Does a Healthsource Chiropractic franchisee automatically have options to acquire additional clinics without a Development Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise granted pursuant to a Development Agreement, you have no options or rights of first refusal to acquire or purchase additional HealthSource Chiropractic Clinics.
Development Agreement
If you enter into a Development Agreement, provide a Development Schedule and assign a Site Selection Area for all Clinics that will be developed. The size of the Site Selection Area will likely vary among new prospects and developers, with the size of your Site Selection Area typically depending on the demographics of the area in and around the region you wish to develop.
We typically identify your initial Site Selection Area, early during the franchise due diligence and offer process, based on where you tell us you wish to operate, and the agreed-to geographic description is inserted into your Development Agreement before you sign it. The Site
Selection Area may not be modified at any time during the term of the Development Agreement unless the parties mutually agree to the modification in a separate signed writing.
Once you have secured a Premises for a given Clinic to be developed per your Development Agreement, we will grant you a Protected Area around that Clinic as described above. Once you have signed a lease for the last clinic in your development agreement, you will cease to have the rights to the Site Selection Area, and are only entitled to the protected territory granted to each individual clinic
Development Schedule
Your Development Schedule will depend on the number of units you acquire the rights to develop in your Development Agreement. If you enter into an agreement granting you the rights to develop three units, your Development Schedule will be as follows:
| Expiration of Development Period (each, a "Development Period") | No. of New Clinics Opened Within Development Period | Cumulative No. of Clinics that Must Be Open and Operating |
|---|---|---|
| 12 Months from Effective Date | 1 | 1 |
| Months 13 through 24 | 1 | 2 |
| of the | ||
| Development Agreement | ||
| Months 24 | 1 | 3 |
| through 36 | ||
| of the | ||
| Development Agreement | ||
| If you purchase 4 or more | ||
| Clinics, your Development | ||
| Period for each successive Clinic | ||
| will be mutually agreed upon at | ||
| the time you enter a | ||
| Development Agreement. |
Source: Item 12 — Territory (FDD pages 44–47)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees do not automatically have options or rights to acquire or purchase additional Healthsource Chiropractic clinics without a Development Agreement. The FDD specifies that, unless a Development Agreement is in place, a franchisee has no guaranteed rights to expand their business by acquiring additional locations.
A Development Agreement grants a Healthsource Chiropractic franchisee a Site Selection Area for developing multiple clinics, with the size of this area depending on local demographics. The initial Site Selection Area is typically identified early in the franchising process based on the franchisee's preferred operating location and is documented in the Development Agreement. This Site Selection Area cannot be modified during the Development Agreement's term unless both parties agree in writing.
Furthermore, the Development Schedule outlines the timeline for opening new clinics, which depends on the number of units the franchisee has the rights to develop. For instance, an agreement to develop three units requires opening one clinic within the first 12 months, another by month 24, and the third by month 36. Purchasing rights to four or more clinics necessitates a mutually agreed-upon Development Period for each successive clinic.
Once a franchisee secures a location for a clinic under the Development Agreement, Healthsource Chiropractic grants a Protected Area around that clinic. Upon signing a lease for the final clinic outlined in the Development Agreement, the franchisee's rights to the Site Selection Area cease, and they are then only entitled to the protected territory granted to each individual clinic.