Is there a Franchise Deposit Acknowledgment and Amendment included as Exhibit K for Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
EXHIBIT K
Franchise Deposit Acknowledgment and Amendment
HEALTHSOURCE CHIROPRACTIC, LLC FRANCHISE DEPOSIT ACKNOWLEDGEMENT
TO HEALTHSOURCE CHIROPRACTIC, LLC:
[Item 23: Receipts]
FDD.
I have received the HealthSource Franchise Disclosure Document, and all Exhibits attached thereto, more than 14 calendar days before the date of my execution hereof.
I have received a completed form of this Acknowledgement more than 7 business days before the date of my execution hereof.
Deposit Terms.
In connection with making the Deposit, I understand and acknowledge the following:
- a.
My entire Deposit will be applied toward the Initial Franchise Fee payable under the HealthSource Franchise Agreement, if and when I enter into a Franchise Agreement with HealthSource.
- b.
Upon my submission of this Acknowledgement, my entire Deposit will be deemed earned by HealthSource for the processing of my application, for reserving the Protected Territory, providing initial training and disclosure of confidential information, and for services performed following approval of my application.
- c.
If HealthSource and I do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
- 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.
Non-Disclosure of Confidential Information.
[Item 23: Receipts]
| 1. Introduction. I understand that my application for the grant of a franchise to operate a HealthSource |
|---|
| Chiropractic, LLC |
| ("HealthSource") clinic in the area set forth on the attached map (the "Protected |
| Territory"), has been approved, subject to entering into a Franchise Agreement and paying the Initial |
| Franchise Fee. To continue the process of obtaining a franchise to operate a HealthSource Chiropractic |
| clinic in the Protected Territory, I am submitting this Franchise Deposit Acknowledgement (this |
| "Acknowledgement") and my deposit in the amount of $ (the "Deposit") to HealthSource. |
| Upon receipt of this signed Acknowledgement and the Deposit, HealthSource agrees to not grant the |
| Protected Territory to any third party until after, 20 (the "Deadline Date"), and to |
| provide me with access to certain training, information and materials relating to operating a HealthSource |
[Item 23: Receipts]
Non-Disclosure of Confidential Information.
After I submit my Deposit, I further understand that HealthSource may disclose to me its confidential and proprietary information, including: (a) services and products offered and sold at HealthSource Chiropracticfranchises; (b) knowledge of sales and profit performance of any one or more HealthSource Chiropracticfranchises; (c) knowledge of sources of products sold at HealthSource Chiropracticfranchises, advertising and promotional programs, and image and decor; (d) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of HealthSource Chiropracticfranchises; and (e) the selection and methods of training employees, all of which may be disclosed verbally or visually via training programs, or in written form via HealthSource's Operations Manual, or otherwise (referred to as "Confidential Information" whether or not marked as such).
I acknowledge and agree that HealthSource is the sole owner of the Confidential Information and that I and my employees, representatives and agents: (x) will not use the Confidential Information for any purpose other than the operation of a HealthSource franchise; (y) will maintain the absolute confidentiality of the Confidential Information; and (z) will not
make unauthorized copies of any portion of the Confidential Information, and will return to HealthSource all tangible materials and media containing Confidential Information, including all copies thereof, upon HealthSource's request. I agree that the foregoing restrictions will apply even if I do not enter into a Franchise Agreement with HealthSource or if this Acknowledgement is revoked or expires or terminates, but nothing contained herein shall prevent me from using information or knowledge that is publicly available.
Source: Item 22 — Contracts (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Exhibit K is indeed a 'Franchise Deposit Acknowledgment and Amendment'. This document serves as an acknowledgment from the prospective franchisee to Healthsource Chiropractic regarding their deposit.
The acknowledgment includes several key points. First, it confirms that the applicant has received the HealthSource Franchise Disclosure Document (FDD) along with all attached exhibits at least 14 calendar days before signing the acknowledgment. It also confirms receipt of the completed acknowledgment form itself at least 7 business days prior to signing. These waiting periods are standard practice in franchising, designed to give franchisees adequate time to review the FDD and seek professional advice.
Furthermore, the document outlines the terms of the deposit, stating that the entire deposit will be applied towards the initial franchise fee if a Franchise Agreement is signed. It also clarifies that upon submission of the acknowledgment, the deposit is considered earned by Healthsource Chiropractic for application processing, reserving the protected territory, initial training, disclosure of confidential information, and other services performed after application approval. The acknowledgment also states that accepting the deposit does not grant any rights to operate a Healthsource Chiropractic clinic until a Franchise Agreement is executed.
Finally, the Franchise Deposit Acknowledgement addresses the non-disclosure of confidential information. It states that Healthsource Chiropractic may disclose confidential and proprietary information to the applicant after the deposit is submitted. This information includes details about services, sales performance, product sources, advertising programs, operational methods, and training techniques. The applicant agrees to maintain the confidentiality of this information and return all related materials, even if a Franchise Agreement is not ultimately signed.