What sections of the Healthsource Chiropractic Franchise Agreement outline the franchisee's pre-opening purchase and lease obligations?

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.

1. 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.

• 1. Approve the final construction plans and specifications for your Clinic (Franchise Agreement – Section 3.2). You must construct your Clinic in accordance with the final construction plans and specifications approved for your Clinic. See paragraph 4 above.
• 1. Identify the products, equipment, materials, inventory, supplies, and services you must use to develop and operate the Clinic (including, if applicable, our optional programs), the minimum standards and specificationsthat you mustsatisfy in developing and operating the Clinic, and the designated and approved suppliers from whom you must or may buy or lease these items (which might be limited to or include us and/or our affiliates) (Franchise Agreement – Section 5.1). We will not deliver or install these items for you. We are not obligated to assist the franchisee in establishing prices but reserve the right to establish minimum or maximum prices as permitted by law. We may provide suggestions; however, you will have the final determination on the pricing for goods and services.
• 1. Lend to you one copy of our Operations Manual, which contains our mandatory and suggested specifications, standards, and procedures for operating your Clinic (Franchise Agreement – Section 5.1-5.2). As part of the growth and expansion of HealthSource, and due to the nature of the business conducted by HealthSource Clinic franchisees, the Operations Manual has evolved into a series of written materials and guides and video and audio presentations, including online trainings and franchise system support, which are frequently updated and supplemented. These materials are made available to franchisees through a private, password protected internet portal. The "paper" Operations Manual to which the Table of Contents attached as Exhibit D relates is reflective of the web-based evolution and serves as a guide to accessing the main HealthSource system requirements, resources, and training opportunities.

Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)