Upon termination of the Healthsource Chiropractic agreement, what happens to the license to use the premises?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Grant of Limited Rights to Licensed Provider.
- 4.1 Management Company hereby grants Licensed Provider a revocable, nonassignable license to use the Premises, and all fixtures, equipment, and furnishings located therein, during the Agreement Term. The license to use the Premises granted by this Section 4.1 is not a lease or sublease of the Premises and this Agreement shall not be interpreted to create a landlord and tenant relationship between Management Company (or the owner of the Premises) and Licensed Provider or to give Licensed Provider any right to continued use, possession or occupancy of the Premises, except to the extent expressly stated in this Agreement. This license shall be deemed to end automatically upon the termination of this Agreement. Licensed Provider shall use all fixtures, equipment and furnishings granted by this Section 4.1 in the manner in which they are intended and in compliance with all rules and requirements of Management Company and, if applicable, its landlord; provided, however, that in all cases Licensed Provider shall have the discretion and authority to use such fixtures, equipment and furnishings to provide Clinical Services only as deemed necessary or advisable by Licensed Provider in his/her discretion. Licensed Provider shall return to Management Company the Premises, fixtures, equipment, and furnishings in the same condition, reasonable wear and tear excepted, as they were in as of the date of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the license to use the premises granted to the Licensed Provider is revocable and nonassignable during the agreement term. Upon termination of the agreement, this license automatically ends. This means the franchisee no longer has the right to use the physical location as a Healthsource Chiropractic clinic.
Healthsource Chiropractic grants the Licensed Provider a revocable, non-assignable license to use the premises, including all fixtures, equipment, and furnishings, during the agreement term. The agreement explicitly states that this license is not a lease or sublease and does not create a landlord-tenant relationship. The franchisee's right to use, possess, or occupy the premises is limited to what is expressly stated in the agreement.
Upon termination, the franchisee must return the premises, fixtures, equipment, and furnishings to the Management Company in the same condition as they were at the start of the agreement, with reasonable wear and tear excepted. This ensures that the franchisee does not retain any rights to the physical location or its contents after the franchise agreement ends. The franchisee must also take steps to disassociate the premises from the Healthsource Chiropractic brand by removing signage, posters, and other items that identify it as a Healthsource Chiropractic franchise.