What specific actions might Healthsource Chiropractic take if a franchisee defaults on purchasing requirements?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with our requirements to purchase or lease real estate, goods, and services according to our specifications and/or from approved suppliers to be eligible to renew your franchise. Failure to comply with these requirements will render you ineligible for renewal, and may be a default allowing us to terminate your franchise and/or withhold performance (including but not limited to removing your access to our website or any intranet, removing any information about your Franchise on our website, removing you from any lists for which inquiries for services are made, any lists of approved Franchises for which any of our approved supplies provide discounts or any lists that you are approved to participate in national or other alliance programs). We do not provide any other benefits to you because of your use of designated or approved services and products, or suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, failure to comply with the brand's requirements to purchase or lease real estate, goods, and services according to their specifications and/or from approved suppliers can have significant consequences for a franchisee. Specifically, non-compliance can render a franchisee ineligible for franchise renewal.
Beyond impacting renewal eligibility, Healthsource Chiropractic may consider non-compliance a default of the franchise agreement. This allows Healthsource Chiropractic to terminate the franchise agreement entirely. In addition to termination, Healthsource Chiropractic can withhold performance, which includes removing a franchisee's access to the Healthsource Chiropractic website or intranet. They can also remove any information about the franchise on their website and remove the franchisee from any lists for which inquiries for services are made. This extends to lists of approved franchises for which any of their approved suppliers provide discounts or any lists that the franchisee is approved to participate in national or other alliance programs.
Healthsource Chiropractic emphasizes that they do not provide any other benefits to franchisees because of their use of designated or approved services and products, or suppliers. This underscores the importance of adhering to the brand's purchasing requirements, as failure to do so can lead to serious repercussions, including the loss of the franchise itself and the removal of support systems crucial for business operations.