What is the deposit for a HealthSource Chiropractic franchise used for?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with making the Deposit, I understand and acknowledge the following:
- a.
My entire Deposit will be applied toward the Initial Franchise Fee payable under the HealthSource Franchise Agreement, if and when I enter into a Franchise Agreement with HealthSource.
- b.
Upon my submission of this Acknowledgement, my entire Deposit will be deemed earned by HealthSource for the processing of my application, for reserving the Protected Territory, providing initial training and disclosure of confidential information, and for services performed following approval of my application.
- c.
If HealthSource and I do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
- d.
HealthSource's acceptance of the Deposit does not constitute the grant of any rights to me to operate a HealthSource chiropractic clinic or use HealthSource's marks, logos, information or materials in practice or otherwise, and that such rights may only be granted through a Franchise Agreement that has been duly executed by both me and HealthSource.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 HealthSource Chiropractic Franchise Disclosure Document, the deposit you submit while applying for a franchise is used to cover several aspects of the initial franchise process. The entire deposit will be applied toward the initial franchise fee if you and HealthSource Chiropractic enter into a franchise agreement. Upon submission of the deposit, HealthSource Chiropractic considers it earned for several services. These services include processing your application, reserving your protected territory, providing initial training, and disclosing confidential information. The deposit also covers services performed after your application is approved.
It's important to note that if you and HealthSource Chiropractic do not sign a franchise agreement, or if you fail to pay the remaining portion of the initial franchise fee by the specified deadline, you will lose the right to operate a HealthSource Chiropractic franchise in the protected territory. You also will not be able to use any of HealthSource Chiropractic's trademarks, logos, information, or materials. In such a case, HealthSource Chiropractic reserves the right to grant the protected territory to another party.
HealthSource Chiropractic emphasizes that accepting the deposit does not automatically grant you the right to operate a clinic or use their intellectual property. These rights are only conferred through a duly executed franchise agreement. This arrangement is fairly standard in the franchise industry, where initial deposits are used to cover the franchisor's upfront costs in evaluating and preparing a new franchisee.