What is the 'Protected Territory' for a Healthsource Chiropractic Clinic franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently offer one type of franchise: Clinic franchises. In the past, we have offered Regional Developer franchises, and certain of those Regional Developer franchises continue to operate. This Franchise Disclosure Document is for our Clinic franchises. We have offered these franchises since February 2006.
Clinic Franchises. We franchise the right to operate a single Clinic that must be physically located in a designated geographic area (the "Protected Territory") under the "HealthSource Chiropractic" name and other authorized names and marks (the "Marks"), using a system of distinctive operating procedures, methods, and standards that we have developed (the "System"). Clinic franchises will only be offered and sold to individuals licensed to practice or provide chiropractic care unless otherwise permitted by law, or unless you operate a Clinic as a Clinic Management Business (as defined below). You may purchase your franchise as a new, start-up Clinic (a "Start-Up Clinic"), or you may convert an existing chiropractic clinic to a HealthSource Chiropractic Clinic (a "Conversion Clinic"). You will sign our standard franchise agreement attached as Exhibit B (the "Franchise Agreement") when you purchase your Clinic franchise. In the past, we have negotiated the terms of the Franchise Agreement with certain franchises. HealthSource Chiropractic, LLC will be the contracting party under the Franchise Agreement and under no circumstances will our Regional Developer franchises sign the Franchise Agreement on our behalf.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Clinic franchise must be physically located in a designated geographic area, referred to as the "Protected Territory." Healthsource Chiropractic grants franchisees the right to operate a single clinic within this territory under the Healthsource Chiropractic name, utilizing their established system of operating procedures, methods, and standards.
For prospective franchisees, the Protected Territory is a crucial aspect of the franchise agreement. It defines the exclusive geographic area where they can operate their Healthsource Chiropractic clinic, providing a degree of market exclusivity. This protection helps prevent direct competition from other Healthsource Chiropractic franchises, allowing franchisees to build their customer base and establish their business without internal competition.
It is important to note that the specific size and boundaries of the Protected Territory are not detailed in this excerpt. Prospective franchisees should carefully review Item 12 of the Franchise Disclosure Document and the Franchise Agreement to understand the exact terms and conditions related to the Protected Territory, including any factors that may affect its size or exclusivity. Additionally, franchisees should inquire about the criteria used to determine the Protected Territory and whether it is based on population density, demographics, or other market factors.