Under what conditions is the Healthsource Chiropractic Termination Fee payable?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a termination fee is payable under specific circumstances related to the termination or closure of the franchise.

The termination fee, along with any costs and attorney's fees incurred by Healthsource Chiropractic, becomes payable if a franchisee improperly attempts to terminate or close their clinic or franchise before the expiration of the franchise term. Additionally, the fee is due if Healthsource Chiropractic terminates the Franchise Agreement for any reason outlined within the Franchise Agreement itself.

Furthermore, Healthsource Chiropractic may seek to recover damages resulting from the improper or wrongful termination of the franchise. These damages can include actual, economic, consequential, and indirect losses, such as the loss of future revenues. It is important to note that the enforceability of termination fees can vary by state, and additional information regarding termination can be found in Item 17 of the FDD. Therefore, prospective franchisees should carefully review the terms of the Franchise Agreement and consult with legal counsel to understand the specific conditions under which a termination fee may be imposed and whether such fees are enforceable in their state.