What must the Transfer Agreement include regarding claims against Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
of the lease of the Premises to the Proposed New Owner;
- e. you must pay us a non-refundable Transfer fee in the amount of $10,000.00 concurrently with the execution of the Transfer Agreement, described in Section 14.5f below, and you must reimburse us for any reasonable expenses incurred by us in investigating and processing any Proposed New Owner where the Transfer is not consummated for any reason;
- f. you and your Principal Owners must execute a Transfer Agreement, which will include (i) a general release (in a form satisfactory to us) of any and all claims you and/or they may have against us, our affiliates, and our and our affiliates' respective officers, directors, employees, and agents, and (ii) acknowledgment that the restrictive covenants set forth in Article 9 of this Agreement will survive the Transfer to the extent set forth therein;
- g.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Transfer Agreement must include a general release of any and all claims the franchisee and their Principal Owners may have against Healthsource Chiropractic, its affiliates, and their respective officers, directors, employees, and agents. This release must be in a form satisfactory to Healthsource Chiropractic.
This requirement means that a franchisee looking to transfer their franchise must waive any existing or potential future claims against Healthsource Chiropractic as a condition of the transfer. This protects Healthsource Chiropractic from potential legal action by the outgoing franchisee related to the franchise agreement or its operation.
Additionally, the Transfer Agreement must include an acknowledgment that the restrictive covenants outlined in Article 9 of the Franchise Agreement will remain in effect even after the transfer, to the extent specified in that article. This ensures that the original franchisee remains bound by non-compete and confidentiality obligations, even after they have transferred the franchise to a new owner.
In addition to the Transfer Agreement requirements, the franchisee must pay Healthsource Chiropractic a non-refundable transfer fee of $10,000.00 concurrently with the execution of the Transfer Agreement. They must also reimburse Healthsource Chiropractic for any reasonable expenses incurred while investigating and processing any Proposed New Owner where the transfer is not completed for any reason.