Are there any exceptions to the waiver of punitive damages in the Healthsource Chiropractic agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee agrees to waive claims for damages if an injunction or specific performance order is later determined to have been issued improperly.
Specifically, Healthsource Chiropractic is entitled to temporary and permanent injunctions and orders for specific performance to enforce provisions related to the use of marks, non-disclosure, non-solicitation, non-disparagement, and non-competition obligations. These measures can also be used to prohibit actions that violate laws or endanger the public, or to prevent harm to the goodwill associated with Healthsource Chiropractic franchises. If Healthsource Chiropractic obtains such an injunction or order, the franchisee is responsible for all associated costs, including attorney's fees, investigation costs, and damages resulting from any breach.
However, the franchisee agrees to waive any claims for damages if it is later determined that the injunction or specific performance order was issued improperly. This means that even if the franchisee suffers losses due to an injunction that is later overturned, they cannot seek compensation from Healthsource Chiropractic for those losses.