For Healthsource Chiropractic, how are modifications or amendments to the release required to be made?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- c.
If a state regulator requires an amendment to this Agreement, the amendment is attached to this Agreement.
We will not, however, be precluded from contesting the validity, enforceability, or applicability of such regulator's required amendment in any action relating to this Agreement or to its rescission or termination.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a state regulator requires an amendment to the franchise agreement, that amendment is attached to the agreement. However, Healthsource Chiropractic retains the right to contest the validity, enforceability, or applicability of the regulator's required amendment in any legal action related to the agreement, its rescission, or termination.
This means that while Healthsource Chiropractic will include required state amendments, they do not automatically concede to the amendment's validity and can challenge it later. This is a somewhat unusual clause, as many franchisors simply incorporate required amendments without reserving the right to contest them.
For a prospective franchisee, this clause highlights the importance of understanding the specific regulations in their state and how they might affect the franchise agreement. It also suggests that franchisees should be prepared for the possibility of legal challenges from Healthsource Chiropractic regarding state-mandated amendments. Franchisees should seek legal counsel to fully understand their rights and obligations in such situations.