When is the Healthsource Chiropractic franchisee's Protected Territory designated?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
lletin: Practices of Business Consultants. We | | HSC is not engaged in rendering legal, accounting, | or other professional services or advice. | | your patients, taxes, employees, | If you require legal advice or other expert assistance, the services of a competent professional person should | | or disputes. | be sought. HSC is not a law firm. We do not practice law and cannot provide you with legal advice about | | Agreed and accepted by: | | | | | | Signature of Franchisee | Date | | | | | Printed Name | | | Acknowledged and agreed by: | |--------------------------------| | HealthSource Chiropractic, LLC | | | | By: | | Its: |
EXHIBIT K
Franchise Deposit Acknowledgment and Amendment
HEALTHSOURCE CHIROPRACTIC, LLC FRANCHISE DEPOSIT ACKNOWLEDGEMENT
TO HEALTHSOURCE CHIROPRACTIC, LLC:
| 1. Introduction. I understand that my application for the grant of a franchise to operate a HealthSource |
|---|
| Chiropractic, LLC |
| ("HealthSource") clinic in the area set forth on the attached map (the "Protected |
| Territory"), has been approved, subject to entering into a Franchise Agreement and paying the Initial |
| Franchise Fee. To continue the process of obtaining a franchise to operate a HealthSource Chiropractic |
| clinic in the Protected Territory, I am submitting this Franchise Deposit Acknowledgement (this |
| "Acknowledgement") and my deposit in the amount of $ (the "Deposit") to HealthSource. |
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchisee's protected territory is designated during the application process. Specifically, Healthsource Chiropractic approves the franchisee's application for a franchise to operate a clinic in a defined area, marked on an attached map, which constitutes the "Protected Territory." This approval is contingent upon the franchisee entering into a Franchise Agreement and paying the Initial Franchise Fee.
Upon receiving the signed Franchise Deposit Acknowledgement and the deposit, Healthsource Chiropractic commits to not grant the Protected Territory to any other party until after a specified "Deadline Date." During this period, the prospective franchisee gains access to training, information, and materials relevant to operating a Healthsource Chiropractic clinic. This arrangement provides a window for the applicant to finalize the franchise agreement while securing their exclusive rights to the territory.
Exhibit 1 to the Healthsource Chiropractic Franchise Agreement further defines the Protected Territory. The franchisee acknowledges that the franchise grants them the right to operate solely at the designated Premises. As long as the franchisee remains in full compliance with the agreement, Healthsource Chiropractic and its affiliates will not operate or franchise another clinic within the Protected Territory outlined in Exhibit 1. This clause ensures territorial exclusivity, protecting the franchisee's investment and market share within the agreed-upon area.