Business**

HealthSource Chiropractic businesses (individually, a "Clinic" or "Clinic," and collectively, "Clinics" or "Clinics") provide "progressive rehabilitation" therapy, combining chiropractic adjustments/chiropractic manipulative therapy with soft tissue rehabilitation to provide relief of pain as well as functional restoration and wellness care whenever possible for their patients. The term "Clinic" includes "Clinic Management Businesses" (as each are defined below). HealthSource Chiropractic Clinics use cutting-edge technology, including non-surgical Spinal Decompression therapy and photobiomodulation, to diagnose and treat issues causing pain and functional impairment for the patient. Patients are treated with the goal to restore lost function and make them pain-free, regardless of whether their pain is chronic or acute.

The Franchises Offered

We currently offer one type of franchise: Clinic franchises. In the past, we have offered Regional Developer franchises, and certain of those Regional Developer franchises continue to operate. This Franchise Disclosure Document is for our Clinic franchises. We have offered these franchises since February 2006.

Clinic Franchises. We franchise the right to operate a single Clinic that must be physically located in a designated geographic area (the "Protected Territory") under the "HealthSource Chiropractic" name and other authorized names and marks (the "Marks"), using a system of distinctive operating procedures, methods, and standards that we have developed (the "System"). Clinic franchises will only be offered and sold to individuals licensed to practice or provide chiropractic care unless otherwise permitted by law, or unless you operate a Clinic as a Clinic Management Business (as defined below). You may purchase your franchise as a new, start-up Clinic (a "Start-Up Clinic"), or you may convert an existing chiropractic clinic to a HealthSource Chiropractic Clinic (a "Conversion Clinic"). You will sign our standard franchise agreement attached as Exhibit B (the "Franchise Agreement") when you purchase your Clinic franchise. In the past, we have negotiated the terms of the Franchise Agreement with certain franchises. HealthSource Chiropractic, LLC will be the contracting party under the Franchise Agreement and under no circumstances will our Regional Developer franchises sign the Franchise Agreement on our behalf.

In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide chiropractic care, and are willing to undertake the investment and effort to own and operate a business that will

manage a Start-Up or Conversion Clinic under the System;

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)