What is the process for Healthsource Chiropractic to grant rights to operate a clinic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a HealthSource Chiropractic Clinic in accordance with the System in a specified geographic territory. This Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a HealthSource Chiropractic Clinic (we refer to your HealthSource Chiropractic franchise hereinafter as the "Franchise" or the "Franchised Business"). You may purchase and operate your Franchise as a new, start-up Clinic (a "Start-up Clinic"), or may convert an existing chiropractic practice to a HealthSource Chiropractic Clinic (a "Conversion Clinic").
2. GRANT OF FRANCHISE.
- 1 Term; Reference to Exhibit 1. 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. The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement. To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below). All
references to the "Term of this Agreement" refer to the period from the Agreement Date to the date on which this Agreement actually terminates or expires.
- 2.2 Full Term Performance.
You specifically agree to be obligated to operate the Franchise, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the business of the Franchise for the entire Initial Term, and any subsequent renewal or extension of the Term of this Agreement.
| 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. |
| Upon receipt of this signed Acknowledgement and the Deposit, HealthSource agrees to not grant the |
| Protected Territory to any third party until after, 20 (the "Deadline Date"), and to |
| provide me with access to certain training, information and materials relating to operating a HealthSource |
- d.
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 the 2025 Healthsource Chiropractic FDD, the franchise rights are granted to individuals who meet Healthsource Chiropractic's qualifications to own and operate a HealthSource Chiropractic Clinic within a specified geographic territory. The applicant must express a desire to obtain the right to develop, own, and operate a HealthSource Chiropractic Clinic. A prospective franchisee can either purchase and operate a new, start-up clinic or convert an existing chiropractic practice into a HealthSource Chiropractic Clinic.
Healthsource Chiropractic approves a franchise application based on the representations made within that application. Upon approval, Healthsource Chiropractic grants the franchisee the right to operate a clinic offering all products, services, and proprietary programs in accordance with the Healthsource Chiropractic system. The franchisee must operate at a mutually agreeable site for an initial term of 10 years, using the Healthsource Chiropractic system and marks. The franchisee is obligated to operate the franchise and continuously exert their best efforts to promote the business for the entire initial term and any subsequent renewals.
To begin the process of obtaining a franchise, once an application is approved, the applicant must submit a Franchise Deposit Acknowledgement along with a deposit. Upon receipt of the signed acknowledgement and deposit, Healthsource Chiropractic agrees not to grant the protected territory to any third party until a specified deadline date. Healthsource Chiropractic will also provide access to certain training, information, and materials related to operating a Healthsource Chiropractic clinic. The deposit will be applied toward the initial franchise fee if a Franchise Agreement is entered into. However, acceptance of the deposit does not grant any rights to operate a Healthsource Chiropractic clinic until a Franchise Agreement is executed by both parties.