When is my entire deposit deemed earned by HealthSource Chiropractic?

According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, your entire deposit is deemed earned by HealthSource Chiropractic upon your submission of the Franchise Deposit Acknowledgement. This means that once you submit the signed form, HealthSource Chiropractic considers the deposit as earned income.

HealthSource Chiropractic states that the deposit is earned for several reasons, including the processing of your application, reserving the protected territory for your potential franchise, providing initial training, disclosing confidential information, and for services performed following the approval of your application. This indicates that HealthSource Chiropractic begins incurring costs and dedicating resources as soon as they receive your deposit and signed acknowledgement.

It is important to note that even though the deposit is deemed earned, it will be applied toward the initial franchise fee if you and HealthSource Chiropractic enter into a Franchise Agreement. However, if you do not sign a Franchise Agreement or fail to pay the remaining portion of the initial franchise fee by the Deadline Date, you will not have the right to operate a HealthSource Chiropractic franchise, and HealthSource Chiropractic may grant the protected territory to another person or entity. This highlights the risk of losing the deposit if you do not proceed with the franchise agreement.

Furthermore, HealthSource Chiropractic emphasizes that accepting the deposit does not grant you any rights to operate a HealthSource Chiropractic clinic or use their marks, logos, information, or materials. These rights are only granted through a duly executed Franchise Agreement. Therefore, the deposit serves as a commitment to continue the process of obtaining a franchise, but it does not guarantee the grant of a franchise.