When can either party terminate the Healthsource Chiropractic agreement immediately upon termination of the Franchise Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that Customer ceases to be a franchisee in good standing with HealthSource Chiropractic, this Agreement is subject to suspension and/or termination upon notice to Customer, if HealthSource Chiropractic notifies HealthCore that Customer is not in good standing under their franchise agreement.
- 15.2 Legal Requirements. In addition, if, in the opinion of our legal counsel, any provision of this Agreement is contrary to law, then this Agreement shall remain in full force and effect and you and we agree to negotiate in good faith an amendment that would make this Agreement conform to the applicable legal requirements. If you and we are unable to reach such an agreement within 30 days after notice of the issue is given to the other party, or if fundamental changes to this Agreement are required to make it conform to the legal requirements, then we reserve the right to terminate this Agreement upon notice to you, in which case neither party shall have any liability to the other but all of your post-termination obligations set forth in Section 16 shall apply.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, HealthCore (likely a service provider) can suspend or terminate its agreement with a customer (the franchisee) if the franchisee ceases to be in good standing with Healthsource Chiropractic. This action can be taken upon notice to the customer if Healthsource Chiropractic informs HealthCore that the customer is not in good standing under their franchise agreement. This means that if a Healthsource Chiropractic franchisee's agreement is terminated due to a breach or other cause, HealthCore can also terminate its services to the franchisee.
Additionally, Healthsource Chiropractic has the right to terminate the Franchise Agreement immediately if any provision is deemed contrary to law by their legal counsel. In this case, both parties are expected to negotiate an amendment to conform to legal requirements. However, if an agreement cannot be reached within 30 days of notifying the other party, or if fundamental changes are needed, Healthsource Chiropractic reserves the right to terminate the agreement with notice. In this scenario, neither party will have liability to the other, but the franchisee's post-termination obligations, as outlined in Section 16 of the agreement, will still apply.
These termination clauses highlight the importance of maintaining a good standing with Healthsource Chiropractic and adhering to all legal requirements. A franchisee's failure to do so could lead to the immediate termination of the agreement and associated services, as well as the enforcement of post-termination obligations, which may include financial penalties and restrictions on operating a competing business.