Who reimbursed Healthsource Chiropractic for the payments made in the Virginia case?
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 Healthsource Chiropractic's 2025 Franchise Disclosure Document, Bernard Brozek reimbursed Healthsource Chiropractic for the payments made in the Virginia case. The case, Commonwealth of Virginia v HealthSource Chiropractic, Inc. and Bernard Brozek; Case No. SEC-2019-00058, was settled on January 29, 2020, with the Virginia State Corporation Commission's Division of Securities and Retail Franchising. The settlement involved Healthsource Chiropractic offering to refund initial franchise fees (up to $80,000) to a purchaser and paying $9,000 in costs and civil penalties to the Division.
Healthsource Chiropractic agreed to the settlement to avoid further costs and formal proceedings, without admitting or denying the Division's allegations that their 2017 and 2018 disclosure documents failed to disclose a prior personal bankruptcy of Bernard Brozek, one of their officers, violating the Virginia Retail Franchising Act.
This resolution highlights the importance of accurate and complete disclosure in franchise documents. The fact that Mr. Brozek reimbursed Healthsource Chiropractic for the settlement costs suggests that the company sought to mitigate the financial impact of the settlement. Mr. Brozek is no longer employed by Healthsource Chiropractic.