Does a waiver by Healthsource Chiropractic of a breach of the franchise agreement operate as a waiver of any subsequent breach?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic's waiver of a breach in the franchise agreement does not constitute a waiver of any subsequent breaches. Specifically, if Healthsource Chiropractic does not exercise a right or power available to them under the agreement, or does not insist on the franchisee's strict compliance with the terms of the agreement, it will not be deemed a waiver of their right to demand exact compliance with any of the terms of the agreement at a later time.

Furthermore, Healthsource Chiropractic's waiver of any particular breach or series of breaches under the agreement, or of any similar term in any other agreement between Healthsource Chiropractic and any other Healthsource Chiropractic franchisee, will not affect their rights with respect to any later breach. The acceptance of payments that are due under the agreement will also not be deemed a waiver of any breach of the agreement.

This section of the FDD protects Healthsource Chiropractic's right to enforce the franchise agreement in the future, even if they have been lenient or made exceptions in the past. This is a common provision in franchise agreements, as it allows the franchisor to maintain flexibility in managing its franchise system without inadvertently giving up its right to enforce the agreement's terms. For a prospective franchisee, this means they cannot rely on past leniency or exceptions as a basis for non-compliance in the future.