What section of the Franchise Agreement requires the execution of a general release for Healthsource Chiropractic?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Section 2.4(c) of the Franchise Agreement requires franchisees and their Principal Owners to execute general releases as a condition of renewing their franchise. These releases must be in a form satisfactory to Healthsource Chiropractic.

This requirement means that as part of the renewal process, franchisees must waive any and all claims against Healthsource Chiropractic and its affiliates. This includes their respective owners, officers, directors, employees, and agents. The franchisee gives up the right to sue Healthsource Chiropractic for any past issues or grievances as a condition of renewing the franchise agreement.

The FDD also states that the terms of the renewal Franchise Agreement may differ materially from the original agreement, potentially including increased Continuing Franchise Fees and Ad Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms and paying a renewal fee of $10,000.00. This combination of factors—the general release, potentially less favorable terms, and a renewal fee—highlights the importance of carefully evaluating the renewal agreement and seeking legal counsel before proceeding.

For a prospective Healthsource Chiropractic franchisee, this underscores the need to maintain a positive relationship with the franchisor and resolve any disputes promptly during the initial term. It also emphasizes the importance of understanding all the terms of the renewal agreement and assessing the financial implications before committing to another term.