What is the process by which Healthsource Chiropractic reserves the Protected Territory?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT K
Franchise Deposit Acknowledgment and Amendment
HEALTHSOURCE CHIROPRACTIC, LLC FRANCHISE DEPOSIT ACKNOWLEDGEMENT
TO HEALTHSOURCE CHIROPRACTIC, LLC:
| 1. Introduction. I understand that my application for the grant of a franchise to operate a HealthSource |
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| 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 |
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- FDD. I have received the HealthSource Franchise Disclosure Document, and all Exhibits attached thereto, more than 14 calendar days before the date of my execution hereof. I have received a completed form of this Acknowledgement more than 7 business days before the date of my execution hereof.
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- Deposit Terms. In connection with making the Deposit, I understand and acknowledge the following:
- a.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, reserving a protected territory involves submitting a Franchise Deposit Acknowledgement along with a deposit. Once Healthsource Chiropractic receives the signed Acknowledgment and the deposit, they agree not to grant the protected territory to any other party. This reservation is only valid until a specified "Deadline Date."
The deposit is applied toward the initial franchise fee if a Franchise Agreement is eventually signed. However, the deposit is considered earned by Healthsource Chiropractic upon submission of the Acknowledgment. This covers the processing of the application, reserving the protected territory, providing initial training, disclosing confidential information, and other services performed after the application's approval.
If a Franchise Agreement is not signed, or the remaining portion of the initial franchise fee is not paid by the Deadline Date, the prospective franchisee loses the right to operate a Healthsource Chiropractic franchise in the protected territory. Healthsource Chiropractic then has the right to grant the territory to someone else. It's important to note that accepting the deposit does not grant any rights to operate a Healthsource Chiropractic clinic or use their trademarks until a Franchise Agreement is officially executed.