What specific provisions of the Healthsource Chiropractic agreement can be enforced through injunctions?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
17.8 Specific Performance; Injunctive Relief; Liquidated Damages.
a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or HealthSource Chiropractic franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any
claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic is entitled to seek temporary and permanent injunctions and orders for specific performance under certain conditions, provided they give the franchisee appropriate notice and are not required to post a bond. These injunctions can be used to enforce provisions related to the franchisee's use of Healthsource Chiropractic's Marks, as well as non-disclosure, non-solicitation, non-disparagement, and non-competition obligations outlined in the agreement and any Restrictive Covenants Agreement signed by a General Manager.
Healthsource Chiropractic can also seek injunctions to prohibit any action or inaction by the franchisee or their employees that violates any applicable law, ordinance, or regulation, poses a danger to the public, or could harm the goodwill associated with Healthsource Chiropractic franchises or its Marks. Furthermore, injunctions can be used to prevent any other irreparable harm to Healthsource Chiropractic's interests.
If Healthsource Chiropractic successfully obtains an injunction or order of specific performance, the franchisee is responsible for covering all associated costs. These costs include reasonable attorneys' and expert witness fees, costs for investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. Additionally, the franchisee must pay any damages Healthsource Chiropractic incurs as a result of the breach of any provision for which the injunction was issued. The franchisee also agrees to waive any claims for damages if it is later determined that the injunction or specific performance order was issued improperly. This could create a significant financial burden for the franchisee if they are found in violation of the agreement and an injunction is put in place.