for any other product, service, or equipment.

Our Involvement with Suppliers

We and our affiliates and designees reserve the right to receive revenue or other material consideration from suppliers in consideration for other goods or services that we require or advise you to obtain from approved suppliers. We anticipate that any revenue or other consideration received would probably include promotional allowances, rebates, volume discounts, and other payments, and which range from zero to 50 percent of the amount of the goods or services you purchase from the supplier. In fiscal year 2024, our revenue totaled $6,893,645. Of this total, $335,649 or 4.9% of our total revenue, was derived from franchise purchases or leases, including but not limited to purchases of services provided by HealthSource Chiropractic, as well as products and services purchased from third party suppliers that pay us a rebate and other payments for franchise purchases. These figures do not include the revenues received by our affiliate, Octalean (which receives net revenues from the voluntary HS Masterminds program used by some HealthSource Chiropractic franchises). Our affiliate, Octalean, obtained revenues from the sale of services to HealthSource Chiropractic franchisees in the amount of $245,418 in the 2024 fiscal year. We expect that at least some of these arrangements will generally allow us to obtain discounts off standard pricing and pass at least a portion of the savings on to you.

The approved supplier for certain chiropractic equipment, Pivotal Health Solutions, also pays us a rebate of 5% on all purchases made by our franchises. The approved supplier for certain chiropractic, massage, acupuncture, physical therapy, rehabilitation, and other equipment, fitness supplies, vitamins, and retail display units, WBC Group, LLC, pays us a rebate of 5% of all purchases made by our franchises from WBC Group, LLC, except that we do not receive any rebate on retail display units purchased by our franchises. A supplier for certain merchant/credit card services for Clinic franchises, OpenEdge Payments LLC, pays us a rebate of 50% of the difference of OpenEdge Payments LLC's fee revenues generated from transactions conducted by Clinic franchises and its expenses relating to same. The approved supplier for certain merchant/credit card services, Fortis Payment Systems, LLC, pays us a rebate of 10% of profit received from approved merchants on the transactions conducted by our franchises. The approved supplier for certain chiropractic equipment, Saatva, also pays us a rebate of 6.5% on all purchases made by our franchises. The approved supplier for certain chiropractic equipment, NCMIC, also pays us a rebate of 1% on all purchases made by our franchises. The approved supplier for certain products, Liberty Distribution, LLC, also pays us a rebate of $5/bottle on all purchases made by our franchises. The approved supplier for certain brand materials and marketing communications, Xpress Docs LTD., pays us a rebate of 5% on all purchases made by our franchises. The approved supplier for CBD-based wellness products, Kerwell, pays us a rebate of 3% of all purchases made by our franchises. The approved supplier for certain marketing services, Paradigm Development Group, pays us a monthly rebate of $100/franchise that utilizes their services. Our approved supplier for certain chiropractic equipment, Zimmer Medizinsystems, Corp, pays us rebate of $2,688 on each single unit sold to our franchises and $3,210 on two units sold to our franchises. Our approved supplier for certain chiropractic equipment, BioKinemetrics, pays us a rebate of $700/unit purchased by our franchises. We use the funds received from the above-described suppliers to offset speaker and facility costs associated with our annual multi-day conference.

We negotiate price terms and other purchase arrangements with suppliers for you for some items that we require or suggest you to lease or purchase in developing and operating your HealthSource Chiropractic franchise, including clothing, marketing materials, services,

supplements, pillows, and various physical therapy supplies and equipment. There currently are no purchasing and distribution cooperatives.

Effects of Compliance and Noncompliance

You must comply with our requirements to purchase or lease real estate, goods, and services according to our specifications and/or from approved suppliers to be eligible to renew your franchise.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)