What was the resolution for Healthsource Chiropractic in the California case?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
The Commissioner of Financial Protection and Innovation of the State of California v. HealthSource Chiropractic, Inc. On July 20, 2021, we entered into a Consent Order with the California Commissioner of Financial Protection and Innovation (the "Commissioner"). The Commissioner determined that our 2017 and 2018 disclosure documents failed to contain a required disclosure concerning Mr. Brozek's personal bankruptcy and therefore violated Section 31200 of the California Franchise Investment Law. In order to resolve this matter we agreed to desist and refrain from the violation described above. Mr. Brozek is no longer employed by us.
Source: Item 3 — Litigation (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the case with the California Commissioner of Financial Protection and Innovation was resolved through a Consent Order. The Commissioner determined that Healthsource Chiropractic's 2017 and 2018 disclosure documents did not include a required disclosure about Mr. Brozek's personal bankruptcy, which violated Section 31200 of the California Franchise Investment Law.
To resolve the matter, Healthsource Chiropractic agreed to stop the violation. The FDD states that Mr. Brozek is no longer employed by Healthsource Chiropractic.
This type of resolution, where a company agrees to cease a particular action, is a common outcome in regulatory settlements. It's important for prospective franchisees to note that Healthsource Chiropractic took corrective action by entering into a Consent Order and ensuring the individual involved was no longer with the company. This indicates a willingness to address regulatory concerns and maintain compliance.