information (see Item 14).

Approved Products, Distributors and Suppliers

We have developed standards and specifications for the leasehold improvements of your Clinic, the equipment and materials used to perform services at your Clinic, and products authorized for sale at your Clinic. We have approved, and will continue to periodically approve, specifications and/or suppliers and distributors of the above items, services and products, which may include us or our affiliates, that meet our standards and requirements. These specifications include standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations. You must (1) purchase products for sale by your Clinic in the quantities we designate; (2) use those formats, formulae, and containers

for products that we prescribe; and (3) purchase all products, services and other materials only from distributors and other suppliers we have approved.

We may approve a single distributor or other supplier (collectively, "supplier") for any product or service, and may approve a supplier only as to certain products or services. We may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services for any group of Clinics franchised or operated by us. Our approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and other similar criteria, and may be temporary, pending our continued evaluation of the supplier.

You are required to use our designated supplier for site selection assistance and construction project management. You must acquire a site for your Clinic that meets our site selection criteria and that we approve. If you occupy the Clinic according to a commercial lease, the lease must contain terms that we specify.

You must obtain the customer management, accounting, and billing software for the Computer System, (see Items 7 and 11), that you must use in operating your HealthSource Chiropractic franchise from HSWorx, or such other supplier as we may designate in the future.

We currently require our franchisees to enroll in and maintain certain human resources and payroll services provided by Paychex, Inc. The required services consist of payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding. Paychex, Inc. may also provide additional services at the option and cost of the franchisee.

If you would like to purchase or lease any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier or the proposed supplier may submit its own request. We may inspect the proposed supplier's facilities, and require that product samples from the proposed supplier be delivered for testing either directly to us or any independent certified laboratory that we designate. We also may require you (or the proposed supplier requesting the evaluation) to pay us an evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test (see Item 6) to make the evaluation. We will approve or disapprove your proposed supplier within 60 days of receiving all of the information that we require for the evaluation. We reserve the right to periodically re-inspect the facilities and products or services of any approved supplier, and revoke our approval if the supplier does not continue to meet any of our criteria.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)