What does the Healthsource Chiropractic FDD state is included as consideration for the agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 FDD, a deposit is required as consideration for the franchise agreement. The FDD states that the entire deposit will be applied toward the initial franchise fee if a Franchise Agreement is entered into with Healthsource Chiropractic. Upon submission of the acknowledgement, the entire deposit will be deemed earned by Healthsource for the processing of the application, for reserving the protected territory, providing initial training and disclosure of confidential information, and for services performed following approval of the application.
However, 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 will not have the right to operate a Healthsource Chiropractic franchise in the protected territory or use any Healthsource marks, logos, information or materials. In this case, Healthsource may grant all or any portion of the protected territory to another person or entity.
The FDD also clarifies that Healthsource's acceptance of the deposit does not grant any rights to operate a Healthsource chiropractic clinic or use Healthsource's marks, logos, information or materials. Such rights can only be granted through a Franchise Agreement that has been duly executed by both parties. This is a fairly standard practice in franchising, where an initial deposit secures the territory and covers preliminary services, but the full franchise rights are only conveyed upon signing the final agreement.