Which sections of the Healthsource Chiropractic Franchise Agreement and exhibits pertain to the franchisee's opening obligations?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your HealthSource Chiropractic Clinic for business, we or our designee will:
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- Designate your Protected Territory (Franchise Agreement Section 2.3). See Item 12 for additional information about your Protected Territory. You may only operate a Clinic physically located in your Protected Territory.
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- Review and approve or disapprove your proposed Clinic site (Franchise Agreement – Section 3.1). You must seek and select a mutually agreeable site within your Site Selection Area within 120 days after signing the Franchise Agreement. We will inform you of our approval or disapproval of your proposed site within 15 days of your proposal of the Clinic site. The site must meet our criteria for demographics; traffic patterns; parking; ingress and egress; character of neighborhood; competition from, proximity to, and nature of other businesses; size; appearance; and other physical and commercial characteristics. We require your Clinic to be a minimum of 1,800 square feet in size. Clinics are typically located in high-traffic strip malls. For each proposed site, you must submit to us, in the form we specify, a description of the site and any other information or materials that we may require. We will not unreasonably withhold approval of a site that meets our standards for general location and neighborhood, traffic patterns, parking size, layout, lease terms, and other physical characteristics for HealthSource Chiropractic Clinics. If you fail to identify a mutually agreeable site by the established deadline, then we may terminate your Franchise Agreement. Our approval of a proposed site is not, and should not be deemed, a judgment by us concerning the likelihood of success of a Clinic at the location, or the relative desirability of the site in comparison to other sites within the Protected Territory.
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- If we require, approve the terms of the lease for the premises of your Clinic (Franchise Agreement – Section 3.1). You must lease the premises for the Clinic within 180 days after signing the Franchise Agreement. We may terminate your Franchise Agreement if you do not sign your lease by this deadline. Generally, we do not own premises that are leased to
HealthSource Chiropractic Clinics. Your lease must include the provisions required by the Franchise Agreement, or you must obtain our express written approval as to any variations or exclusions of such provisions in your lease.
- Furnish you with one set of plans, specifications, and other materials reflecting our suggestions and requirements for layout, equipment, fixtures, decorations and signs for a HealthSource Chiropractic Clinic (Franchise Agreement – Section 3.2). Using an architect designated or approved by us, you must modify the plans and specifications to comply with all local ordinances, building codes, permit requirements, and lease requirements and restrictions applicable to the premises. You must submit final construction plans and specifications to us for our approval before you begin construction at the premises and you must construct the Clinic in accordance with those approved plans and specifications.
You must open your Clinic within 240 days after signing your Franchise Agreement if you are a Conversion Clinic or within 365 days if you are a Start-up Clinic. (Franchise Agreement – Section 3.3). If you purchase multiple Clinic franchises, we currently require that you open the second Clinic and each additional Clinic pursuant to your Development Schedule. We estimate that Clinics will typically open for business approximately 8 to 12 months after signing the Franchise Agreement. Factors affecting this length of time include locating a site and signing a lease, construction or remodeling of the site, completion of required training, financing arrangements, local ordinance and building code compliance, weather conditions, delivery and installation of equipment, fixtures, and signs, and hiring and training of your staff.
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, several sections within the Franchise Agreement and its exhibits outline the franchisee's obligations when opening a clinic. Item 11 references specific sections of the Franchise Agreement related to pre-opening obligations. Specifically, Section 2.3 addresses the designation of the Protected Territory, and Section 3.1 covers the review and approval of the clinic site and potentially the lease terms. Section 3.2 pertains to the plans, specifications, and other materials for the clinic's layout, equipment, and signage. Section 3.3 outlines the timeframe for opening the clinic, which is 240 days for a Conversion Clinic and 365 days for a Start-up Clinic.
These sections of the Franchise Agreement are crucial for prospective Healthsource Chiropractic franchisees as they detail the steps and requirements that must be met before opening their clinic. This includes site selection, lease negotiation (if required by Healthsource Chiropractic), clinic design and construction, and adherence to the specified opening timelines. Failing to meet these obligations and deadlines can potentially lead to termination of the Franchise Agreement.
It is important for potential franchisees to carefully review these sections and exhibits to fully understand their responsibilities and the franchisor's expectations during the pre-opening phase. Understanding these obligations will help ensure a smooth and timely opening of their Healthsource Chiropractic clinic and compliance with the terms of the Franchise Agreement.