factual

Can Healthsource Chiropractic require a franchisee to establish their website as part of the franchisor's website?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

ithout limitation, the loss of future revenues (which we both agree include the expected amount of Continuing Franchise Fees, Ad Fund contributions, and Technology Fees payable by you for the remainder of the Term of this Agreement); and

  • c. all costs and expenses, including attorneys' fees, incurred in connection with the termination, collection of the termination fee and/or damages, and audit fees and expenses.

  • 15.4 Withholding of Performance. HealthSource Chiropractic will perform its obligations under this Agreement if you are in full compliance with all or your duties and obligations to HealthSource Chiropractic under this Agreement and the Operations Manual (including any documents incorporated therein). If you are not in such compliance, we may, in our sole judgment, do any or all of the following until you fully correct the breach or default or HealthSource Chiropractic terminates this Agreement:

    • a. deny you access to the HealthSource Chiropractic website or Intranet;
  • b. remove your Franchised Business from the Franchised Business locator page and/or remove your interior pages, on the HealthSource Chiropractic Website;

  • c. remove your Franchised Business from the list of Franchised Businesses to which inquiries are referred;

  • d. remove your Franchised Business from the list of Franchised Businesses that are entitled to HealthSource Chiropractic-related discounts from approved vendors; and/or

  • e. remove your Franchised Business from the list of Franchised Businesses that are approved to participate in national or other alliance programs.

HealthSource Chiropractic may take any or all of these actions in addition to or instead of giving you notice of default and/or termination under this Agreement. You acknowledge and agree that HealthSource Chiropractic's withholding of performance services in accordance with this Section 15.4 will not constitute a breach of this Agreement and/or a defense to the enforcement by us of any provision of this Agreement, including the right to receive payment of Continuing Franchise Fees as provided in Section 6.2. You also acknowledge and agree that, should we choose to withhold performance rather than terminate this Agreement, HealthSource Chiropractic's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.

16. RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.

16.1 Payment of Amounts Owed to HealthSource Chiropractic.

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Agreement, Healthsource Chiropractic can deny a franchisee access to the Healthsource Chiropractic website or Intranet if the franchisee is not in full compliance with all duties and obligations to Healthsource Chiropractic under the agreement and the Operations Manual. Additionally, Healthsource Chiropractic can remove a franchisee's business from the business locator page and/or remove interior pages on the Healthsource Chiropractic Website if the franchisee is not compliant.

Healthsource Chiropractic also has the right to use the Ad Fund to pay for costs associated with website development and marketing, including search engine optimization and social media. This indicates that franchisees may be required to participate in the franchisor's website and marketing strategies.

These stipulations mean that a Healthsource Chiropractic franchisee's online presence and website functionality are closely tied to their compliance with the franchise agreement and the franchisor's marketing strategies. Failure to adhere to the agreement can result in restricted access or removal from the Healthsource Chiropractic website, potentially impacting the franchisee's online visibility and marketing efforts. The franchisee is also required to pay a monthly Technology Fee, as defined and discussed in Section 11.4, for certain Website and technology-related services and expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.