What rights does acceptance of the Deposit NOT grant to me regarding a Healthsource Chiropractic clinic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the acceptance of a deposit does not grant you the right to operate a Healthsource Chiropractic clinic. Specifically, it does not allow you to use Healthsource Chiropractic's marks, logos, information, or materials in practice or otherwise. These rights can only be granted through a fully executed Franchise Agreement signed by both you and Healthsource Chiropractic.
This means that paying the deposit and having it accepted only signifies that Healthsource Chiropractic will process your application, reserve the protected territory, provide initial training, and disclose confidential information. It does not give you any actual rights to operate under the Healthsource Chiropractic brand or system.
This is a common practice in franchising. The deposit primarily covers the franchisor's initial costs in evaluating and preparing to onboard a new franchisee. The actual franchise rights are only conveyed upon signing the Franchise Agreement and fulfilling all associated obligations, such as paying the full initial franchise fee.