What is the purpose of the Franchise Deposit Acknowledgement for a Healthsource Chiropractic franchise?
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. My entire Deposit will be applied toward the Initial Franchise Fee payable under the HealthSource Franchise Agreement, if and when I enter into a Franchise Agreement with HealthSource.
- b. Upon my submission of this Acknowledgement, my entire Deposit will be deemed earned by HealthSource for the processing of my application, for reserving the Protected Territory, providing initial training and disclosure of confidential information, and for services performed following approval of my application.
- c. 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.
- 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.
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- Non-Disclosure of Confidential Information. After I submit my Deposit, I further understand that HealthSource may disclose to me its confidential and proprietary information, including: (a) services and products offered and sold at HealthSource Chiropracticfranchises; (b) knowledge of sales and profit performance of any one or more HealthSource Chiropracticfranchises; (c) knowledge of sources of products sold at HealthSource Chiropracticfranchises, advertising and promotional programs, and image and decor; (d) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of HealthSource Chiropracticfranchises;
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Franchise Deposit Acknowledgement serves multiple purposes in the process of obtaining a franchise. By submitting the Acknowledgement along with the deposit, the applicant confirms their application has been approved, pending the signing of a Franchise Agreement and payment of the Initial Franchise Fee. The acknowledgement confirms that Healthsource Chiropractic agrees to hold the Protected Territory until a specified Deadline Date. In return, Healthsource Chiropractic will provide the applicant with access to training, information, and materials necessary to operate a Healthsource Chiropractic clinic.
The deposit is applied toward the Initial Franchise Fee if the applicant enters into a Franchise Agreement with Healthsource Chiropractic. Upon submission of the Acknowledgement, Healthsource Chiropractic considers the deposit earned for application processing, reserving the Protected Territory, initial training, disclosure of confidential information, and services performed after application approval. If a Franchise Agreement is not signed, or the remaining 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 and Healthsource Chiropractic may grant the territory to another party.
The Franchise Deposit Acknowledgement also addresses the non-disclosure of confidential information. After submitting the deposit, Healthsource Chiropractic may disclose confidential and proprietary information to the applicant, including details about services, products, sales performance, sources of products, advertising programs, methods, techniques, and training procedures. The applicant acknowledges that Healthsource Chiropractic owns this Confidential Information and agrees to maintain its confidentiality, use it only for operating a Healthsource Chiropractic franchise, and return all materials containing Confidential Information upon request, even if a Franchise Agreement is not finalized.