Under what grounds can a Healthsource Chiropractic franchisee terminate the Development Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 6.1 | The term begins on the effective date and ends on the earlier of the date you open the last Clinic you are required to open under your Development Schedule or the expiration of your Development Schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
| c. | Requirements for franchisee to renew or extend | Not Applicable | Not Applicable |
| d. | Termination by franchisee | Not Applicable | Franchisees may terminate the agreements under any grounds permitted by state law. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee may terminate the Development Agreement under any grounds permitted by state law. This means the specific reasons allowing a franchisee to terminate the agreement are determined by the laws of the state in which the franchisee operates.
This provision provides franchisees with rights that are legally protected at the state level, which can vary significantly depending on the jurisdiction. It is important for prospective franchisees to understand the specific laws in their state that govern franchise agreements and terminations. These laws may provide franchisees with certain protections or rights that are not explicitly detailed in the Development Agreement itself.
It is advisable that potential Healthsource Chiropractic franchisees consult with a legal professional experienced in franchise law within their specific state to fully understand their rights and obligations regarding termination of the Development Agreement. This will ensure they are aware of all possible grounds for termination available to them under state law.