What is the relationship between the number of units a Healthsource Chiropractic franchisee acquires the rights to develop and their Development Schedule?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Development Schedule will depend on the number of units you acquire the rights to develop in your Development Agreement. If you enter into an agreement granting you the rights to develop three units, your Development Schedule will be as follows:
| Expiration of Development Period (each, a "Development Period") | No. of New Clinics Opened Within Development Period | Cumulative No. of Clinics that Must Be Open and Operating |
|---|---|---|
| 12 Months from Effective Date | 1 | 1 |
| Months 13 through 24 | 1 | 2 |
| of the | ||
| Development Agreement | ||
| Months 24 | 1 | 3 |
| through 36 | ||
| of the | ||
| Development Agreement | ||
| If you purchase 4 or more | ||
| Clinics, your Development | ||
| Period for each successive Clinic | ||
| will be mutually agreed upon at | ||
| the time you enter a | ||
| Development Agreement. |
Source: Item 12 — Territory (FDD pages 44–47)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Development Schedule is directly related to the number of units a franchisee commits to developing under the Development Agreement. For franchisees who acquire the rights to develop three units, a specific schedule is outlined.
The Development Schedule dictates the pace at which the franchisee must open new Healthsource Chiropractic clinics. The schedule requires the franchisee to open one new clinic within the first 12 months from the effective date of the Development Agreement. Months 13 through 24 require the opening of another clinic, bringing the cumulative number of open clinics to two. Finally, months 24 through 36 necessitate the opening of a third clinic, resulting in a total of three open and operating clinics.
For franchisees purchasing the rights to develop four or more Healthsource Chiropractic clinics, the Development Period for each successive clinic will be mutually agreed upon with Healthsource Chiropractic at the time the Development Agreement is established. This implies a more flexible, negotiated timeline for larger development commitments, potentially taking into account the franchisee's resources, market conditions, and other relevant factors.
This schedule is important for prospective Healthsource Chiropractic franchisees to understand, as it sets clear expectations for the speed of expansion. Franchisees need to assess their ability to meet these deadlines, considering factors such as site selection, financing, and operational readiness. The flexibility offered for larger development agreements may be attractive to some, but it also requires careful negotiation to ensure achievable timelines.