Under what circumstances will the provisions of the Healthsource Chiropractic franchise agreement not run for purposes of prohibitions on competition and solicitation?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, certain provisions within the franchise agreement related to non-competition and solicitation are void and unenforceable in the state of Washington. This stems from RCW 49.62.060, which prohibits Healthsource Chiropractic from restricting or prohibiting a franchisee from soliciting or hiring any employee of either another Healthsource Chiropractic franchisee or Healthsource Chiropractic itself.
This means that Healthsource Chiropractic franchisees in Washington State have more freedom to hire and solicit employees compared to franchisees in other states. The amendment explicitly states that any conflicting provisions within the franchise agreement are superseded and rendered void within Washington. This assurance extends to any statement, questionnaire, or acknowledgment signed by a franchisee, ensuring that no document can waive claims under state franchise law or disclaim reliance on statements made by Healthsource Chiropractic.
For a prospective Healthsource Chiropractic franchisee in Washington, this is a significant benefit. It allows for greater flexibility in staffing and recruitment, potentially leading to a more competitive and efficient operation. However, franchisees should be aware that this exception applies specifically to Washington State due to its specific regulations. Franchisees operating outside of Washington will still be subject to the standard non-competition and non-solicitation clauses outlined in the franchise agreement.