factual

What is the condition for Healthsource Chiropractic to not grant the Protected Territory to any third party?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

lletin: Practices of Business Consultants. We | | HSC is not engaged in rendering legal, accounting, | or other professional services or advice. | | your patients, taxes, employees, | If you require legal advice or other expert assistance, the services of a competent professional person should | | or disputes. | be sought. HSC is not a law firm. We do not practice law and cannot provide you with legal advice about | | Agreed and accepted by: | | | | | | Signature of Franchisee | Date | | | | | Printed Name | | | Acknowledged and agreed by: | |--------------------------------| | HealthSource Chiropractic, LLC | | | | By: | | Its: |

EXHIBIT K

Franchise Deposit Acknowledgment and Amendment

HEALTHSOURCE CHIROPRACTIC, LLC FRANCHISE DEPOSIT ACKNOWLEDGEMENT

TO HEALTHSOURCE CHIROPRACTIC, LLC:

1. Introduction. I understand that my application for the grant of a franchise to operate a HealthSource
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Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic agrees to not grant the Protected Territory to any third party until after a specified "Deadline Date." This agreement is contingent upon Healthsource Chiropractic receiving a signed Franchise Deposit Acknowledgement and a deposit from the prospective franchisee.

This arrangement provides a limited period of exclusivity while the potential franchisee completes the necessary steps to secure the franchise. During this time, Healthsource Chiropractic commits to reserving the territory and providing access to training, information, and materials to help the applicant evaluate the opportunity. This allows the applicant to proceed with their due diligence without immediate competition from other franchisees in the same area.

However, the agreement is time-sensitive. If a Franchise Agreement is not signed, or the remaining portion of the Initial Franchise Fee is not paid by the Deadline Date, the applicant loses the right to operate a Healthsource Chiropractic franchise in the Protected Territory. Healthsource Chiropractic then reserves the right to grant the territory to another person or entity. This underscores the importance of meeting all deadlines and fulfilling all obligations to secure the franchise rights.

It is important to note that Healthsource Chiropractic's acceptance of the deposit does not guarantee the grant of franchise rights. The rights to operate a Healthsource Chiropractic clinic and use their marks and materials are only granted through a fully executed Franchise Agreement. This arrangement protects Healthsource Chiropractic, ensuring that they are not obligated to award a franchise until all requirements are met and a formal agreement is in place.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.