What is the purpose of the Washington Amendment to the Development Agreement for Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Washington Amendment to the Development Agreement addresses concerns raised by the Attorney General of the State of Washington regarding "no-poach" provisions in Healthsource Chiropractic's prior franchise agreements. These provisions were alleged to potentially violate the State of Washington's Consumer Protection Act, specifically RCW 19.86.030. The "no-poach" clauses previously restricted franchisees from soliciting or hiring employees who worked for Healthsource Chiropractic or its franchisees.
To resolve these concerns, Healthsource Chiropractic entered into an Assurance of Discontinuance with the State of Washington. As part of this agreement, Healthsource Chiropractic committed to not enforcing any existing "no-poach" provisions, to amend franchise agreements within Washington to remove such provisions, and to refrain from including them in future agreements. The Assurance of Discontinuance effectively settled all issues raised by the State of Washington against Healthsource Chiropractic, and the company has reportedly fulfilled all its obligations under the agreement.
Furthermore, the Washington Amendment ensures compliance with RCW 49.62.060, which prohibits franchisors from restricting franchisees from soliciting or hiring employees of either the franchisor or other franchisees within the system. The amendment explicitly states that any conflicting provisions in the franchise agreement or elsewhere are void and unenforceable in Washington. Additionally, it prevents franchisees from waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor, franchise seller, or their representatives through any signed documents or acknowledgments related to the franchise relationship. This provision takes precedence over any other conflicting terms in any document associated with the franchise.