What is the purpose of the Healthsource Chiropractic General Release Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
with all the terms and conditions of this Agreement up to the date of expiration, and not just on those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, HealthSource Chiropractic, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Clinic Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Ad Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the General Release Agreement is required for franchisees and their principal owners when renewing their franchise agreement. This agreement involves the franchisee and their principal owners releasing Healthsource Chiropractic and its affiliates from any claims against them.
Specifically, to renew a Healthsource Chiropractic franchise, the franchisee, along with their principal owners, must execute the then-current form of the Franchise Agreement and any related ancillary agreements. These agreements may have terms that differ significantly from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The renewal is contingent upon the franchisee's acceptance of these new terms.
In addition to signing the renewal Franchise Agreement and paying a $10,000 renewal fee, franchisees and their Principal Owners must also execute general releases. These releases, in a form satisfactory to Healthsource Chiropractic, waive any and all claims against Healthsource Chiropractic, its affiliates, and their respective owners, officers, directors, employees, and agents. This ensures that upon renewal, Healthsource Chiropractic is protected from any past or present legal issues that the franchisee may have against them.