What is the dependency for Healthsource Chiropractic to grant me rights to operate a clinic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
s judgment, waive or modify comparable provisions of any of those franchise agreements in a non-uniform manner, so long as we do so on a reasonably non-discriminatory basis.
2. GRANT OF FRANCHISE.
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a HealthSource Chiropractic Clinic, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a Franchise to operate a Clinic offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for HealthSource Chiropractic Clinics. You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years. The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the grant of a franchise is dependent on the applicant meeting Healthsource Chiropractic's qualifications and the approval of their application. The document states that Healthsource Chiropractic has approved the application in reliance on all of the representations made within it. The franchisee must operate the Healthsource Chiropractic clinic offering all products, services, and proprietary programs in accordance with all elements of the System. The franchisee must operate at a mutually agreeable site for an initial term of 10 years.
Healthsource Chiropractic grants the right to operate the franchise only at the specified premises. As long as the franchisee is in full compliance with the agreement, Healthsource Chiropractic and its affiliates will not operate or grant a franchise for another clinic physically located within the protected territory outlined in Exhibit 1.
For prospective franchisees, this means that securing a franchise involves meeting specific qualifications set by Healthsource Chiropractic and adhering to the terms outlined in the franchise agreement. The approval hinges on the accuracy of the information provided in the application. The franchisee's operational rights are confined to the approved location, and Healthsource Chiropractic commits to not establishing competing franchises within the protected territory, provided the franchisee remains compliant with the agreement.