Which section of the California Franchise Investment Law did Healthsource Chiropractic allegedly violate?
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 Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Commissioner of Financial Protection and Innovation of the State of California determined that Healthsource Chiropractic violated Section 31200 of the California Franchise Investment Law. This determination was made because the 2017 and 2018 disclosure documents failed to include a required disclosure concerning a personal bankruptcy of Mr. Brozek. To resolve this issue, Healthsource Chiropractic entered into a Consent Order with the California Commissioner of Financial Protection and Innovation. As part of the order, Healthsource Chiropractic agreed to stop the violation. Mr. Brozek is no longer employed by Healthsource Chiropractic.