Under what circumstances does the Healthsource Chiropractic franchise agreement automatically terminate and revert to the franchisor without notice or action?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchise agreement will immediately and automatically terminate, with all rights reverting to Healthsource Chiropractic, without any further notice or action required on their part if the franchisee defaults in any respect.

Additionally, Healthsource Chiropractic can terminate the Franchise Agreement if their legal counsel determines any provision is contrary to law, and they cannot negotiate an amendment to conform to legal requirements after 30 days' notice. This also applies if the amendment requires a fundamental change to the Franchise Agreement.

This clause is a significant consideration for potential Healthsource Chiropractic franchisees. It highlights the importance of adhering strictly to the franchise agreement terms to avoid automatic termination. The provision regarding legal challenges to the agreement also introduces a degree of uncertainty, as Healthsource Chiropractic could terminate the agreement if legal issues arise and amendments are deemed insufficient.