What happens to my Deposit if I enter into a Franchise Agreement with Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
My entire Deposit will be applied toward the Initial Franchise Fee payable under the HealthSource Franchise Agreement, if and when I enter into a Franchise Agreement with HealthSource.
Upon my submission of this Acknowledgement, my entire Deposit will be deemed earned by HealthSource for the processing of my application, for reserving the Protected Territory, providing initial training and disclosure of confidential information, and for services performed following approval of my application.
If HealthSource and I do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
HealthSource's acceptance of the Deposit does not constitute the grant of any rights to me to operate a HealthSource chiropractic clinic or use HealthSource's marks, logos, information or materials in practice or otherwise, and that such rights may only be granted through a Franchise Agreement that has been duly executed by both me and HealthSource.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if you enter into a Franchise Agreement with Healthsource Chiropractic, your entire deposit will be applied toward the initial franchise fee. The FDD states that upon submission of the Franchise Deposit Acknowledgement, the deposit is deemed earned by Healthsource Chiropractic. This covers the processing of the application, reserving the protected territory, providing initial training, disclosing confidential information, and services performed after the application is approved.
However, if a Franchise Agreement is not signed, or the remaining portion of the initial franchise fee is not paid by the deadline date, the prospective franchisee will not have the right to operate a Healthsource Chiropractic franchise in the protected territory. They also cannot use any Healthsource Chiropractic marks, logos, information, or materials. In this case, Healthsource Chiropractic reserves the right to grant the protected territory to another person or entity.
It is important to note that Healthsource Chiropractic's acceptance of the deposit does not automatically grant any rights to operate a Healthsource Chiropractic clinic or use their intellectual property. These rights are only granted through a duly executed Franchise Agreement. This means that until the agreement is finalized, the applicant cannot act as a Healthsource Chiropractic franchisee.