Under what conditions can Healthsource Chiropractic terminate the franchise agreement if a transfer occurs?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchise agreement can be terminated if the customer ceases to be a franchisee in good standing. HealthCore can suspend or terminate the agreement with notice to the customer if Healthsource Chiropractic notifies HealthCore that the customer is not in good standing under their franchise agreement.

This means that if a Healthsource Chiropractic franchisee fails to meet the standards and obligations set forth in their franchise agreement, Healthsource Chiropractic can notify HealthCore, which may then lead to the termination of the service agreement between HealthCore and the franchisee. The determination of 'good standing' rests with Healthsource Chiropractic, giving them the authority to trigger the termination process.

For a prospective franchisee, this highlights the importance of maintaining compliance with all aspects of the franchise agreement to avoid jeopardizing not only their franchise but also related service agreements. It also emphasizes the interconnectedness of various agreements and the potential for a single point of failure (i.e., not being in good standing with Healthsource Chiropractic) to have cascading consequences.