What is the effect of submitting the Franchise Deposit Acknowledgement for a Healthsource Chiropractic franchise?
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. 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.
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- Non-Disclosure of Confidential Information.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, submitting the Franchise Deposit Acknowledgement along with the required deposit initiates several important actions. Upon receipt of the signed Acknowledgment and the deposit, Healthsource Chiropractic agrees to reserve the specified protected territory for the applicant, preventing them from granting it to another party until the designated Deadline Date. Additionally, Healthsource Chiropractic will provide the applicant with access to training, information, and materials relevant to operating a Healthsource Chiropractic clinic. The deposit amount is specified in the Acknowledgement.
However, the FDD also clarifies that the deposit becomes fully earned by Healthsource Chiropractic upon submission of the Acknowledgement. This covers the processing of the application, reserving the protected territory, initial training, and disclosure of confidential information. 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 and cannot use any of Healthsource Chiropractic's marks, logos, information, or materials. In this case, Healthsource Chiropractic is free to grant the territory to another party.
Furthermore, the FDD emphasizes that accepting the deposit does not grant the applicant any rights to operate a Healthsource Chiropractic clinic or use Healthsource Chiropractic's intellectual property. These rights are only conferred through a duly executed Franchise Agreement. After submitting the deposit, Healthsource Chiropractic may disclose confidential and proprietary information to the applicant, including details about services, products, sales performance, sources of products, advertising programs, methods, techniques, and training procedures. The applicant is obligated to maintain the confidentiality of this information and can only use it for the operation of a Healthsource Chiropractic franchise, even if a Franchise Agreement is never finalized.