What section of the Healthsource Chiropractic Franchise Agreement addresses modifications to the agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| of the new owner to pay any amounts payable under the Franchise Agreement or any new Franchise Agreement that we may require the new owner to sign in connection with the transfer, and containing a general release of any claims that you may have against us. (see Exhibit I). | ||
| n. Our right of first refusal to | Not applicable. | Not applicable. |
| acquire your business | ||
| o. Our option to purchase your | Not applicable. | Not applicable. |
| business | ||
| p. Death or disability of franchisee | Section 14.6 | Executor, administrator, or other personal representative must transfer interest within 12 months; all transfers are subject to provisions in Franchise Agreement regulating transfers. |
| q. Non-competition covenants during the term of the franchise | Section 9.3 and 17.8 | Neither you, your Principal Owners, General Managers, nor any immediate family members of you or your Principal Owners may perform services for or have any interest in any competitive business. |
| r. Non-competition covenants after | Not applicable | Not applicable. |
| the franchise is terminated or | ||
| expires | ||
| s. Modification of the agreement | Section 20 | No modifications to Franchise Agreement unless you and we agree in writing; we may amend Operations Manual at any time. |
| t. Integration/merger clause | Section 20 | Only the Franchise Agreement applies (subject to state and federal law); all other agreements or promises not enforceable, except that nothing in the Franchise Agreement will operate to waive or disclaim your right to rely on the representations and claims asserted in this FDD. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Section 20 of the Franchise Agreement addresses modifications to the agreement. The FDD specifies that no modifications can be made to the Franchise Agreement unless both Healthsource Chiropractic and the franchisee agree to them in writing. However, Healthsource Chiropractic retains the right to amend the Operations Manual at any time.
This means that any changes to the core legal agreement require mutual written consent, protecting the franchisee from unilateral changes to the contract itself. However, franchisees should be aware that Healthsource Chiropractic can make changes to the Operations Manual, which could impact how the franchise is run. Franchisees should carefully review the Operations Manual and understand the scope of potential changes.
This is a fairly standard clause in franchise agreements. It is important for prospective franchisees to understand that while the core agreement is protected from unilateral changes, the franchisor typically retains the right to modify operational procedures and guidelines as outlined in the Operations Manual. Franchisees should clarify the process and frequency of Operations Manual updates during their due diligence.