Under what circumstances can Healthsource Chiropractic modify or alter a franchisee's Protected Territory?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee's protected territory can only be modified or altered if both Healthsource Chiropractic and the franchisee mutually agree to the change. The FDD states clearly that "Your Protected Territory may not be modified or altered under any circumstances unless you and we both agree to the change. Other than the foregoing, under no other circumstances may your Protected Territory be altered or modified by us." This stipulation provides a level of security for the franchisee, ensuring that Healthsource Chiropractic cannot unilaterally change the territory, which could impact the franchisee's business.

This requirement for mutual agreement is a significant protection for Healthsource Chiropractic franchisees. Without this clause, Healthsource Chiropractic could potentially reduce a franchisee's territory, impacting their ability to generate revenue. The agreement ensures that any changes are made with the franchisee's consent, likely after a negotiation process that considers the franchisee's interests. This fosters a more collaborative relationship between the franchisor and franchisee.

However, it is important to note that while the protected territory itself is generally secure, Healthsource Chiropractic retains certain rights that could impact a franchisee's business. Healthsource Chiropractic reserves the right to operate or franchise other Healthsource Chiropractic clinics outside of the franchisee's protected territory, offer other healthcare-related services under different trademarks, and use various channels of distribution, such as the internet, to make sales both inside and outside the protected territory. These reserved rights mean that while the franchisee has an exclusive territory for the Healthsource Chiropractic brand, they may still face competition from the franchisor's other activities.