Under the Healthsource Chiropractic franchise agreement, where is the franchisee given the right to operate their franchise?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that the Franchise granted by this Agreement gives you the right to operate your Franchise only at the Premises.
Provided you are in full compliance with this Agreement, neither we nor our affiliates will operate or grant a franchise for the operation of another Clinic franchise physically located within the territory described in Exhibit 1 (the "Protected Territory").
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees are granted the right to operate their franchise at a specific location, referred to as the Premises. This location is mutually agreed upon by both the franchisee and Healthsource Chiropractic after the franchise agreement is signed. The franchisee is obligated to operate the Healthsource Chiropractic clinic at this designated site, using the Healthsource Chiropractic system and trademarks.
The franchise agreement specifies that Healthsource Chiropractic will not operate or franchise another clinic within a Protected Territory, which is defined in Exhibit 1 of the agreement. This protection is contingent upon the franchisee's full compliance with the franchise agreement. This clause provides a degree of territorial exclusivity, ensuring that Healthsource Chiropractic will not directly compete with its own franchisees within a defined area.
It is important for prospective franchisees to carefully review Exhibit 1 to understand the exact boundaries of their Protected Territory. Additionally, franchisees should maintain full compliance with the franchise agreement to ensure they retain their territorial protections. The agreement emphasizes that the right to operate the franchise is tied to a specific location and adherence to Healthsource Chiropractic's standards.