Under what circumstances must a Healthsource Chiropractic franchisee pay a termination fee, and what does this fee cover?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) You must pay the termination fee, plus any costs and attorneys' fees incurred by us, if you improperly attempt to terminate or close your Clinic or franchise before your term expires, or we terminate your Franchise Agreement for any reason set forth in the Franchise Agreement. We may also recover from you any damages suffered by us (e.g., any actual, economic, consequential, and indirect damages incurred by us including, without limitation, the loss of future revenues) resulting from your improper or wrongful termination of the franchise. Termination fees may be unenforceable in certain states. See Item 17 for additional information.
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee must pay a termination fee, plus any costs and attorneys' fees incurred by Healthsource Chiropractic, if the franchisee improperly attempts to terminate or close their Clinic or franchise before the term expires. This fee also applies if Healthsource Chiropractic terminates the Franchise Agreement for any reason set forth in the Franchise Agreement.
In addition to the termination fee and associated costs, Healthsource Chiropractic may also recover any damages suffered as a result of the improper or wrongful termination. These damages can include actual, economic, consequential, and indirect damages, such as the loss of future revenues.
It is important to note that the enforceability of termination fees can vary by state. Prospective Healthsource Chiropractic franchisees should be aware of the specific termination clauses in their Franchise Agreement and understand the potential financial implications of early or improper termination, as these fees can be substantial and may include various types of damages beyond the initial termination fee.