Does the requirement to attempt internal dispute resolution with Healthsource Chiropractic survive termination of the agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
16.6 Continuing Obligations. All obligations of this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full or by their nature expire. Without limiting the foregoing, you acknowledge and agree that your covenants in Article 9 above survive the termination or expiration of this Agreement to the extent set forth in such Article 9.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the agreement includes a general clause regarding obligations that survive termination, but it does not explicitly mention dispute resolution. Section 16.6 states that all obligations that expressly or by their nature survive the expiration or termination of the agreement will continue in full force and effect. It also specifies that the covenants in Article 9 survive termination or expiration.
However, without a specific mention of dispute resolution, it's unclear whether this obligation continues after the agreement ends. Article 9 would need to be reviewed to determine if it contains information about dispute resolution.
A prospective Healthsource Chiropractic franchisee should seek clarification from the franchisor regarding whether the requirement to attempt internal dispute resolution survives the termination of the franchise agreement. It would be prudent to understand which specific obligations continue after termination to fully grasp their responsibilities and rights.