Is the location of the Healthsource Chiropractic clinic (the Premises) determined before or after signing the franchise agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You have applied for a franchise to own and operate a HealthSource Chiropractic Clinic, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a Franchise to operate a Clinic offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for HealthSource Chiropractic Clinics. You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the location of the clinic, referred to as the "Premises", is determined after the franchise agreement is signed. Specifically, the franchise agreement grants the franchisee the right to operate a HealthSource Chiropractic clinic at a site that is mutually agreed upon by both the franchisor and franchisee. This site selection occurs after the franchise agreement has been signed.
This means that prospective franchisees will enter into a franchise agreement with Healthsource Chiropractic before a specific location for their clinic has been finalized. The franchisee is expected to use their best efforts to find and select a proposed site within a designated Site Selection Area, as outlined in Exhibit 1 of the Franchise Agreement.
This arrangement is fairly common in franchising, as it allows the franchisor to maintain control over site selection to ensure brand consistency and optimal market placement. However, it also places the onus on the franchisee to actively search for and propose suitable locations, subject to the franchisor's approval. Franchisees should carefully review Exhibit 1 and understand the site selection criteria and approval process to avoid delays or disagreements in securing a location for their Healthsource Chiropractic clinic.