What condition must a Healthsource Chiropractic franchisee meet to be granted a protected territory?

According to the 2025 Healthsource Chiropractic Franchise Agreement, a franchisee must be in full compliance with the agreement to be granted a protected territory. This means the franchisee must adhere to all terms and conditions outlined in the agreement to prevent Healthsource Chiropractic or its affiliates from operating or franchising another clinic within the defined protected territory.

Compliance covers various aspects of the franchise operation, including monetary obligations such as paying franchise fees and other amounts owed to Healthsource Chiropractic. It also includes non-monetary obligations, such as maintaining the standards and appearance of the clinic, using the premises only for the operation of the franchise, and adhering to the operational standards set by Healthsource Chiropractic.

The protected territory is described in Exhibit 1 of the Franchise Agreement and gives the franchisee the right to operate their franchise at a specific location. This protection ensures that, as long as the franchisee is meeting their obligations under the agreement, Healthsource Chiropractic will not establish another competing franchise within that territory, offering a degree of market exclusivity.

It is important for prospective franchisees to carefully review the Franchise Agreement and Exhibit 1 to fully understand the scope of the protected territory and all the compliance requirements necessary to maintain it. Failure to comply with the agreement could result in the loss of the protected territory, potentially impacting the profitability and success of the franchise.