How much time does a Healthsource Chiropractic franchisee have to cure a default related to development obligations?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 6.1 | The term begins on the effective date and ends on the earlier of the date you open the last Clinic you are required to open under your Development Schedule or the expiration of your Development Schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
| c. | Requirements for franchisee to renew or extend | Not Applicable | Not Applicable |
| d. | Termination by franchisee | Not Applicable | Franchisees may terminate the agreements under any grounds permitted by state law. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with cause | Section 6.2 | We may terminate your Development Agreement with cause as described in (g)-(h) of this Item 17 Chart. |
| g. | "Cause" defined – curable defaults | Section 6.2 | We may terminate the Development Agreement if you fail to meet your development obligations under the Development Agreement du |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee has 30 days to cure a default related to their development obligations. Specifically, if a franchisee fails to meet their development obligations during the Development Period, including any monetary default, Healthsource Chiropractic may terminate the Development Agreement. However, this termination can only occur if the franchisee fails to correct the default within 30 days of receiving notice of the default.
This 30-day cure period is a standard practice in franchising, providing franchisees an opportunity to rectify any shortcomings in their performance before the franchisor takes drastic action. It applies to failures in meeting development obligations, which could include not opening clinics according to the agreed-upon schedule or failing to meet financial commitments related to development.
It is important for prospective Healthsource Chiropractic franchisees to understand the specific development obligations outlined in their Development Agreement and to maintain open communication with the franchisor. This will ensure that any potential issues are addressed promptly and within the 30-day cure period, avoiding potential termination of the agreement.