Under what condition can a Healthsource Chiropractic franchisee recruit or hire an employee from another HealthSource Chiropractic location?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. You agree not to recruit or hire, either directly or indirectly, any employee (or a former employee, for six (6) months after his or her employment has ended) of any HealthSource Chiropractic Clinic or Regional Developer franchise operated by us, our affiliates, or another HealthSource Chiropractic franchise owner without first obtaining the written consent of us, our affiliate, or the franchise owner that currently employs (or previously employed) such employee. (If you violate this provision, in addition to any other right or remedy we may have, you agree to pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. This amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach).
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a franchisee is restricted from recruiting or hiring employees from other Healthsource Chiropractic locations without permission. Specifically, a franchisee cannot directly or indirectly recruit or hire any employee (or former employee within six months of their departure) from another Healthsource Chiropractic clinic or a Regional Developer franchise operated by Healthsource Chiropractic, its affiliates, or another franchisee, unless they first obtain written consent.
This policy extends not only to current employees but also to those who have left their previous Healthsource Chiropractic employment within the past six months. This measure aims to protect franchisees and the franchisor from losing valuable staff members to other locations within the Healthsource Chiropractic system. It ensures that franchisees invest in their employees without the immediate risk of them being poached by another clinic.
If a Healthsource Chiropractic franchisee violates this provision by hiring someone without the required written consent, they agree to pay a significant penalty. This penalty includes paying the employee's current or former employer twice the employee's annual salary, in addition to covering all costs and attorneys' fees incurred as a result of the violation. Healthsource Chiropractic specifies that this amount is a reasonable estimation of damages resulting from such a breach, acknowledging the difficulty in precisely calculating the actual damages.
Prospective Healthsource Chiropractic franchisees should be aware of this restriction and the associated financial implications. Before considering hiring an employee from another Healthsource Chiropractic location, they must obtain explicit written consent from the relevant parties (Healthsource Chiropractic, its affiliates, or the other franchise owner). This policy underscores the importance of respecting the established network and protecting the investments made by individual franchisees in their staff.