What section of the Healthsource Chiropractic agreement leads to liquidated damages if breached?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
b. Liquidated Damages. You agree that precise damages are difficult to calculate for a breach or violation of the provisions of Section 9 of this Agreement. Therefore, if you breach or violate Section 9 of this Agreement it is agreed that we would suffer actual damages of at least Fifty Thousand Dollars. In addition to any liquidated damages permitted herein, you must pay to us any and all actual damages in excess of the liquidated amount, plus all attorneys' fees incurred by us as a direct or indirect result of any breach or violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Section 9 of the agreement specifies the conditions under which liquidated damages may be imposed. The document states that precise damages are difficult to calculate if a franchisee breaches or violates Section 9 of the agreement.
Therefore, the agreement stipulates that Healthsource Chiropractic would suffer actual damages of at least $50,000 if Section 9 is breached. This predetermined amount serves as liquidated damages to compensate Healthsource Chiropractic for the potential harm caused by the franchisee's violation.
In addition to the liquidated damages, the franchisee is also responsible for paying any actual damages that exceed the $50,000, along with all attorney's fees incurred by Healthsource Chiropractic as a direct or indirect result of the breach or violation. This provision ensures that Healthsource Chiropractic is fully compensated for any losses resulting from the franchisee's non-compliance with Section 9 of the agreement.