What is a 'Franchise Agreement' as it relates to a Healthsource Chiropractic developer opening Clinics?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a 'Franchise Agreement' dictates the terms under which a developer can open and operate individual Healthsource Chiropractic clinics within a designated area. Healthsource Chiropractic grants qualified third parties the right to develop a certain number of Clinics within a defined site selection area (the "Site Selection Area") in accordance with the terms of this Agreement to which Developer must be strictly adhere, with each Clinic within the Site Selection Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then-current form of franchise agreement (each, a "Franchise Agreement").

This agreement ensures that each clinic operates using Healthsource Chiropractic's established System and Marks. The System includes procedures, specifications, techniques and procedures that we may designate for operating a chiropractic business. This business model includes a clinic model offering all of our franchised services and products (individually, a "Clinic" or "Clinic," and collectively, the "Clinics" or "Clinics"). Subject to an additional fee, we also offer additional programs, products and services as more fully described herein, which additional programs, products and services may change from time to time. We identify the System by the use of certain trademarks, service marks and other commercial symbols, including the marks "HealthSource Chiropractic," "HS," and "America's Chiropractor" and certain associated designs, artwork and logos, which we may change or add to from time to time (the "Marks").

Prospective developers should carefully review the Franchise Agreement to understand their obligations and Healthsource Chiropractic's expectations for operating each clinic. The parties agree and acknowledge that Franchisor has established substantial goodwill and business value in its Marks, expertise, and System. This includes adhering to the System, using the specified Marks, and meeting other operational standards set by Healthsource Chiropractic. The Franchise Agreement is a legally binding document that outlines the rights and responsibilities of both the franchisor and the franchisee, ensuring consistency and quality across all Healthsource Chiropractic locations.