Under what conditions is Healthsource Chiropractic entitled to temporary and permanent injunctions?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or HealthSource Chiropractic franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic, given appropriate notice, can seek temporary and permanent injunctions and orders of specific performance without needing to post a bond.
This legal recourse is available to Healthsource Chiropractic under several conditions. These conditions include enforcing the franchise agreement's stipulations regarding the franchisee's use of Healthsource Chiropractic's Marks, and the franchisee's obligations related to non-disclosure, non-solicitation, non-disparagement, and non-competition. This also extends to any Restrictive Covenants Agreement signed by a General Manager.
Healthsource Chiropractic can also pursue injunctions to prevent any actions or omissions by the franchisee or their employees that violate applicable laws, ordinances, or regulations, pose a danger to the public, or potentially damage the goodwill associated with Healthsource Chiropractic's Marks or franchises. Furthermore, injunctions can be sought to prevent any other irreparable harm to Healthsource Chiropractic's interests.
If Healthsource Chiropractic successfully obtains an injunction or order of specific performance, the franchisee is responsible for covering all associated costs. These costs encompass reasonable attorneys' and expert witness fees, expenses for investigation and proof of facts, court costs, other litigation expenses, travel and living expenses, and any damages Healthsource Chiropractic incurs due to the breach. The franchisee also agrees to waive any claims for damages if an injunction or specific performance order is later determined to have been issued improperly.