What is the process for Healthsource Chiropractic to grant the Protected Territory to another person or entity?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if a franchisee does not sign a Franchise Agreement or pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, they will not have the right to operate a Healthsource Chiropractic franchise in the Protected Territory or use any Healthsource marks, logos, information or materials. In this case, Healthsource Chiropractic may grant all or any portion of the Protected Territory to another person or entity.

Prior to signing a franchise agreement, a prospective franchisee submits a Franchise Deposit Acknowledgement and a deposit to Healthsource Chiropractic. Upon receipt of the signed Acknowledgment and the Deposit, Healthsource Chiropractic agrees to not grant the Protected Territory to any third party until after a specified Deadline Date. This agreement also provides the prospective franchisee with access to certain training, information, and materials relating to operating a Healthsource Chiropractic.

This clause protects Healthsource Chiropractic, allowing them to reassign the territory if the initial applicant fails to finalize the franchise agreement and pay the required fees by the agreed-upon deadline. For a potential franchisee, this emphasizes the importance of meeting all obligations and deadlines to secure their rights to the Protected Territory. It also highlights the non-refundable nature of the deposit, as it is earned by Healthsource Chiropractic upon submission of the acknowledgement for services rendered in processing the application and reserving the territory.