How is the Healthsource Chiropractic franchisee's Protected Territory defined, and where is it described?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchisee's protected territory is described in Exhibit 1 of the Franchise Agreement. The agreement grants the franchisee the right to operate their Healthsource Chiropractic franchise only at a specific location, referred to as the Premises. As long as the franchisee remains in full compliance with the Franchise Agreement, Healthsource Chiropractic and its affiliates will not operate or grant another franchise for a clinic physically located within the Protected Territory outlined in Exhibit 1.

Prior to signing the Franchise Agreement, a prospective franchisee's application for a franchise to operate a Healthsource Chiropractic clinic in a specific area, the Protected Territory, must be approved. As part of the process, the applicant submits a Franchise Deposit Acknowledgement along with a deposit. Upon receipt of the signed Acknowledgment and deposit, Healthsource Chiropractic agrees not to grant the Protected Territory to any third party until a specified Deadline Date.

However, if a Franchise Agreement is not signed, or the initial franchise fee is not paid by the Deadline Date, the applicant loses the right to operate a Healthsource Chiropractic franchise in the Protected Territory. Healthsource Chiropractic then reserves the right to grant the territory to another person or entity. The acceptance of the deposit by Healthsource Chiropractic does not grant any rights to operate a clinic or use Healthsource Chiropractic's marks unless a Franchise Agreement is executed by both parties.