Is a Healthsource Chiropractic franchisee allowed to discount pricing to attract customers from another franchisee's protected territory?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees are explicitly prohibited from discounting their prices to attract customers residing within another franchisee's protected territory. This restriction is in place to protect each franchisee's customer base and revenue within their designated area. However, franchisees are permitted to solicit and sell services and products to customers outside their protected territory without any special compensation to the franchisor or other franchisees.

Healthsource Chiropractic franchisees can use various channels such as the internet, email, social media, telemarketing, or other direct marketing methods to reach customers outside their protected territory. Conversely, Healthsource Chiropractic clinics owned by the franchisor or other franchisees can also solicit and sell to customers within a franchisee's protected territory using similar channels without owing any compensation. This creates a competitive environment where franchisees must focus on retaining their local customer base while also exploring opportunities to attract customers from outside their primary territory through marketing and other outreach efforts.

The FDD also states that the franchisee's protected territory is determined by the population of the market, area demographics, and estimated market demand, typically encompassing a population of approximately 30,000 to 45,000 persons. The boundaries of the protected territory are mutually agreed upon when the Franchise Agreement is signed, especially if an approved location for the clinic exists at that time. This defined territory ensures that franchisees have a specific geographic area where they can expect a degree of exclusivity, subject to the exceptions noted regarding online and direct marketing by other franchisees and the franchisor.