What is a 'Site Selection Area' in the context of a Healthsource Chiropractic development agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
nal programs, products and services may change from time to time.
- C. The System and Clinics are identified by means of certain trade names, service marks, trademarks, logos, emblems, and indicia of origin, including, but not limited, to the mark "HEALTHSOURCE", "HS", and "America's Chiropractor" and such other trade names, service marks, and trademarks as are now designated and may hereafter be designated by Franchisor in writing for use in connection with the System (the "Marks"). The parties agree and acknowledge that Franchisor has established substantial goodwill and business value in its Marks, expertise, and System.
- D. Franchisor grants qualified third parties the right to develop a certain number of Clinics within a defined site selection area (the "Site Selection Area") in accordance with the terms of this Agreement to which Developer must be strictly adhere, with each Clinic within the Site Selection Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then-current form of franchise agreement (each, a "Franchise Agreement").
- E.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, a Site Selection Area is a defined geographic area within which a developer has the right to develop a certain number of Healthsource Chiropractic clinics. This area is defined by geographic boundaries and is detailed in the Development Agreement, as noted in Attachment A.
The agreement specifies that the developer must strictly adhere to the terms of the agreement when opening and operating each clinic within the Site Selection Area. Each clinic must operate utilizing Healthsource Chiropractic's Marks and System, as outlined in the then-current form of the franchise agreement.
It's important to note that the Site Selection Area is non-exclusive, meaning the franchisee does not have exclusive territorial rights within that area. The franchisee is expected to use their best efforts to find a suitable site for their premises within this designated area. The selected premises must meet Healthsource Chiropractic's standards for location, size (minimum of 1,800 square feet), traffic patterns, parking, layout, and other physical characteristics. The franchisee must identify a mutually agreeable site within 120 days of the agreement date; failure to do so may result in termination of the agreement.