Does the term 'Franchisor' in the Healthsource Chiropractic agreement include successors?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 Transfer by HealthSource Chiropractic. You represent that you have not signed this Agreement in reliance on any owner, officer, or employee remaining with us in that capacity. We may change our ownership or form at any time in our sole discretion. This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic can transfer the franchise agreement to another entity.
Specifically, Healthsource Chiropractic can transfer the agreement without any restrictions. The agreement will benefit any person or entity to whom it is transferred or any other legal successor to Healthsource Chiropractic's interests in the agreement.
After Healthsource Chiropractic assigns the agreement to a third party who expressly assumes their obligations, Healthsource Chiropractic will no longer have any performance or other obligations or liabilities under the agreement. This means a new franchisee would need to be comfortable with the possibility of a new franchisor.