What is the effect of Healthsource Chiropractic reserving the Protected Territory after I submit the deposit?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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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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| Chiropractic, LLC |
| ("HealthSource") clinic in the area set forth on the attached map (the "Protected |
| Territory"), has been approved, subject to entering into a Franchise Agreement and paying the Initial |
| Franchise Fee. To continue the process of obtaining a franchise to operate a HealthSource Chiropractic |
| clinic in the Protected Territory, I am submitting this Franchise Deposit Acknowledgement (this |
| "Acknowledgement") and my deposit in the amount of $ (the "Deposit") to HealthSource. |
| Upon receipt of this signed Acknowledgement and the Deposit, HealthSource agrees to not grant the |
| Protected Territory to any third party until after, 20 (the "Deadline Date"), and to |
| provide me with access to certain training, information and materials relating to operating a HealthSource |
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- FDD. I have received the HealthSource Franchise Disclosure Document, and all Exhibits attached thereto, more than 14 calendar days before the date of my execution hereof. I have received a completed form of this Acknowledgement more than 7 business days before the date of my execution hereof.
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- Deposit Terms. In connection with making the Deposit, I understand and acknowledge the following:
- a.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, upon submitting the Franchise Deposit Acknowledgement and the deposit, Healthsource Chiropractic agrees not to grant the Protected Territory to any third party until after the specified Deadline Date. This reservation provides the prospective franchisee with a temporary hold on the territory, preventing Healthsource Chiropractic from offering it to someone else during the period.
However, the acceptance of the deposit does not guarantee the right to operate a Healthsource Chiropractic clinic. The right to operate a franchise and use Healthsource Chiropractic's marks, logos, information, and materials is only granted through a fully executed Franchise Agreement. If a Franchise Agreement is not signed, or the remaining portion of the Initial Franchise Fee is not paid by the Deadline Date, the prospective franchisee loses the right to operate in the Protected Territory. Healthsource Chiropractic then has the right to grant the territory to another party.
In essence, the deposit secures the territory temporarily while the application is processed and the franchise agreement is being finalized. The deposit is deemed earned by Healthsource Chiropractic upon submission of the Acknowledgement for the processing of the application, reserving the Protected Territory, providing initial training and disclosure of confidential information, and for services performed following approval of the application. This arrangement is fairly standard in franchising, where an initial deposit demonstrates the serious intent of the prospective franchisee and compensates the franchisor for initial administrative and preparatory work.