How much did Healthsource Chiropractic pay to the Virginia Division in costs and civil penalties?
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 the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic entered into a settlement order with the Virginia State Corporation Commission's Division of Securities and Retail Franchising on January 29, 2020. The settlement resolved allegations that Healthsource Chiropractic's 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy of one of its officers. While Healthsource Chiropractic did not admit or deny the allegations, they agreed to resolve the matter to avoid further costs and expenses.
As part of the settlement, Healthsource Chiropractic agreed to offer a refund of initial franchise fees to the one purchaser during the period in question, up to a maximum of $80,000. Additionally, Healthsource Chiropractic was required to pay the Virginia Division $9,000 to cover costs and civil penalties. The FDD states that Healthsource Chiropractic has completed making the refund to the purchaser and has paid the required costs.
It's important to note that Mr. Brozek, the officer whose bankruptcy was at issue, reimbursed Healthsource Chiropractic for these payments and is no longer employed by the company. This resolution suggests that Healthsource Chiropractic took steps to rectify the situation and ensure compliance with franchising regulations.