. This resolution allowed Healthsource Chiropractic to avoid further formal proceedings and associated expenses.