Under a Healthsource Chiropractic Development Agreement, what document outlines the schedule for opening Clinics?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Multi-Unit Offering. We may offer qualified individuals and entities the right to open and operate multiple Clinics within a mutually-agreed upon geographical area (the "Site Selection Area") under our current form of area development agreement that is attached to this Disclosure Document as Exhibit C (the "Development Agreement"), which will also outline a schedule or defined period of time in which you must open and commence operating each Clinic (a "Development Schedule"). The minimum number of units offered for a Development Agreement is two. You will sign a Franchise Agreement for the initial Clinic you commit to develop within your Development Area at the same time you sign your Development Agreement, and you will eventually need to sign our then-current form of franchise agreement for each of the Clinics you open under the Development Schedule that may contain materially different terms than your initial form of agreement. If we award you multi-unit development rights under a Development Agreement, your Site Selection Area, Development Schedule and Development Fee will vary based on the number of franchises you commit and are awarded the right to develop.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Development Agreement outlines the schedule for opening multiple clinics. Healthsource Chiropractic may offer qualified individuals the right to open and operate multiple clinics within a mutually agreed-upon geographical area, referred to as the "Site Selection Area." This is done under the Development Agreement, which is attached to the Disclosure Document as Exhibit C. The Development Agreement includes a "Development Schedule," which specifies the period in which the franchisee must open and commence operating each clinic. The minimum number of units offered under a Development Agreement is two.
At the time of signing the Development Agreement, the franchisee will also sign a Franchise Agreement for the initial clinic they commit to develop within their Development Area. For each subsequent clinic opened under the Development Schedule, the franchisee will need to sign Healthsource Chiropractic's then-current form of franchise agreement. It is important to note that the terms of these later franchise agreements may differ materially from the initial agreement.
The Site Selection Area, Development Schedule, and Development Fee for a multi-unit development will vary based on the number of franchises the franchisee commits to develop and is awarded the right to develop. This means that prospective franchisees should carefully consider the number of units they are willing to commit to, as this decision will directly impact the geographical area they are responsible for, the timeline for opening clinics, and the associated fees.