What is the process by which Healthsource Chiropractic grants a franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 2.3 Protected Territory; Reference to Exhibit 1; Reservation of Rights.
You acknowledge that the Franchise granted by this Agreement gives you the right to operate your Franchise only at the Premises.
Provided you are in full compliance with this Agreement, neither we nor our affiliates will operate or grant a franchise for the operation of another Clinic franchise physically located within the territory described in Exhibit 1 (the "Protected Territory").
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the franchise grant process begins with an application to own and operate a HealthSource Chiropractic Clinic. HealthSource Chiropractic must approve this application, relying on the representations made within it. Upon approval and subject to the provisions outlined in the Franchise Agreement, 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, starting on the agreement date.
To continue the process of obtaining a franchise, the applicant submits a Franchise Deposit Acknowledgement along with a deposit. Upon receipt of the signed Acknowledgment and deposit, HealthSource Chiropractic agrees not to grant the protected territory to any third party until after a specified deadline date and to provide access to certain training, information, and materials related to operating a HealthSource Chiropractic clinic. The deposit is applied toward the initial franchise fee if a Franchise Agreement is entered into. However, the acceptance of the deposit does not constitute the grant of any rights to operate a HealthSource Chiropractic clinic until a Franchise Agreement is duly executed by both parties.
The franchise gives the franchisee the right to operate their franchise only at the specified premises. Provided the franchisee is in full compliance with the agreement, HealthSource Chiropractic will not operate or grant a franchise for another clinic physically located within the protected territory described in Exhibit 1. The franchisee must agree to operate the franchise, perform the obligations of the agreement, and continuously exert their best efforts to promote and enhance the business of the franchise for the entire initial term and any subsequent renewal or extension of the agreement.