What is the timeframe for satisfying a judgment against a Healthsource Chiropractic franchisee to avoid default?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. you are adjudged a bankrupt, become insolvent or make a general assignment for the benefit of creditors, or you fail to satisfy any judgment rendered against you for a period of 30 days after all appeals have been exhausted;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, a franchisee has 30 days to satisfy any judgment rendered against them after all appeals have been exhausted. Failure to do so constitutes a default under the franchise agreement.
This means that if a court issues a judgment against a Healthsource Chiropractic franchisee, and the franchisee unsuccessfully appeals that decision, they must pay the judgment within 30 days. If the franchisee does not satisfy the judgment within this timeframe, Healthsource Chiropractic can consider the franchisee to be in default of their agreement.
This clause protects Healthsource Chiropractic from franchisees who may be facing severe financial difficulties, which could negatively impact the brand. It is important for prospective franchisees to understand this requirement and ensure they have sufficient financial resources or insurance coverage to handle potential legal judgments. Franchisees should also be aware of the potential consequences of default, which could include termination of the franchise agreement.