What is the process by which Healthsource Chiropractic grants the Protected Territory to another person or entity?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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If HealthSource and I do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the grant of a protected territory to another person or entity occurs if a Franchise Agreement is not signed or the initial franchise fee is not paid by the specified deadline.
Specifically, before a Franchise Agreement is in place, an applicant can submit a Franchise Deposit Acknowledgement along with a deposit. Upon receipt of the signed Acknowledgment and deposit, Healthsource Chiropractic agrees to not grant the Protected Territory to any third party until after a specified date, referred to as the "Deadline Date."
However, if a Franchise Agreement is not signed or the entire remaining portion of the Initial Franchise Fee is not paid by the Deadline Date, the applicant loses the right to operate a Healthsource Chiropractic franchise in the Protected Territory. In this case, Healthsource Chiropractic retains the right to grant all or any portion of the Protected Territory to another person or entity. The acceptance of a deposit by Healthsource Chiropractic does not guarantee the grant of rights to operate a clinic or use Healthsource Chiropractic's marks; these rights are only granted through a duly executed Franchise Agreement.