Document:

Exhibit 10.14

 

FRANCHISE DISCLOSURE DOCUMENT

 

		 

         

        The Joint Corp.

        9383 East Bahia Drive, Suite 100

        Scottsdale, Arizona 85260

        Telephone (480) 245-5960

        www.thejoint.com

         

         

 

 

We offer two types
of franchises: 1) a single location franchise (referred hereto hereafter individually as a “Location” or collectively
as “Locations”); and 2) a regional developer franchise (referred to hereafter individually as a “Regional Developer”
or collectively as “Regional Developers”). Each Location will conduct business under the name of “The Joint...The
Chiropractic PlaceTM”, and will provide chiropractic services to the general public. Regional Developers will recruit
prospective Location franchises in a designated development area, and provide certain sales and support services to Location franchises
located within a defined development area (“Development Area”). We are offering the right to operate a Regional Developer
franchise under this Disclosure Document. Location franchises are offered under our separate disclosure document (“FDD for
Locations”).

 

The estimated total
initial investment necessary to begin operations of your Regional Developer franchise will range from $160,000 to $326,450. This
amount includes a Development Fee ranging from $150,000 to $300,000 that must be paid to the franchisor or an affiliate.

 

This disclosure document
(“Disclosure Document”) summarizes certain provisions of your franchise agreement and other information in plain English.
Read this Disclosure Document and all accompanying agreements carefully. You must receive this Disclosure Document at least fourteen
(14) calendar days before you sign a binding agreement with, or make any payment to, us or an affiliate in connection with the
proposed franchise sale. Note, however, that no government agency has verified the information contained in this document.

 

You may wish to receive
your Disclosure Document in another format that is more convenient for you. To discuss the availability of disclosures in different
formats, contact Chad Everts, The Joint Corp., 9383 E. Bahia Drive, Suite 100, Scottsdale, AZ 85260, (480) 245-5960.

 

The terms of your
contract will govern your franchise relationship. Don’t rely on the Disclosure Document alone to understand your contract.
Read your entire contract carefully. Show your contract and this Disclosure Document to an advisor, like a lawyer or accountant.

 

Buying a franchise
is a complex investment. The information in this Disclosure Document can help you make up your mind. More information on franchising,
such as “A Consumer’s Guide to Buying a Franchise,” which can help you understand how to use this disclosure
document is available from the Federal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by writing to the FTC at
600 Pennsylvania Avenue NW, Washington, DC 20580. You can also visit the FTC’s home page at www.ftc.gov for additional information
on franchising. Call your state agency or visit your public library for other sources of information on franchising. There may
be laws on franchising in your state. Ask your state agencies about them.

 

Issuance Date: May 1, 2013

 

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STATE COVER PAGE

 

Your state may have
a franchise law that requires a franchisor to register or file with a state franchise administrator before offering or selling
in your state. REGISTRATION OF A FRANCHISE BY A STATE DOES NOT MEAN THAT THE STATE RECOMMENDS THE FRANCHISE OR HAS VERIFIED THE
INFORMATION IN THIS DISCLOSURE DOCUMENT.

 

Call the state franchise
administrator listed in Exhibit A for information about the franchisor, or about franchising in your state.

 

MANY FRANCHISE AGREEMENTS
DO NOT ALLOW YOU TO RENEW UNCONDITIONALLY AFTER THE INITIAL TERM EXPIRES. YOU MAY HAVE TO SIGN A NEW AGREEMENT WITH DIFFERENT
TERMS AND CONDITIONS IN ORDER TO CONTINUE TO OPERATE YOUR BUSINESS. BEFORE YOU BUY, CONSIDER WHAT RIGHTS YOU HAVE TO RENEW YOUR
FRANCHISE, IF ANY, AND WHAT TERMS YOU MIGHT HAVE TO ACCEPT IN ORDER TO RENEW.

 

Please consider the
following RISK FACTORS before you buy this franchise:

 

1.          THE
FRANCHISE AGREEMENT REQUIRES YOU TO RESOLVE DISPUTES WITH US BY ARBITRATION ONLY IN ARIZONA. OUT-OF-STATE ARBITRATION MAY FORCE
YOU TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. IT MAY ALSO COST YOU MORE TO ARBITRATE WITH US IN ARIZONA THAN IN YOUR
OWN STATE.

 

2.          THE
FRANCHISE AGREEMENT STATES THAT ARIZONA LAW GOVERNS THE AGREEMENT, AND THIS LAW MAY NOT PROVIDE THE SAME PROTECTION AND BENEFITS
AS LOCAL LAW. YOU MANY WANT TO COMPARE THESE LAWS.

 

3.          THERE
MAY BE OTHER RISKS CONCERNING THIS FRANCHISE.

 

We use the services
of one or more franchise brokers or referral sources to assist us in selling our franchise. A franchise broker or referral source
is our agent and represents us, not you. We pay this person a fee for selling our franchise or referring you to us. You
should be sure to do your own investigation of the franchise.

 

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Effective Date: May 1, 2012, except
for the States listed below.

 

The effective dates of registration of
this Disclosure Document in these states are:

 

	State	 	Effective Date
	 	 	 
	California	 	Not Registered
	 	 	 
	Hawaii	 	Not Registered
	 	 	 
	Illinois	 	Not Registered 
	 	 	 
	Indiana	 	Not Registered
	 	 	 
	Maryland	 	Not Registered
	 	 	 
	Michigan	 	April 18, 2013
	 	 	 
	Minnesota	 	Not Registered
	 	 	 
	New York	 	Not Registered 
	 	 	 
	North Dakota	 	Not Registered
	 	 	 
	Rhode Island	 	Not Registered
	 	 	 
	South Dakota	 	Not Registered
	 	 	 
	Virginia	 	Not Registered
	 	 	 
	Washington	 	Not Registered
	 	 	 
	Wisconsin	 	Not Registered

  

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MICHIGAN SPECIFIC-NOTICE

 

The state of Michigan
prohibits certain unfair provisions that are sometimes in franchise documents. If any of the following provisions are in these
franchise documents, the provisions are void and cannot be enforced against you. 

 

(a)          A
prohibition of the right of a franchisee to join an association of franchisees.

 

(b)          A
requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights
and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling
any and all claims.

 

(c)          A
provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause
shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure
after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure each
failure.

 

(d)          A
provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or
other means for the fair market value at the time of expiration of the franchisee’s inventory, supplies, equipment, fixtures,
and furnishings. Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures, and
furnishings not reasonably required in the conduct of the franchised business are not subject to compensation. This subsection
applies only if (i) the term of the franchise is less than 5 years and (ii) the franchisee is prohibited by the franchise or other
agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype,
advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does
not receive at least 6 months’ notice of franchisor’s intent not to renew the franchise.

 

(e)          A
provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the
same class or type under similar circumstances. This section does not require a renewal provision.

 

(f)          A
provision requiring that arbitration or litigation be conducted outside this state. This shall not preclude the franchisee from
entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.

 

(g)          A
provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause. This subdivision
does not prevent a franchisor from exercising a right of first refusal to purchase the franchise. Good cause shall include, but
is not limited to:

 

(i)          The
failure of the proposed transferee to meet the franchisor’s then current reasonable qualification or standards.

 

(ii)         The
fact that the proposed transferee is a competitor of the franchisor or sub-franchisor.

 

(iii)        The
unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.

 

(iv)        The
failure of the franchisee or proposed transferee to pay any sums owing to the franchisor or to cure any default in the franchise
agreement existing at the time of the proposed transfer.

 

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(v)         A
provision that requires the franchisee to resell to the franchisor items that are not uniquely identified with the franchisor.
This subdivision does not prohibit a provision that grants to a franchisor a right of first refusal to purchase the assets of
a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this
subdivision prohibit a provision that grants the franchisor the right to acquire the assets of a franchise for the market or appraised
value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the
breach in the manner provided in subdivision

 

(h)          A
provision which permits the franchisor to directly or indirectly convey, assign, or otherwise transfer its obligations to fulfill
contractual obligations to the franchisee unless provision has been made for providing the required contractual services.

 

The fact that there
is a notice of this offering on file with the attorney general does not constitute approval, recommendation, or endorsement by
the attorney general.

 

Any questions regarding this notice should
be directed to the Attorney General’s Department for the State of Michigan, Consumer Protection Division, Franchise Section,
670 Law Building, 525 W. Ottawa Street, Lansing, Michigan 48913, (517) 373-7117.

 

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TABLE OF CONTENTS 

 

	ITEM	 	PAGE
	 	 	 
	1.	THE FRANCHISOR AND ANY PARENTS, PREDECESSORS
    AND AFFILIATES	1
	2.	BUSINESS EXPERIENCE	3
	3.	LITIGATION	5
	4.	BANKRUPTCY	6
	5.	INITIAL FEES	7
	6.	OTHER FEES	8
	7.	ESTIMATED INITIAL INVESTMENT	11
	8.	RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES	14
	9.	FRANCHISEE'S OBLIGATIONS	16
	10.	FINANCING	18
	11.	FRANCHISOR’S ASSISTANCE, ADVERTISING,
    COMPUTER SYSTEMS,  AND TRAINING	19
	12.	TERRITORY	25
	13.	TRADEMARKS	26
	14.	PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION	27
	15.	OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION
    OF THE FRANCHISED BUSINESS	28
	16.	RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL	29
	17.	RENEWAL, TERMINATION, TRANSFER AND DISPUTE
    RESOLUTION	30
	18.	PUBLIC FIGURES	34
	19.	FINANCIAL PERFORMANCE REPRESENTATIONS	35
	20.	OUTLETS AND FRANCHISEE INFORMATION	36
	21.	FINANCIAL STATEMENTS	40
	22.	CONTRACTS	41
	23.	RECEIPTS	42

 

EXHIBITS

 

		A.	State Administrators/Agents
                                         for Service of Process

		B.	Regional Developer
                                         Agreement

		C.	Table of Contents
                                         of Manuals

		D.	Financial Statements

		E.	Confidentiality/Non-Disclosure
                                         Agreement

		F.	List of Franchisees

		G.	General Release
                                         Agreement

		H.	Transfer Agreement

		I.	State-Specific
                                         Disclosures

		J.	Receipts

 

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ITEM 1

 

THE FRANCHISOR AND ANY PARENTS, PREDECESSORS
AND AFFILIATES

 

The Joint Corp., a
Delaware corporation, is offering prospective franchise owners the opportunity to operate a Regional Developer franchise in accordance
with the terms described in this Disclosure Document. To simplify the language in this Disclosure Document, the terms, “We,”
“Us,” “the Company,” or “The Joint” mean The Joint Corp., the franchisor (but not the Company’s
officers, directors, agents or employees). “You” or “Franchise Owner” mean the person who buys a franchise
from us. The term “Regional Developer” or “Regional Developers” mean one or several The Joint Regional
Developer franchises. The term “Location” or “Locations” mean one or several The Joint single location
franchises. If you are a corporation, partnership or other entity, our Regional Developer Agreement will also apply to your owners,
officers and directors. Unless otherwise indicated, the term “Franchised Business” means a The Joint franchise.

 

The Franchisor, and any Parents,
Predecessor and Affiliates 

 

We are a Delaware
corporation, created on March 10, 2010. Our predecessor for the purpose of this Disclosure Document was The Joint Franchise Co.,
LLC, an Arizona limited liability company organized on February 21, 2003. However, The Joint Corp. did not take over, or merge
with, The Joint Franchise Co., LLC but merely bought the assets from The Joint Franchise Co., LLC, including the existing franchise
agreements between The Joint Franchise Co., LLC and its franchisees. We have one affiliate, The Joint Corporate Unit No. 1, LLC,
which is a unit franchise that is wholly-owned and operated by us. We do not have any other parents or affiliates.

 

Our principal business
and mailing address is 9383 East Bahia Drive, Suite 100, Scottsdale, Arizona 85260. Our telephone number is (480) 245-5960 and
our facsimile number is (480) 513-7989. We do not maintain a sales office at any location other than our principal places of business.
We operate under our corporate name, The Joint Corp. We do not do business or intend to do business under any other names. Our
agent for service of process is disclosed in Exhibit A to this Disclosure Document.

 

The principal business
and mailing address of our predecessor, The Joint Franchise Co., LLC, was 4300 Paces Ferry Road, #125, Atlanta, Georgia, 30339. 

 

Our Business

 

We grant franchises
for the right to operate under the name “The Joint... The Chiropractic PlaceTM” and other Marks designated
by the Company from time to time. We refer to our proprietary and confidential system for the operation of The Joint Locations
and Regional Developer franchises, together with the Marks, as “the System.” You must offer all products and services
that we may specify and may not offer any products or services we have not authorized. The Company is not engaged in any other
business.

 

We currently offer
and sell two types of franchises: 1) single location franchises for The Joint (“Location(s)”); and 2) regional developer
franchises (“Regional Developer(s)”). Our predecessor began offering Location franchises in March 2003. We began offering
Regional Developer franchises in February 2011. This Disclosure Document is for the Regional Developer franchise concept only,
and does not contain information about the costs of opening or operating a Location franchise. Location franchises are offered
under a separate Disclosure Document (“FDD for Locations”). Currently, we do not operate any company or affiliate
-owned Location or Regional Developer franchises.

 

Location franchises
specialize in providing chiropractic services and products to the general public. Regional Developer franchises recruit prospective
Location franchises in a designated development area, and provide certain sales and support services to Location franchises located
within a defined development area (“Development Area”).

 

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You must operate your
Franchised Business at a site we approve and in accordance with the standards and procedures designated by the Company, and according
to the Company’s Operation Manual for Regional Developers, or other notices we send you from time to time (“the Manual
for RDs”). (See Item 11).

 

Except where legally
permissible, we will grant Location franchises only to licensed chiropractors, or to entities owned solely by licensed chiropractors.
At least one licensed chiropractor must be present in the Location at all times, during the hours of business of the Location.
A similar restriction does not apply to owners of Regional Developer franchises.

 

Market and Competition

 

The market for Locations
franchises includes individuals who need chiropractic care. The competition for Location franchises includes other businesses
offering similar products and services to individuals. These competitors may include other chiropractic clinics, physical therapy
specialists, hospitals and other medical facilities and franchises.

 

Regional Developer
franchises compete with other franchisors, regional developers, sales brokers and others offering franchises or other business
opportunities. Prior business management experience is generally very important for new Regional Developers, and prior business
ownership experience is highly desirable.

 

Laws and Regulations

 

Many states and local
jurisdictions have enacted laws, rules, regulations and ordinances that may apply to the operation of Location franchises. For
example, state licensing and certification requirements may apply to persons who perform services for or at a Location. Additionally,
all records of the Franchised Business’ patients are required to meet HIPAA compliance standards. In all cases, you must
also comply with laws that apply generally to all businesses. You should investigate these laws, and consult with a legal advisor
about whether these and/or other requirements apply to your franchise. There may be other laws and regulations in your state or
county that may apply to your operation of the Franchised Business.

 

In addition to laws
and regulations that apply to businesses generally, the Franchised Business may be subject to federal, state and local occupational
safety and health regulations, state medical board regulations, Equal Employment Opportunity and Americans with Disabilities Act
rules and regulations. Some jurisdictions may choose to regulate vigorously these and other laws that may adversely affect your
ability to obtain the proper permits needed in order to open a Location franchise. Prior to signing a Regional Developer Agreement,
we strongly recommend that you make sure that you will be able to obtain all necessary permits and licenses in order to operate
the Franchised Business at your site.

 

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ITEM 2

 

BUSINESS EXPERIENCE

 

John Leonesio – Director and
Chief Executive Officer

 

Mr. Leonesio has served
as CEO for The Joint since March 2010. Mr. Leonesio has also been the CEO of United Club Services (“UCS”) located
in Scottsdale, AZ since September 1999. He also has been the CEO for Firestorm 24/7 in Scottsdale, AZ since November 2008. Mr.
Leonesio is the founder of Massage Envy where he served as the CEO from 2002 through 2008.

 

Ron Record - Chief
Financial Officer and Chief Operating Officer

 

Mr. Record has served
as Chief Operating Officer for The Joint since November 2012. Mr. Record served as our Chief Financial Officer from April 2010
until December 2012. Mr. Record is also the General Manager for United Club Services (“UCS”) located in Scottsdale,
AZ. He became the GM for UCS in April 2009. Prior to working for UCS, Mr. Record was the Director for The Lofton Companies located
in Phoenix AZ from 2008 to 2009. From 2004 to 2008, Mr. Record was the CFO for Masterson & Clark located in Scottsdale AZ.

 

Joe Marshall – Chief Financial
Officer

 

Mr. Marshall has served
as Chief Financial Officer of The Joint since January 2013. Prior to becoming the CFO for The Joint, Mr. Marshall served as the
CFO/VP Finance for Zep Solar from 2009 – 2012 in San Rafael, CA. From 2007 to 2009, Mr. Marshall served as a Principal for
TBL Capital, a venture capital company located in Sausalito, CA.

 

Craig Colmar – Secretary and
Director

 

Mr. Colmar has served
as Secretary and a member of the Board of Directors for The Joint Corp. since March 2010. Mr. Colmar is currently a senior partner
the Law Firm of Johnson and Colmar located in Bannockburn, IL, where he has been for over 30 years.

 

Steve Colmar – Director

 

Mr. Colmar has served
as a member of the Board of Directors of The Joint Corp. since April 2010. Mr. Colmar has the President of Business Ventures Corp
based in Austin, Texas since December 2006.

 

Richard Rees – Director

 

Mr. Rees has served
as a member on the Board of Directors of The Joint Corp. since March 2010. Mr. Rees has been the Chief Operating Officer for Business
Ventures Corp based in Austin, Texas since December 2006.

 

Matt Hale – Vice President
of Operations and Construction

 

Mr. Hale has been
the Vice President of Operations and Construction for The Joint Corp. since April 2010. From July 2008 to March 2010, Mr. Hale
was the Vice President of Operations for Noodle Development, the franchisor of Nothing But Noodles, in Scottsdale, Arizona. From
January 2003 to June 2008, Mr. Hale owned and operated a nationwide franchise called Nothing but Noodles in Chandler, Arizona

 

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Chad Everts – Vice President
of Sales and Real Estate

 

Mr. Everts became
the Vice President of Sales and Real Estate for The Joint Corp. in April 2010. Mr. Everts co-founded Noodles Management in 2001,
the franchisor of the restaurant concept "Nothing but Noodles", which has locations in 9 states. Mr. Everts served as
the Co-Chief Executive Officer for Noodles Management located in Scottsdale, Arizona from 2001 until March 2010.

 

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ITEM 3

 

LITIGATION

 

No litigation is required to be disclosed in this
Item.

 

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ITEM 4

 

BANKRUPTCY

 

No bankruptcy information is required to
be disclosed in this Item.

 

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ITEM 5

 

INITIAL FEES

 

You must pay us an
initial Regional Developer development fee (“the Development Fee”) ranging from $150,000 to $300,000, depending on
the population of your defined Development Area. The formula used to determine the Development Fee for your Development Area is
calculated by multiplying 25% of the then-current franchise fee for a Location franchise, times the number potential Location
franchises within the proposed geographically defined Development Area. Our formula assumes a Location territory with a minimum
population of approximately 100,000, and is an approximation, rather than an exact formula.

 

The initial Regional
Developer development fee must be paid by wire transfer, cash or certified funds when you sign the Regional Developer Agreement.
The initial Regional Developer franchise fee is uniform for all Regional Developer franchises we offer through this Disclosure
Document. However, we reserve the right to modify the initial Regional Developer franchise fee in the future to reflect the changing
costs of doing business and changes in the value of a Regional Developer franchise. We may also discount the initial Regional
Developer development fee: (i) if a Regional Developer purchases multiple development areas, depending on the number of development
areas purchased and their locations; (ii) if we are unable to locate a Regional Developer in a particular region we consider desirable;
or (iii) based on other subjective factors we deem important to the System.

 

We incur significant
administrative and other expenses in appointing you as a Regional Developer, including training costs, attorneys’ fees for
preparing your Regional Developer Agreement, and expenses related to our lost or deferred opportunities to enfranchise others.
As a result, the initial Regional Developer fee is fully earned by us upon receipt and is nonrefundable.

 

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ITEM 6

 

OTHER FEES*

 

	Fee (1)	 	Amount	 	Due Date	 	Remarks
	Regional Developer Advertising Cooperatives	 	Varies without limitation; based on a majority vote of the Cooperative	 	As required by the cooperative	 	Currently, no Advertising Cooperatives have been established (see Item 11).
	 	 	 	 	 	 	 
	Interest	 	Lesser of 15% per annum, or the highest commercial contract interest rate permitted by law	 	From the date payments are due, and continues until outstanding balance and accrued interest are paid in full	 	Charged on any late payments of any amounts due us or our affiliates.
	 	 	 	 	 	 	 
	Computer System Fee (2)	 	$275.00	 	Monthly	 	Payable to cover the monthly cost of accessing our proprietary computer software and programs necessary to operate your
    franchise (See Item 11)
	 	 	 	 	 	 	 
	Audit Expenses	 	Cost of audit and inspection, plus any reasonable accounting and legal expenses	 	On demand	 	Payable if 2% or more discrepancy in amounts owed, or if you fail to submit required reports.
	 	 	 	 	 	 	 
	Late Reporting Fee	 	$100	 	10th day of the month following any month for which any required report is not timely submitted.	 	Payable if any report or other information required to be submitted to us is received by us after the established deadline.
	 	 	 	 	 	 	 
	Manual Replacement Fee	 	Currently $250 per Manual	 	On demand	 	Payable if your Manual for Locations or Manual for RDs is lost, destroyed, or significantly damaged. You must obtain a
    replacement copy at our then applicable charge.
	 	 	 	 	 	 	 
	Additional Training Fee	 	An amount set by us per attendee, per day, plus expenses	 	On demand	 	Payable for each person who attends any mandatory or optional additional training program or owners meeting held by us
    (see Item 11). We do not currently charge this fee.  

 

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	Fee (1)	 	Amount	 	Due Date	 	Remarks
	Management Fee	 	Up to 10% of Gross Revenues (3), plus costs and expenses, up to $300,000 for a 6-month time period	 	As incurred	 	Payable if we manage the franchise after you materially breach the Regional Developer Agreement, or we choose to purchase
    the franchise upon the expiration or termination of the Regional Developer Agreement.
	 	 	 	 	 	 	 
	Renewal Fee	 	25% of the original initial Regional Developer franchise fee for your Development Area	 	Upon renewal	 	Payable upon renewal of your Regional Developer Agreement.
	 	 	 	 	 	 	 
	Transfer Fee	 	$30,000 for the Development Area	 	At the time of transfer	 	Applies to any transfer of the Regional Developer Agreement, the franchise, or its assets, except transfers to a legal
    entity principally controlled by you.
	 	 	 	 	 	 	 
	Termination Fee (3)	 	One-half of our highest then-current development fee, plus our attorneys’ fees and costs.	 	On demand	 	Payable if you terminate, or we terminate your franchise for cause, before your franchise term expires (2)
	 	 	 	 	 	 	 
	Insurance (4)	 	Amount of unpaid premiums and related costs	 	On demand	 	Payable only if you fail to maintain required insurance coverage and we pay premiums for you.
	 	 	 	 	 	 	 
	Legal Costs and Attorney's Fees	 	All legal costs and attorneys’ fees incurred by us	 	On demand	 	Payable if we must enforce, defend our actions related to, or against your breach of, the Regional Developer Agreement.
	 	 	 	 	 	 	 
	Indemnification	 	All amounts (including attorneys’ fees and costs) incurred by us or otherwise required to be paid	 	On demand	 	Payable to indemnify us, our affiliates, and our and their respective owners, officers, directors, employees, agents,
    successors, and assigns against all claims, liabilities, costs, and expenses related to your ownership and operation of the
    franchise, your breach of the Regional Developer Agreement, or your non-compliance with any law or regulation.  

 

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Explanatory Notes:

 

Except for some product
and service purchases (see Item 8) and advertising cooperative payments (see Item 11), all fees are uniform, and are
imposed by, collected by, and payable to us. All fees are non-refundable.

 

		1.	You must pay all amounts due by automatic debit. You
will be required to execute an ACH Authorization Form permitting us to electronically debit your designated bank account for payment
of all fees payable to us as well as any amounts that you owe to use or our affiliates for the purchase of goods or services.
You must ensure that there are sufficient funds available in your account for withdrawal before each due date.

 

		2.	The monthly access fee for to our computer system is
currently $275/month. This fee allows the franchisee to access our intranet site, including, training programs and our propriety
software. See Item 7 and 11 for additional information regarding Computer Systems.

 

		3.	You must pay the termination fee, plus any costs and
attorneys’ fees incurred by us, if you improperly attempt to terminate or close your franchise before your term expires,
or we terminate your Regional Developer Agreement for any reason set forth in the Regional Developer Agreement. We may also recover
from you any damages suffered by us (e.g., lost future revenues) resulting from your improper or wrongful termination of the franchise.
Termination fees may be unenforceable in certain states. See Item 17 for additional information.

 

		4.	If you fail to pay the premiums for insurance required
to operate your franchise, we may obtain insurance for you and you will be required to reimburse us within ten (10) days of receipt
of a demand for reimbursement from us. We will have the right to debit your account the amounts owed to us for such premiums if
you fail to pay us within ten (10) days of our request for reimbursement.

 

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ITEM 7

 

ESTIMATED INITIAL INVESTMENT

YOUR
ESTIMATED INITIAL INVESTMENT*

	 	 	Amount	 	 	Method of	 	 	 	To Whom

    Payment is
	Type
    of Expenditure	 	Low	 	 	High	 	 	Payment	 	When
    Due	 	Made
	Initial Regional Developer Development Fee (1)	 	$	150,000	 	 	$	300,000	 	 	Lump sum	 	Upon signing the RD Agreement	 	Us
	Real property - rental (3 months) (2)	 	$	0	 	 	$	3,000	 	 	Monthly	 	As arranged	 	Landlord
	Lease security deposit (2)	 	$	0	 	 	$	1,000	 	 	Lump sum	 	As arranged	 	Landlord
	Construction Costs, Equipment and Fixtures (2)	 	$	0	 	 	$	5,000	 	 	As arranged	 	As arranged	 	Suppliers and
 contractors
	Insurance (3)	 	$	500	 	 	$	1,000	 	 	As arranged	 	As incurred	 	Insurance
 company
	Utility deposits (4)	 	$	0	 	 	$	500	 	 	As arranged	 	As incurred	 	Utility
 companies
	Vehicle (5) (3 months)	 	$	0	 	 	$	1,200	 	 	As arranged	 	As incurred	 	Supplier
	Professional service fees (6)	 	$	500	 	 	$	2,000	 	 	As arranged	 	As incurred	 	Professionals
	Travel and living expenses during initial training (per person)
    (7)	 	$	1,000	 	 	$	1,500	 	 	As arranged	 	As incurred	 	Third parties
	Filing fees (8)	 	$	0	 	 	$	750	 	 	As arranged	 	As incurred	 	State authority
	Franchise sales advertising (3 months) (9)	 	$	1,500	 	 	$	3,000	 	 	As incurred	 	As incurred	 	Print
 advertisers
	Computer system (10)	 	$	1,500	 	 	$	2,500	 	 	As arranged	 	As incurred	 	Suppliers
	Additional funds (3 months) (11)	 	$	5,000	 	 	$	5,000	 	 	As incurred	 	As incurred	 	Third Parties
	TOTAL ESTIMATED INITIAL
    INVESTMENT (12)	 	$	160,000	 	 	$	326,450	 	 	 	 	 	 	 

  

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Explanatory Notes:

 

* These estimated
initial expenses are our best estimate of the costs you may incur in establishing and operating your Regional Developer franchise.
Our estimates are based on our experience and the current requirements for Regional Developers. The actual investment you make
in developing and opening your franchise may be greater or less than the estimates given depending upon the location of your franchise,
and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures;
your management skills; your business experience and capabilities; local economic conditions; the local market for our products
and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations.

 

		1.	We discuss the initial
                                         Regional Developer development fee in detail in Item 5 of this Disclosure Document. We
                                         and our affiliates do not offer any financing for this fee, and, except as mentioned
                                         in Item 5, is not refundable.

 

		2.	You may operate
                                         your Franchised Business from any location you choose. If you decide to operate your
                                         sales office from a leased premise, you will be required to pay rent and possibly, the
                                         cost of constructing, equipping and furnishing the sales office. Since the size and nature
                                         of each Regional Developer’s sales office space will vary, an estimate is difficult.
                                         The estimate shown is for an office consisting of a reception area, one secretarial station,
                                         one conference room and two offices. The amount of your rent will vary according to the
                                         area, the type of office location (office building, strip center, or free-standing building),
                                         and various other factors. If you decide to operate out of a lease premises, you may
                                         also be required to pay a security deposit. In addition, in certain lease transactions,
                                         if you are an entity, the landlord may require your owners to personally guarantee the
                                         lease. Whether this fee is refundable depends on your agreement with your landlord.

 

		3.	You must obtain
                                         and maintain, at your own expense, insurance coverage for the vehicle(s) and any buildings
                                         you use or operate in connection with your franchise. Insurance costs depend on a variety
                                         of factors. Annual premiums are typically paid to the insurer immediately, with refunds
                                         being issued if you cancel the insurance. The cost of your premiums will depend on the
                                         insurance carrier's charges, terms of payment, and your insurance and payment history.
                                         Our insurance requirements are contained in our Manual for RDs.

 

		4.	If you decide to
                                         operate from a leased premise, you may be required to pay deposits for utilities. The
                                         amount of these deposits will vary depending on the practices of the utility companies
                                         and whether any impact or hook-up fees are required.

 

		5.	You may be required
                                         to purchase or lease a vehicle to conduct franchise sales activities. If you decide not
                                         to utilize your own vehicle we estimate it will cost you approximately $400 per month
                                         to cover the cost of your vehicle, tax, title, and licensing.

 

		6.	You may wish to
                                         retain the services of an attorney and other consultants to assist you in forming your
                                         business entity and in purchasing and establishing your Franchised Business. The cost
                                         of these services will vary depending on the different services providers.

 

		7.	You will incur expenses
                                         related to our initial Regional Developer training program. We provide a training program,
                                         a training location, instructors, and instructional materials. You will need to arrange
                                         for transportation, food, and lodging for your designated attendees. The costs you incur
                                         will depend on the distance you must travel and the type of accommodations you choose.
                                         See Item 11 of this Disclosure Document.

 

		8.	If the laws within
                                         your Development Area require you to be registered prior to undertaking your franchise
                                         development activities as required by the Regional Developer Agreement, there will be
                                         certain costs associated with this registration, including registrations fees. Registration
                                         fees vary from state to state.

 

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		9.	We estimate that
                                         you will spend between $500 and $1000 each month to advertise the sale of Location franchises
                                         in your Development Area. The precise amount will be determined by the population of
                                         your Development Area after consultation with, and consent by, us. Advertising expenditures
                                         must be documented to us upon our request. This includes the cost of sales and marketing
                                         materials.

 

		10.	You must purchase
                                         a personal computer system and printer for your Franchised Business that is compatible
                                         with our computer equipment, so that you will be able to use our proprietary software,
                                         receive e-mail, use Internet and Intranet services, and receive other electronic information
                                         we send. We estimate the initial cost to purchase the computer system to be between $1,500
                                         and $2,500. You will be required to pay a fee of $275/month for the continuing use and
                                         upgrade of our proprietary office management software. You will need to have an internet
                                         connection as part of your system. We estimate the cost of Internet service to be less
                                         than $20 and $30 per month, although DSL (high-speed) Internet access may cost between
                                         $50 and $75 per month. See Items 8 and 11 of this Disclosure Document.

 

		11.	You will need capital
                                         to support your on-going expenses like payroll, utilities and franchise sales advertising,
                                         to the extent that these costs are not covered by sales revenue. New businesses often
                                         generate a negative cash flow. We estimate that the amount shown will be sufficient to
                                         cover ongoing expenses for the start-up phase of the Franchised Business, which is three
                                         months. This is only an estimate, however, and there is no assurance that additional
                                         working capital will not be necessary during or after this start-up phase. Our entry
                                         into the Regional Developer Agreement with you does not mean that you will be successful.
                                         We make no representations or warranties of success. The success of your Franchised Business
                                         is speculative and will depend, more than any other factor, on your ability as an independent
                                         business owner. Other factors may also positively or negatively affect your Franchised
                                         Business.

 

		12.	We encourage you
                                         to make a diligent investigation of the Regional Developer franchise opportunity. You
                                         should contact the Regional Developers listed on Exhibit F, and consult appropriate business
                                         advisors, like attorneys or accounts who are qualified to assist you in carefully evaluating
                                         these figures, before you make any decision to purchase a Regional Developer franchise
                                         from us.

 

		13.	Except as expressly
                                         mentioned above, none of the fees above are refundable.

 

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ITEM 8

 

RESTRICTIONS ON SOURCES OF PRODUCTS
AND SERVICES

 

Approved Suppliers 

 

You must purchase
specified products and services relating to or for the operation of your Franchised Business solely from suppliers (including
distributors, manufacturers, and other sources) who have been approved in writing by the Company. You are not allowed to purchase
any of these products or services from an unapproved or alternate supplier. When selecting suppliers, we consider all relevant
factors, including the quality of goods and services, service history, years in business, capacity of supplier, financial condition,
terms and other requirements consistent with other supplier relationships. However, the Company does not have any specific written
criteria for supplier selection and does not intend at this time to prepare one. Therefore, the Company will not furnish its criteria
for supplier approval to you. We maintain written lists of required products (by brand name and/or by standards and specifications)
and lists of approved suppliers for those items. All such products and approved vendors for our required products and services
will be listed in the Manual for RDs, which must always be followed, even as modified and updated by the Company. Currently, we
do not require our RDs to purchase any products, supplies or equipment from us.

 

Specifications and Standards

 

You must purchase
certain products, supplies and equipment under specifications and standards that we periodically establish either in the Regional
Developer Agreement, Manual for RDs, or other notices we send to you from time to time. These specifications are established to
provide standards for performance, durability, design and appearance. We will notify you whenever we establish or revise any of
our standards or specifications, or if we designate approved suppliers for products, equipment or services.

 

Our Involvement with Suppliers

 

While we and our affiliates
currently have received no revenue or other consideration from suppliers in consideration for other goods or services that we
require or advise you to obtain from approved suppliers, we reserve the right to do so in the future. We anticipate that any revenue
or other consideration received would probably include promotional allowances, volume discounts, and other payments, and would
probably be equal to zero to ten percent (0-10%) of the amount of the goods or services you purchase from the supplier. We expect
that at least some of these arrangements will generally allow us to obtain discounts off standard pricing, and pass at least a
portion of the savings on to you. We negotiate price terms and other purchase arrangements with suppliers for you for some items
that we require you to lease or purchase in developing and operating your Regional Developer franchise. There currently are no
purchasing and distribution cooperatives.

 

Effects of Compliance and Noncompliance

 

You must comply with
our requirements to purchase or lease real estate, goods, and services according to our specifications and/or from approved suppliers
to be eligible to renew your franchise. Failure to comply with these requirements will render you ineligible for renewal, and
may be a default allowing us to terminate your franchise. We do not provide any other benefits to you because of your use of designated
or approved services and products, or suppliers.

 

We may choose to negotiate
purchase agreements for certain equipment or supplies. You may purchase such equipment or supplies from such designated suppliers
or from any approved supplier on such terms as you negotiate. The Manual for RDs contains details relating to such purchases.

 

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Insurance Specifications 

 

Before you open your
Location, you must obtain certain minimum insurance coverage, naming the Company as an additional insured. We may increase these
limits or have new types of coverage added at any time after giving you notice. You must maintain this insurance coverage, as
required by your Regional Developer Agreement, from a responsible carrier. Our current insurance requirements are summarized in
the Manual for RDs. You must obtain your insurance necessary to operate your franchise from our required vendor. Currently, Brown
& Brown Insurance is our required vendor for all insurance necessary to meet our specifications. We will not receive rebates
or other consideration from Brown & Brown in connection the services provided to our franchisees.

 

Advertising Specifications 

 

You must obtain our
approval before you use any advertising and promotional materials, signs, forms and stationary unless we have prepared or approved
them during the twelve (12) months prior to their proposed use. You must purchase certain advertising and promotional materials,
brochures, fliers, forms, business cards and letterhead from approved vendors only. Further, you must not engage in any advertising
of your Franchised Business unless we have previously approved the medium, content and method.

 

Records 

 

All of your bookkeeping
and accounting records, financial statements, and all reports you submit to us must conform to the requirements set forth in Sections
6.11 and 6.12 of the RDA, as well as those contained in our Manual for RDs.

 

Computer-Related Equipment and Software

 

You must purchase
a computer system and operating software that we specify from time to time. See Item 7 regarding the estimated initial cost of
this equipment. You will also be required to pay a monthly fee of $275 for the continuing use and upgrade of our proprietary office
management software. You will also be required to have access to a broadband Internet connection at all time.

 

We may require additional
items to be purchased by the Franchise Owner from certain manufacturers or suppliers in the future. We will notify you of such
requirements by sending to you such changes by modifying the Manual for RDs, or sending to you other written forms of communication.

 

Disclosure Document for Location Franchises

 

You must
deliver a copy of our FDD for Locations to each potential Location franchisee. We will provide you with one copy of the FDD for
Locations, although it is copyrighted, and you will not be licensed to reproduce it yourself without our prior written authorization.
You must purchase additional copies of our FDD for Locations from our designated or approved supplier(s). Currently, only we are
the designated or approved supplier of printed copies of our FDD for Locations. We will periodically provide you with a list of
the designated or approved supplier(s) of our FDD for Locations. There is no alternate supplier due to the need to maintain strict
control of the contents of our FDD for Locations.

 

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ITEM 9

 

FRANCHISEE'S OBLIGATIONS

 

This table lists
your principal obligations under the Regional Developer Agreement and other agreements. It will help you find more detailed information
about your obligations in these agreements and in other items of this Disclosure Document. 

 

	Obligations	 	Section in

        Regional Developer

        Agreement
	 	Disclosure Document Item
	 	 	 	 	 
	(a) Site selection and acquisition/lease   	 	Sections 2.2 of RDA	 	Item 11
	 	 	 	 	 
	(b) Pre-opening purchases/leases	 	Sections 6.5 and 7 of RDA	 	Items 5, 7 and 8
	 	 	 	 	 
	(c) Site development and other pre-opening requirements	 	No provision of RDA	 	Items 7, 8, and 11
	 	 	 	 	 
	(d) Initial and ongoing training  	 	Sections 5.1 of RDA	 	Item 11
	 	 	 	 	 
	(e) Opening	 	Section 2.2 of RDA	 	Item 11
	 	 	 	 	 
	(f) Fees  	 	Sections 4, 5.2, 5.4, 6.5, 6.11, 7, 11.3(i), 15.2 and 15.15 of RDA	 	Items 5, 6  and 7
	 	 	 	 	 
	(g) Compliance with standards and policies	 	Sections 5.2 and 6 of RDA	 	Items 11 and 16
	 	 	 	 	 
	(h) Trademarks and proprietary information	 	Sections 9 and 10 of RDA; and Confidentiality Agreement (Exhibit E)	 	Items 13 and 14
	 	 	 	 	 
	(i) Restrictions on products/services offered   	 	Section 5.2(a) of RDA	 	Item 16
	 	 	 	 	 
	(j) Warranty and Customer Service Requirements	 	Section 6.1of RDA	 	None
	 	 	 	 	 
	(k) Territorial Development  And Sales Quotas	 	Section 2.1 of RDA	 	Item 12
	 	 	 	 	 
	(l) On-going   product/services purchases  	 	Sections 5.4, 5.8, and 6.5 of RDA	 	Item 8
	 	 	 	 	 
	(m) Maintenance, appearance and  remodeling requirements	 	Section 5.8 of RDA	 	None
	 	 	 	 	 
	(n) Insurance	 	Sections 6.5 and 6.6 of RDA	 	Item 7
	 	 	 	 	 
	(o) Advertising  	 	Sections 5.8, 6.7, 6.8, and 6.9 of RDA	 	Items 6, 7, and 11
	 	 	 	 	 
	(p) Indemnification	 	Section 15.2 of RDA	 	Items 6, 13 and 17
	 	 	 	 	 
	(q) Owners Participation management/staffing	 	No provision of RDA	 	Items 11, 15 and 16
	 	 	 	 	 
	(r) Records/reports	 	Sections 6.11 and 6.12 of RDA  	 	Item 6
	 	 	 	 	 
	(s) Inspections/audits	 	Section 5.7 of RDA	 	Item 6
	 	 	 	 	 
	(t) Transfer  	 	Section 11 of RDA	 	Items 6 and 17

 

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	Obligations	 	Section in

        Regional Developer

        Agreement
	 	Disclosure Document Item
	 	 	 	 	 
	(u) Renewal	 	Section 4 of RDA	 	Items 6 and 17
	 	 	 	 	 
	(v) Post-termination obligations  	 	Section 13.2 of RDA	 	Item 17
	 	 	 	 	 
	(w) Non-competition covenants	 	Section 12 of RDA	 	Item 17
	 	 	 	 	 
	(x) Dispute resolution	 	Sections 14, 15.7, and 15.8 of RDA	 	Item 17
	 	 	 	 	 
	(y) Guaranty	 	Section 11.7	 	Item 15

 

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ITEM 10

 

FINANCING

 

We do not offer any
financing for your initial investment. We are unable to estimate whether you will be able to obtain financing for any of your
investment and, if you are able to obtain financing, we cannot predict the terms of the financing. We do not receive payment from
any person for obtaining or placing financing. We do not guarantee your obligations to third parties.

 

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ITEM 11

 

FRANCHISOR’S
ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING

 

Except as listed below, we are not required to provide you
any assistance. 

 

Before your Regional Developer franchise
opens for business, we or our designee will:

 

1.          Within
45 days after you sign the Regional Developer Agreement, but not later than 30 days before you open your Regional Developer franchise
for business, provide the initial training program for our Regional Developer franchises (Regional Developer Agreement –
Section 5.1).

 

The Company’s
initial training program is available to all Regional Developer Owners and one additional person. Before opening for business,
the Regional Developer Owner must attend and complete the initial franchise management-training program to the satisfaction of
the Company. We provide this initial training free of charge to you; however, you must pay the wages, food, lodging and travel
expenses for all of your attendees. The initial training program will last for approximately three (3) days, and will be conducted
by us or our designee at our corporate headquarters in Scottsdale, Arizona, or another location we designate. We will also provide
you with approximately three (3) days of on-site training at the location where you will operate your Regional Developer franchise.
All persons who participate in our initial training program must complete it to our satisfaction.

 

Our initial training
program currently includes the following:

 

	TRAINING PROGRAM
	Subject (1)	 	Hours of

        Classroom

        Training (2)
	 	Hours of

        On the Job

        Training
	 	Location
	Introduction to Regional Developer Program	 	0.5	 	 	 	Scottsdale, AZ
	Workflow of a Regional Developer	 	1.0	 	 	 	Scottsdale, AZ
	Finding and marketing to qualified leads	 	1.0	 	 	 	Scottsdale, AZ
	Present the Franchise Offer	 	1.0	 	 	 	Scottsdale, AZ
	Construction Process	 	2.0	 	 	 	Scottsdale, AZ
	Vendors Briefing	 	2.0	 	 	 	Scottsdale, AZ
	Timeline to Opening	 	2.0	 	 	 	Scottsdale, AZ
	Review the Manuals	 	2.0	 	 	 	Scottsdale, AZ
	Software	 	2.0	 	4.0	 	Scottsdale, AZ and

        Onsite

	Clinic Tracking	 	1.0	 	 	 	Scottsdale, AZ
	Accounting 101	 	1.0	 	 	 	Scottsdale, AZ
	Vendor Meetings	 	3.0	 	 	 	Scottsdale, AZ
	Sales Techniques	 	1.0	 	1.0	 	Scottsdale, AZ and

        Onsite

	Staff	 	 	 	1.0	 	On-Site
	New Patrons	 	 	 	2.0	 	On-Site
	Adjusting / Technique	 	 	 	3.0	 	On-Site
	Daily Operational Duties	 	 	 	3.0	 	On-Site
	Communication Levels	 	 	 	2.0	 	On-Site
	Patron Education	 	 	 	2.0	 	On-Site
	Marketing and Advertising	 	2.0	 	2.0	 	Scottsdale, AZ and

        On-Site

	 TOTAL HOURS	 	21.5	 	20.0	 	 

 

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Explanatory Notes:

 

		(1)	Most of these subjects
                                         are integrated throughout the approximately six (6) day training program (comprised of
                                         21.5 hours of classroom training and 20.0 hours of on-site training). We plan to be flexible
                                         in scheduling training. There currently are no fixed (i.e., monthly or bi-monthly) training
                                         schedules.

 

		(2)	The instruction
                                         materials for our training programs include handouts, computer training, the Manuals,
                                         group discussions, and lectures.

 

		(3)	Although the individual
                                         instructors of the training program may vary, all of our instructors have significant
                                         at least 2 years of experience in their designated subject area. The following are our
                                         main instructors:

 

		·	Matt
                                         Hale – Vice President of Operations and Construction

		·	Chad
                                         Everts – Vice President of Sales and Real Estate

		·	Shawn
                                         Allen, DC – Operations Trainer

 

2.          Lend
to you one copy of our Manual for RDs, which contains our mandatory and suggested specifications, standards and procedures for
operating Regional Developer franchises (Regional Developer Agreement – Section 5.2). Exhibit C to this Disclosure Document
sets forth the Table of Contents for our Manual for RDs. We will also lend you one copy of our Operations Manual for Location
franchises (“Manual for Locations”), which contains our mandatory and suggested specifications, standards and procedures
for operating Location franchises. Exhibit C to this Disclosure Document also sets forth the Table of Contents for our Manual
for Locations. Together, the Manual for RDs and Manual for Locations are referred to as the “Manuals”. We may modify
the Manuals periodically to reflect changes in System Standards, or as we deem appropriate. If your copy of either Manual is lost,
destroyed or significantly damaged, then you must obtain a replacement copy at our then applicable charge (see Item 6). You may
view our Manuals at our corporate headquarters before purchasing your Regional Developer franchise, but must first sign a Confidentiality/Non-Disclosure
Agreement (Exhibit E) promising not to reveal any of the information contained in the Manuals without our permission. See Item
14 for additional information about our Manuals and Exhibit C.

 

3.          Prepare
and/or register any disclosure documents or other documentation that must be prepared, amended, or registered for you to fulfill
your responsibilities to solicit, recruit, and screen prospective franchisees (Regional Developer Agreement – Section 5.4).
Federal and state franchise or business opportunity laws govern the sale and offering of Location franchises, and may require
the preparation, amendment, registration, or registration of all certain documentation and disclosures relating to the Location
franchises offered in your Development Area (the “Documentation”) before you can solicit prospective franchisees.
While we will prepare and register all Documentation necessary for you to begin soliciting prospective franchisees, you must provide
us with any documentation or information we may need to prepare or register the Documentation, and will be responsible for all
costs applicable to you. You must review and become fully familiar with all Documentation related to franchises sold in your Development
Area. Before soliciting a prospective franchisee, you must take reasonable steps to confirm that the information contained in
the Documentation or other materials related to the offer or sale of Location franchises is true, correct, and not misleading,
or in violation of applicable state law related to registration of the Documentation.

 

4.          Review
and approve or disapprove your advertising, marketing, and promotional and/or website materials (Regional Developer Agreement
– Sections 6.8 and 6.9). See the remainder of this Item 11 for additional information about our advertising-related requirements
and approval process.

 

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Post-Opening Obligations:

 

After your Regional Developer franchise
opens for business, we or our designee will:

 

1.          As
we deem appropriate, provide you with additional or refresher training programs (Regional Developer Agreement – Section
5.1). You will be required to participate in periodic webinars and sales calls scheduled by us for Regional Developer franchises.
We may require you to attend up to two (2) additional or refresher training courses each year at our corporate offices, or another
location we designate. You may also be required to attend a national business meeting or convention of up to three (3) days each
year. We will determine the location, frequency, and instructors of these training programs. We may charge reasonable fees for
any courses, conventions, webinars, sales calls, and programs (see Item 6). You must also pay for all travel, lodging, meal, and
personal expenses related to your attendance and the attendance of your personnel.

 

2.          Continue
lending to you a copy of our Manual for RDs and Manual for Locations (Regional Developer Agreement – Sections 5.2).

 

3.          Provide
you with general guidance though bulletins or other written materials (Regional Developer Agreement – Section 5.2).

 

4.          If
we agree to do so, provide you with additional or special guidance, training, or assistance that you request (Regional Developer
Agreement – Section 5.1). If we provide this training, you must pay all of our then-applicable charges, including all per-diem
fees and travel, lodging, meal, and living expenses of our personnel. See Item 6 for additional information.

 

5.          As
necessary, amend, maintain, or renew any Documentation and/or registrations necessary for you to continue to solicit prospective
franchisees (Regional Developer Agreement – Section 5.4).

 

6.          Approve
or disapprove prospective Location franchisees (the “Prospective Franchisees”) recommended by you, and their proposed
franchise locations (Regional Developer Agreement – Section 5.5). You must advertise for, solicit, recruit, and screen Prospective
Franchisees to purchase Location franchises in your Development Area. You must investigate each Prospective Franchisee and its
proposed Location franchise site to determine if they meet our standards and policies. After ensuring that a Prospective Franchisee
meets our standards, you may recommend to us the approval of the Prospective Franchisee. You must provide us with all information
that we may request to evaluate your recommendation. We may approve or reject a Prospective Franchisee for any reason. If we disapprove
any Prospective Franchisee, we will notify you in writing of our reasons for the disapproval. If we approve the Prospective Franchisee,
you must provide the Prospective Franchisee with a copy of our then-current Franchise Agreement for the Prospective Franchisee
to sign.

 

7.          Review
and approve or disapprove your advertising, marketing, and promotional and/or website materials (Regional Developer Agreement
– Sections 6.9 and 6.10). See the remainder of this Item 11 for additional information about our advertising-related requirements
and approval process.

 

8.          Pay
you any compensation that you are owed under the Regional Developer Agreement (Regional Developer Agreement – Section 8).

 

9.          Allow
you to continue using our Marks and confidential information in operating your Regional Developer franchise (Regional Developer
Agreement – Sections 9 and10). See Items 13 and 14 for additional information.

 

10.         Indemnify
you against damages and expenses you incur in a trademark infringement proceeding disputing your authorized use of any Mark in
compliance with the Regional Developer Agreement (Regional Developer Agreement – Section 9.5). See Item 13 for additional
information.

 

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11.         If
we establish a local or regional advertising cooperative that covers all or any part of your Development Area, approve or disapprove
any advertising, marketing, or promotional materials created by the cooperative (Regional Developer Agreement – Section
6/7). Though there currently are no local or regional cooperatives, we may create a cooperative to support the advertising and
marketing needs of their respective members. See Items 6, 8, and the rest of this Item 11 for additional information about the
local and regional advertising cooperatives that we may create.

 

Advertising and Marketing

 

Advertising by
You

 

You may develop, at
your cost, advertising and promotional materials for your use, but may not use them until after we have approved them in writing.
You must submit to us for our approval samples of all advertising and promotional materials not prepared or previously approved
by us that you wish to use. We will not unreasonably withhold our approval. If you do not receive our written disapproval within
15 days from the date we receive the materials, the materials will be deemed to have been approved. Any materials submitted to
us for approval will become our intellectual property. (Regional Developer Agreement – Section 10). We anticipate that you
will spend between $500 and $1,000 a month in advertising in your Development Area.

 

If
one is created, then you are also required to join and participate in The Joint Advertising Cooperative (“Co-op”),
which is an association of all other franchise owners whose Franchised Businesses are located within your Area of Dominant Influence
(“ADI”). An ADI is an exclusive geographic market area used as a device to measure
the market covered by a radio or television station and determined by which station receives the most viewing hours. The population
within this area receives the same programming. One function of the Co-op is to establish a local advertising pool, of which the
funds must be used for Location franchises and/or Regional Developer franchises advertising only and for the mutual benefit of
each Co-op member. The Franchise Owner must contribute to the pool in accordance with the rules and regulations of the Co-op,
as determined by its members. Amounts contributed to the advertising pool by a Franchise Owner may be considered as spent for
local advertising, and therefore toward the minimum local advertising requirement that we establish in the future. (Regional Developer
Agreement – Section 6.7) 

 

Advertising by
Us

 

We may create an advertising
fund ("Ad Fund") for our Location franchises to accomplish those advertising and promotional programs we deem necessary
or appropriate. We do not intend to create an Ad Fund for our Regional Developer franchises. We may increase or decrease each
Location franchises contributions to the Ad Fund upon 30 days written notice. There is currently no Ad Fund for Location franchises.
Currently, we do not charge an Ad Fund fee, but reserve the right to do so in the future.

 

We will direct all
marketing programs financed by any Ad Fund, and will have sole discretion over the creative concepts, materials and endorsements
used by any Ad Fund, and the geographic, market, and media placement and allocation of any Ad Fund. An Ad Fund may be used to
pay the costs of administering regional and multi-regional advertising programs, including purchasing direct mail and other media
advertising; employing advertising agencies and supporting public relations, market research, and other advertising and marketing
firms; and paying for advertising and marketing activities that we deem appropriate, including the costs of participating in any
national or regional trade shows. We will not use Ad Fund contributions for advertising that is principally a solicitation for
the sale of franchises.

 

An Ad Fund will be
accounted for separately from our other funds, and will not be used to pay any of our general operating expenses, except for salaries,
administrative costs, and overhead that we incur in activities reasonably related to the administration of the Ad Fund and its
marketing programs, including preparing advertising and marketing materials, and collecting and accounting for contributions to
the Ad Fund. We may spend in any fiscal year an amount greater or less than the aggregate contributions to the Ad Fund in that
year, and the Ad Fund may borrow from us or other lenders to cover the Ad Fund’s deficits, or invest any surplus for future
use by the Ad Fund. We will prepare an annual statement of monies collected and costs incurred by an Ad Fund, and will provide
it to you upon written request.

 

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We may cause an Ad
Fund to be incorporated or operated through an entity separate from us when we deem appropriate, and the entity will have the
same rights and duties as we do under a Franchise Agreement or Regional Developer Agreement (as the case may be). If established,
an Ad Fund will be intended to enhance recognition of the Marks and patronage of The Joint franchises, or enhance the franchise
opportunities available through our franchises. Although we will endeavor to use an Ad Fund to develop advertising and marketing
materials and programs and place advertising that will benefit all franchises, we do not have to ensure that the Ad Fund’s
expenditures in or affecting any geographic area are proportionate or equivalent to the contributions made by any franchises in
that geographic area, or that any franchises will benefit from the development of advertising and marketing materials or the placement
of advertising by the Ad Fund directly or in proportion to the franchise’s contribution to the Ad Fund. We assume no direct
or indirect liability or obligation to you or any other franchise in connection with the establishment of an Ad Fund, or the collection,
administration, or disbursement of monies paid into an Ad Fund.

 

We may suspend contributions
to, and the operations of, an Ad Fund for any period we deem appropriate, and may terminate an Ad Fund upon 30 days' written notice
to you. All unspent monies held by an Ad Fund on the date of termination will be distributed to us, our affiliates, and you and
our other franchisees in proportion to each party’s respective contributions to the Ad Fund during the preceding 12-month
period. We may reinstate a terminated Ad Fund upon the same terms and conditions set forth in a Franchise Agreement upon 30 days'
advance written notice to you.

 

As of the date of
this Disclosure Document, there is no Ad Fund or Advertising Co-ops. The Company has the right to create such organizations and
to decide how they will be run. It may do so in the future. The specific manner in which they will be organized and governed has
yet to be determined.

 

Website

 

You must also obtain
our prior written approval to operate a website separate from our website. You must submit to us for our approval samples of the
proposed website’s domain name, format, and visible and non-visible content before using or changing the website. Your website
must include all information or hyperlinks that we require. We may revoke our approval of a previously approved website at any
time. (Regional Developer Agreement – Section 6.10)

 

Computer System 

 

You must use the computer
hardware and software (collectively, “Computer System”) that we periodically designate to operate your Regional Developer
franchise. (Regional Developer Agreement – Section 6.12) You must obtain the Computer System, software licenses, maintenance
and support services, and other related services from the suppliers we specify (which may include or be limited to us and/or our
affiliates). (See Items 6 and 7 for more information regarding the cost and fees associated with the Computer System) We may periodically
modify the specifications for, and components of, the Computer System. These modifications and/or other technological developments
or events may require you to purchase, lease, and/or obtain by license new or modified computer hardware and/or software, and
obtain service and support for the Computer System. The Regional Developer Agreement does not limit the frequency or cost of these
changes, upgrades, or updates. We have no obligation to reimburse you for any Computer System costs. Within 60 days after you
receive notice from us, you must obtain the components of the Computer System that we designate and ensure that your Computer
System, as modified, is functioning properly.

 

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We may charge you
a reasonable fee for (i) installing, providing, supporting, modifying, and enhancing any proprietary software or hardware that
we develop and license to you; and (ii) other Computer System-related maintenance and support services that we or our affiliates
provide to you. If we or our affiliates license any proprietary software to you or otherwise allow you to use similar technology
that we develop or maintain, then you must sign any software license agreement or similar instrument that we or our affiliates
may require. See Items 6 and 7 for information regarding the cost of required computer software, and the monthly fees associated
with operating your Computer System

 

You will have sole
responsibility for: (1) the acquisition, operation, maintenance, and upgrading of your Computer System; (2) the manner
in which your Computer System interfaces with our computer system and those of other third parties; and (3) any and all consequences
that may arise if your Computer System is not properly operated, maintained and upgraded.

 

Your Computer System
must be capable of supporting our required software, with internet capability. You will also be required to purchase certain software,
and to pay monthly charges associated with your Computer System. Currently, you will need a Dell Vostro 230 Slim Tower, or an
equivalent computer, and a standard monitor, in order to run our proprietary office management software. You will also need a
printer that is compatible with your computer and our software. The Computer System is used to track and store all data relating
to the operation of your franchise and the franchises in our system. We have the right to access all information stored on your
Computer System which relate to your franchise.

 

We estimate the cost
of purchasing the Computer System and related software will range from $1,500 to $2,500. In addition to the cost of purchasing
the hardware and software associated with the Computer System, you will be required to pay reoccurring charges associated with
the continuing use and upgrade of our proprietary office management software. Currently this fee is $275/month but is subject
to change. You will also be required to pay the monthly cost of maintaining high speed internet access at your site. We estimate
that this cost will be between $20 and $75 a month depending on the internet service provider.

 

Periodic Inspections

 

You must operate your
Regional Developer franchise in accordance with the Regional Developer Agreement and the Manual for RDs. We reserve the right
to conduct period inspections of your Franchised Business to ensure that you are in compliance with your Regional Developer Agreement,
Manual for RDs, and our other written directives and standards. We may terminate your Regional Developer Agreement if you do not
operate your business in compliance with the Regional Developer Agreement or the Manual for RDs.

 

Time to Open

 

You must open your
Regional Developer franchise within 45 days after you receive your initial training from us, or 90 days after signing your Regional
Developer Agreement, whichever occurs first. (Regional Developer Agreement – Section 2.2) We estimate that Regional Developer
franchises will typically open for business approximately 2-3 months after signing the Regional Developer Agreement. Factors affecting
this length of time include locating a site and signing a lease, if you choose to operate from a leased premises, construction
or remodeling of the site, completion of required training, financing arrangements, local ordinance and building code compliance,
delivery and installation of equipment or supplies, and hiring and training of your staff.

 

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ITEM 12

 

TERRITORY

 

Your Regional Developer
Agreement grants you an exclusive Development Area, the specific size and location of which depend on population demographics,
your capacity to recruit prospective Location franchisees and provide Support Services in the Development Area, and the number
of Location franchises we believe the Area can sustain. You and we will mutually agree on your Development Area when you sign the
Regional Developer Agreement. There is no specific minimum or maximum area that we must include in your Development Area. Your
Development Area may not be changed unless you and we both agree to the change in writing.

 

If you are in compliance
with your Regional Developer Agreement, then we and our affiliates will not operate, establish, grant, or operate in your Development
Area another Regional Developer franchise offering Location franchises, or any Location franchises not required to be developed
under your Regional Developer Agreement. The continuation of your territorial exclusivity depends upon your compliance with the
minimum development obligations defined in your Regional Developer Agreement.

 

Your territorial exclusivity
is limited to the total number of franchises you are authorized to develop in your Development Area at the time of signing your
Regional Developer Agreement. You have the option to purchase the right to develop additional Location franchises within your Development
Area, and receive additional territorial protection for any additional Location franchises you purchase within your Development
Area. However, if you choose not to exercise the right to purchase the rights to develop additional Location franchises within
your Development Area, we retain the right develop or sell the right to develop additional Location franchises within your Development
Area, and you will not receive any compensation or royalty fees for such Location franchises.

 

You may solicit prospective
Location franchisees residing outside your Development Area but interested in opening a franchise within your exclusive Development
Area without having to pay any special compensation to us or any other Regional Developer. Likewise, Regional Developer outlets
owned by us, our affiliates (if applicable), or other Regional Developers may solicit prospective franchisees residing in your
Development Area but interested in opening a franchise in another Development Area without having to pay you any special compensation.
You may not solicit prospective franchisees for a Location franchise located outside of your exclusive Development Area. We will
forward to you any leads or referrals that we receive from prospective franchisees interested in purchasing a Location franchise
in your Development Area, and you will be entitled to the compensation referred to in Item 11 only if these prospective franchisees
purchase a Location franchise in your Development Area.

 

Company Reserved Rights

 

We and our affiliates
reserve the right to engage in any activities we deem appropriate that your Regional Developer Agreement does not expressly prohibit,
whenever and wherever we desire, including the right to:

 

(a)          establish
and operate Location and Regional Developer franchises, and granting rights to other persons to establish and operate Location
or Regional Developer franchises, on any terms and conditions we deem appropriate and at any locations other than within the Development
Area;

 

(b)          provide
and grant rights to other persons to provide, goods and services dissimilar to and/or not competitive with those provided by Location
franchises to customers located within your Development Area;

 

(c)          acquire
the assets or ownership interest of one or more businesses providing products and services similar to those provided at Location
franchises, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever
these businesses (or the franchisees or licensees of these businesses) are located or operating (including within your Development
Area; and

 

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(d)          be
acquired (regardless of the form of transaction) by a business providing products and services similar to those provided at Location
franchises, or by another business, even if such business operates, franchises and/or licenses competitive businesses within your
Development Area.

 

ITEM 13

 

TRADEMARKS

 

The Company grants
you the right and license to use the Proprietary Marks and the System solely in connection with your Franchised Business. You may
use our trademark “The Joint... The Chiropractic PlaceTM” and design and such other Proprietary Marks as
are designated in writing by the Company for your use. In addition, you may use them only in the manner authorized and permitted
by the Company and you may not directly or indirectly contest the Company’s ownership of or rights in the Proprietary Marks.

 

“The Joint...A
Chiropractic Place®” is a service mark registered on the Principal Register of the United States Patent and Trademark
Office (“USPTO”) on March 2, 2004 under Registration Number 2819916. “The Joint... The Chiropractic PlaceTM”
is a service mark registered on the Principal Register of the USPTO on February 22, 2011 under Registration Number 3922558. Currently,
we have registrations pending for two additional marks. The first is for the words, letters and stylized form of “The Joint...The
Chiropractic Place”, serial number 85714393, filed on August 27, 2012. The second is for the standard character mark “The
Joint We’ve Got Your Back”, serial number 85694207, filed on August 2, 2012. All required affidavits have been filed.

 

There are no agreements
currently in effect that significantly limit the Company’s right to use or license the use of the Proprietary Marks in a
manner material to the franchise. The logo is part of the Company’s Proprietary Marks. With respect to the Marks, there are
currently no effective material determinations of the UPSTO, the Trademark Trial and Appeal Board, or any state trademark administrator
or court, or any pending infringement, opposition, or cancellation proceeding.

 

The Company will indemnify
against or reimburse for expenses you incur in defending claims of infringement or unfair competition arising out of your use of
the Proprietary Marks. You are required to notify the Company immediately when you become aware of the use, or claim of right to,
a Proprietary Mark identical or confusingly similar to our Proprietary Marks. If litigation involving the Proprietary Marks is
instituted or threatened against you, you must notify the Company promptly and cooperate fully with the Company in defending or
settling the litigation. The Company, at its option, may defend and control the defense of any proceeding relating to any Proprietary
Marks.

 

The Company has no
actual knowledge of either superior prior rights or infringing uses that could materially affect a Franchise Owner’s use
of the Proprietary Marks in any state.

 

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ITEM 14

 

PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION

 

Patents Rights

 

The Company owns no
rights in or to any patents that are material to the franchise.

 

Copyrights

 

The Company claims
a copyright and treats the information in the Manuals as confidential trade secrets, but you are permitted to use the material
as part of your Franchised Business.

 

Confidential Operations Manuals

 

Under
the Regional Developer Agreement, you must operate the Franchised Business in accordance with the standards, methods, policies,
and procedures specified in the Manual for RDs. You will be loaned a copy of the Manual for RDs and Manual for Locations for the
term of the Regional Developer Agreement, when you have completed the initial training program to our satisfaction. You must operate
your Regional Developer franchise strictly in accordance with the Manual for RDs, as it may be revised by the Company from time
to time. You must at all times, treat the Manuals and the information in them, as well as any other materials created for or approved
by use for the operation of your Franchised Business, as confidential, as required by the Regional Developer Agreement. You must
use all reasonable efforts to maintain this information as secret and confidential. You must not copy, duplicate, record or otherwise
make them available to any unauthorized person. The Manuals will remain our sole property
and must be returned in the event that you cease to be a Regional Developer franchise owner.

 

We may from time to
time revise the contents of the Manual for RDs and Manual for Locations, and you must comply with each new or changed provision
in the Manual for RDs. You must ensure that our Manuals are kept current at all times. In the event of any dispute as to the contents
of the Manual for RDs, the terms of the master copies maintained by us at Company’s home office will be controlling.

 

Confidential Information

 

The Regional Developer
requires you to maintain all Confidential Information of the Company as confidential both during and after the term of the Agreement.
“Confidential Information” includes all information, data, techniques and know-how designated or treated by the Company
as confidential and includes the Manuals. You may not at any time disclose, copy or use any Confidential Information except as
specifically authorized by the Company. Under the Agreement, you agree that all information, data, techniques and know-how developed
or assembled by you or your employees or agents during the term of the Regional Developer Agreement and relating to the System
will be deemed a part of the Confidential Information protected under the Regional Developer Agreement. See Item 15 below concerning
your obligation to obtain confidentiality and non-competition agreements from persons involved in the Franchised Business.

 

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ITEM 15

 

OBLIGATION TO PARTICIPATE IN THE

ACTUAL OPERATION OF THE FRANCHISED BUSINESS

 

You must personally
participate in the direct operation of your Regional Developer franchise. If you do not personally participate in the direct operation
of your franchise on a full-time basis, then you are obligated to have a fully trained Manager operate the franchise. While we
do not require that your Manager have an equity interest in the franchise, we believe that only a person with an equity interest
can adequately ensure that our standards of quality and competence are maintained. The Regional Developer Agreement requires that
you be directly involved in the day-to-day operations and utilize your best efforts to promote and enhance the performance of the
Franchised Business. While in most cases Franchise Owners will seek additional assistance for the labor-intensive portions of the
business, we have built our reputation on Franchise Owner participation and believe it is crucial for continued success.

 

Any Manager you employ
at the launching of your franchise operations must complete the initial management-training course required by the Company. All
subsequent Managers must be trained fully according to our standards by either the Franchise Owner or the Company. However, the
Company may charge a fee for this additional training. See Item 6 and the Manual for RDs for details.

 

Each individual who
holds an ownership interest in the Franchise Owner must personally guarantee all of the obligations of the Franchise Owner under
the Regional Development Agreement. (See Exhibit 4 to the Regional Developer Agreement - Owner’s Guaranty and Assumption
of Obligations)

 

At the Company’s
request, you must obtain and deliver executed covenants of confidentiality and non-competition from any persons who have or may
have an ownership interest in the Franchise Owner or in the franchise, or who receive or have access to training and other confidential
information under the System. The covenants must be in a form satisfactory to us, and must provide that we are a third party beneficiary
of, and have the independent right to enforce the covenants.

 

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ITEM 16

 

RESTRICTIONS ON WHAT THE FRANCHISEE MAY
SELL

 

You must operate the
Franchised Business in strict conformity with all prescribed methods, procedures, policies, standards, and specifications of the
System, as set forth in the Manual for RDs and in other writings by the Company from time to time. You must use your Regional Developer
franchise sales office only for the operation of the Franchised Business and may not operate any other business at or from such
office without the express prior written consent of the Company.

 

The Company requires
you to offer and sell only those goods and services that the Company has approved. The Company maintains a written list of approved
goods and services in its Manual for RDs, which the Company may change from time to time (see Item 11 in this Disclosure Document).

 

You must offer all
goods and services that the company designates as required for all franchises. In addition, the Company may require you to comply
with other requirements (such as state or local licenses, training, marketing, insurance) before the Company will allow you to
offer certain optional services.

 

We reserve the right
to designate additional required or optional services in the future and to withdraw any of our previous approvals. In that case,
you must comply with the new requirements. There are no express limitations on our right to designate additional or operational
services; however, such services will be reasonably related to our franchise system or model.

 

See Items 8, 9, 11
and 12 for more information about your obligations and restrictions.

 

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ITEM 17

 

RENEWAL, TERMINATION, TRANSFER

AND DISPUTE RESOLUTION

 

THE FRANCHISE RELATIONSHIP

 

This table lists
important provisions of the Regional Developer Agreement. You should read these provisions in the agreements attached to this Disclosure
Document.

 

	

 Provision	 	
        Section in Regional

        Developer

        Agreement
	 	Summary
	 	 	 	 	 
	a.   Length of the term of the franchise	 	Section 4	 	10 years, subject our option to repurchase your Regional Developer franchise after three (3) full years.
	 	 	 	 	 
	b.   Renewal or extension of the term	 	Section 4	 	Your renewal rights permit you to remain a Regional Developer after the initial term of your Regional Developer expires.  If you wish to do so, and you satisfy the required pre-conditions to renewal, we will offer you the right to one (1) renewal term of 10 years.  
	 	 	 	 	 
	c.   Requirements for you to renew or extend	 	Section 4	 	You must: have substantially complied with Regional Developer Agreement; give notice of intent to renew; sign new Regional Developer Agreement in our then current form which may include terms and conditions materially different from those in the original Regional Developer Agreement, including (e.g., no further renewals, higher royalty fees, etc.; sign general release of claims against us and related parties (see Exhibit G); pay the applicable renewal fee (see Item 6); cure any defaults; and pay all amounts owed to us.
	 	 	 	 	 
	d.   Termination by you	 	No provision	 	You may terminate the Regional Developer Agreement on any grounds available at law.  
	 	 	 	 	 
	e.   Termination by us without cause	 	No provision	 	Not applicable.
	 	 	 	 	 
	f.   Termination by us with cause	 	Section 13.1	 	Only upon written notice to you.
	 	 	 	 	 
	g.   "Cause" defined – curable defaults 	 	Section 13.1	 	You do not pay us amounts due within 10 days after written notice; or you do not comply with any other provision of the Regional Developer Agreement within 30 days after written notice of default.

 

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THE FRANCHISE RELATIONSHIP

 

This table lists
important provisions of the Regional Developer Agreement. You should read these provisions in the agreements attached to this Disclosure
Document.

 

	

 Provision	 	
        Section in Regional

        Developer

        Agreement
	 	Summary
	 	 	 	 	 
	h.  "Cause" defined – defaults which cannot be cured	 	Section 13.1	 	You make an unauthorized transfer; you fail to meet your minimum development obligation for any development period; you make material misrepresentation or omission in acquiring or operating the franchise; you do not satisfactorily complete initial training; you are convicted of or plead guilty to a felony; you fail to maintain required insurance; you engage in dishonest, unethical, or illegal conduct, or any conduct that we believe adversely affects the reputation of us, our franchises, or goodwill of the Marks; you knowingly make unauthorized use or disclosure of the Manuals or Confidential Information; you fail on 2 or more occasions in any 12-month period or 3 or more separate occasions in any 24-month period to timely pay amounts due or submit required reports, or comply with the Regional Developer Agreement; you become insolvent, or make an assignment for the benefit of creditors; or any attachment or seizure of the franchise assets is not vacated within 30 days.  
	 	 	 	 	 
	i.   Your obligations on termination/non-renewal	 	Section 13.2	 	You must cease using our Marks and Confidential Information; cease identifying yourself as our franchisee; cancel fictitious or assumed names related to your use of the Marks; deliver to us within 30 days all advertising, forms, and other materials containing the Marks or related to the franchise; notify search engines of termination and your right to use domain names, websites, or other search engines related to the Marks or our franchises; and provide us with evidence of your compliance with the above obligations within 30 days of termination.
	 	 	 	 	 
	j.   Assignment of contract by us	 	Section 11.1	 	Fully transferable by us.
	 	 	 	 	 
	k.   “Transfer” by you - defined	 	Section 11.2(b)	 	Transfer includes: any voluntary, involuntary, direct or indirect assignment, sale, or gift of the franchise; transfer of ownership, merger, exchange, issuance of additional ownership interests, redemption of ownership interests, or sale of exchange of voting interests in you (if you are a legal entity); transfer of interest in the Regional Developer Agreement, you, the franchise, or its assets because of divorce, insolvency or dissolution, or operation of law; transfer because of the death of you or an owner of you; or any pledge of the Regional Developer Agreement or ownership interest in you.

 

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THE FRANCHISE RELATIONSHIP

 

This table lists
important provisions of the Regional Developer Agreement. You should read these provisions in the agreements attached to this Disclosure
Document.

 

	

 Provision	 	
        Section in Regional

        Developer

        Agreement
	 	Summary
	 	 	 	 	 
	l.   Franchisor approval of transfer by franchisee.	 	Section 11.2(b)	 	Any assignment or transfer without our approval is a breach of this Agreement and has no effect.
	 	 	 	 	 
	m.  Conditions for our approval of transfer by you	 	Section 11.3 and 11.4	 	You must pay all amounts owed to us; new owner assumes your obligations; new owner, its affiliates, and its owners do not have any interest in or work for a competitive business; new owner completes or agrees to complete initial training; new owners signs our then-current Regional Developer Agreement and ancillary agreements; new owner has strictly complied with obligations to us and is not in default of those obligations; you pay us a transfer fee (see Item 6); you sign a transfer release (see Exhibit H); you do not identify yourself as current or former franchisee of ours, or use any Mark.  You may transfer the franchise and its assets to a newly formed legal entity principally controlled by you and your principals if the new entity operates the franchise and complies with the Regional Developer Agreement, and you provide information about the transfer to us and the entities owners.   
	 	 	 	 	 
	n.   Our right of first refusal to acquire your business	 	Section 11.6	 	We have 15 days to match any offer.
	 	 	 	 	 
	o.   Our option to purchase your business	 	No provision	 	None
	 	 	 	 	 
	p.   Your death or disability	 	Section 11.5	 	Executor, administrator, or other representative must transfer interest of franchisee or owner within 9 months of your or an owner’s death or disability.  All transfers are subject to provisions in Regional Developer Agreement regulating transfers.
	 	 	 	 	 
	q.   Non-competition covenants during the term of the franchise	 	Section 12.1	 	Neither you, your principals, nor any immediate family members of you or them may perform services for or have any interest in any competitive business.

 

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THE FRANCHISE RELATIONSHIP

 

This table lists
important provisions of the Regional Developer Agreement. You should read these provisions in the agreements attached to this Disclosure
Document.

 

	

 Provision	 	
        Section in Regional

        Developer

        Agreement
	 	Summary
	 	 	 	 	 
	r.   Non-competition covenants after the franchise is terminated or expires	 	Section 12.2	 	Neither you, your principals, nor any immediate family members of you or them may perform services for or have any interest in any competitive business within the Development Area, the Development Area of any other Regional Developer, or within 25 miles of any Location franchise, for 18 months.
	 	 	 	 	 
	s.   Modification of the agreement	 	Section 15.11	 	No modifications unless you and we both sign; we may amend Manual for RDs at any time.
	 	 	 	 	 
	t.   Integration/merger clause	 	Section 15.11	 	The Regional Developer Agreement supersedes all prior agreements, representations, and promises.  However, nothing in the Regional Developer Agreement will have the effect of modifying or limiting the representations made in this Disclosure Document or any of its attachments or addenda.  
	 	 	 	 	 
	u.   Dispute resolution by arbitration or mediation	 	Section 14	 	Except for certain claims, you and we must arbitrate all disputes in Maricopa County, Arizona (subject to state law).
	 	 	 	 	 
	v.   Choice of forum	 	Section 15.8	 	Maricopa County, Arizona (subject to state law).
	 	 	 	 	 
	w.   Choice of law	 	Section 15.7	 	Arizona law governs, except for matters regulated by the United States Trademark Act (subject to state law).

 

 

Additional Information

 

These states have statutes
that may supersede the Regional Developer Agreement in your relationship with the Company including the areas of termination and
renewal of your franchise:

 

Arkansas - Stat.
Sec. 70-807; California - Bus. & Prof. Code Sections 20000-20043; Connecticut -Gen. Stat. Section 42-133e et seq.; Delaware
- Code, tit.; Hawaii - Rev. Stat. Section 482E-1; Illinois - Rev. State Chapter 121 1/2, par. 1719-1720; Indiana - Stat. Section
23-2-2.7; Iowa - Code Sections 532H.1-523H.17; Georgia - Stat. Section 19.854(27); Minnesota - Stat. Section 80C.14; Mississippi
- Code Section 75-24-51; Missouri - Stat. Section 407.400; Nebraska - Rev. Stat. Section 87-401; New Jersey - Stat. Section 56:10-1;
South Dakota - Codified Laws Section 37-5A-51; Virginia - Code 13.1-557-574 - 13.1-564; Washington - Code Section 19.100.180; Wisconsin
- Stat. Section 135.03.

 

See Exhibit J for a
list of state-specific disclosures and requirements.

 

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ITEM 18

 

PUBLIC FIGURES

 

We do not use any public
figure to promote the Regional Developer franchise. You have no right to use the name of any public figure for purposes of promotional
efforts, advertising or endorsements, except with our prior written consent. No public figure has any investment in the System
or us.

 

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ITEM 19

 

FINANCIAL PERFORMANCE REPRESENTATIONS

 

The FTC’s Franchise
Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned
outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial
performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records
of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for
example by providing information about possible performance at a particular location or under particular circumstances.

 

We do not make any
representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised
outlets. We also do not authorize our employees or representatives to make such representations either orally or in writing. If
you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other
financial performance information or projections of your future income, you should report it to our management by contacting us,
Chad Everts, The Joint Corp., 9383 E. Bahia Drive, Suite 100, Scottsdale, AZ 85260, telephone (480) 245-5960, the Federal Trade
Commission, and any appropriate state regulatory agencies.

 

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ITEM 20

 

OUTLETS AND FRANCHISEE
INFORMATION

(Regional Developers)

 

Table No. 1

Systemwide Outlet Summary

For Years 2010 to 2012

 

	Outlet Type	 	Year	 	Outlets at the 
Start of the Year	 	Outlets at the End 
of the Year	 	Net Change
	Franchised
	 	2010	 	0	 	0	 	0
	 	 	2011	 	0	 	7	 	+7
	 	 	2012	 	7	 	16	 	+9
	Company-Owned	 	2010	 	0	 	0	 	0
	 	 	2011	 	0	 	0	 	0
	 	 	2012	 	0	 	0	 	0
	Total Outlets	 	2010	 	0	 	0	 	0
	 	 	2011	 	0	 	7	 	+7
	 	 	2012	 	7	 	16	 	+9

 

Table No. 2

Transfers of Outlets From Franchises
to New Owners

(Other than the Franchisor)

For Years 2010 to 2012

 

	State(s)	 	Year	 	Number of Transfers
	Salt Lake City, UT/	 	2010	 	0
	Reno, NV/ Boise Idaho	 	2011	 	0
	Territory	 	2012	 	1
	Total	 	2010	 	0
	 	 	2011	 	0
	 	 	2012	 	1

 

The Joint RD FDD – 2013

    	36

    	 

    

 

Table No. 3

Status of Franchised Outlets*

For Years 2010 to 2013

 

	State	 	Year	 	Outlets 
at Start 
of Year	 	Outlets 
Opened	 	Termina- 
tions	 	Non- 
Renewals	 	Reacquired 
by 
Franchisor	 	Ceased 
Operations 
– Other 
Reasons	 	Outlets at End 
of Year
	California –	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Los Angeles	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	County	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	California –	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Orange/ San	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	Diego Counties	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	Inland Empire	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	California/ Las	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Vegas, Nevada	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	Colorado –	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Denver	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	Tampa and	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Sarasota,	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Florida	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	Atlanta,	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Georgia	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	Idaho, Nevada	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	and Utah	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Louisiana	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Minnesota	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Missouri	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	New Jersey	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	New York	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1

 

The Joint RD FDD – 2013

    	37

    	 

    

 

	State	 	Year	 	Outlets 
at Start 
of Year	 	Outlets 
Opened	 	Termina- 
tions	 	Non- 
Renewals	 	Reacquired 
by 
Franchisor	 	Ceased 
Operations 
– Other 
Reasons	 	Outlets at End 
of Year
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	North Carolina	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	Savannah,	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	GA/Augusta,	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	South Carolina	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Texas	 	2011	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2012	 	1	 	0	 	0	 	0	 	0	 	0	 	1
	Seattle,	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Washington	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	1	 	0	 	0	 	0	 	0	 	1
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Total	 	2011	 	0	 	7	 	0	 	0	 	0	 	0	 	7
	 	 	2012	 	7	 	9	 	0	 	0	 	0	 	0	 	16

 

Table No. 4

Status of Company-Owned Outlets For

For Years 2010 to 2013

 

	State	 	Year	 	Outlets 
at Start 
of Year	 	Outlets 
Opened	 	Termina- 
tions	 	Non- 
Renewals	 	Reacquired 
by 
Franchisor	 	Ceased 
Operations 
– Other 
Reasons	 	Outlets at 
End of Year
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	All States	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2010	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	Total	 	2011	 	0	 	0	 	0	 	0	 	0	 	0	 	0
	 	 	2012	 	0	 	0	 	0	 	0	 	0	 	0	 	0

 

The Joint RD FDD – 2013

    	38

    	 

    

 

Table No. 5

Projected Openings
for 2013

 

	State	 	Regional 
Developer 
Agreements 
Signed But 
Outlets Not 
Opened	 	Projected New 
Franchised Outlets 
in the Current Fiscal 
Year 2013	 	Projected New Company-Owned Outlets in the 
Current Fiscal Year 2012
	Michigan	 	0	 	1	 	0
	All Other States	 	0	 	0	 	0
	Total	 	0	 	1	 	0

 

Exhibit F lists the
names of all of our operating Regional Developer franchisees and their addresses and telephone numbers as of December 31, 2012.
Exhibit F lists the Regional Developer franchisees who have signed Regional Developer Agreements for development areas which were
not yet operational as of December 31, 2012, and also lists the name, city and state, and business telephone number (or, if unknown,
the last known home telephone number) of every Regional Developer franchisee who had an outlet terminated, cancelled, not renewed,
or otherwise voluntarily or involuntarily ceased to do business under a Regional Developer during the most recently completed fiscal
year, or who has not communicated with us within 10 weeks of the issuance date of this disclosure document.  If you buy
this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.

 

None of our Regional Developer franchisees
have signed confidentiality clauses with us during the last three years which would restrict their ability to speak openly about
their experience with us.

 

The Joint RD FDD – 2013

    	39

    	 

    

 

ITEM 21

FINANCIAL STATEMENTS

 

Attached to this Disclosure
Document as Exhibit D are: 1) our consolidated audited Financial Statements, for the years ending December 31, 2012 and 2011; and
2) our consolidated audited Financial Statements for the years ending December 31, 2011 and 2010.

 

The Joint RD FDD – 2013

    	40

    	 

    

 

ITEM 22

 

CONTRACTS

 

		·	Regional Developer Agreement with state specific addenda (Exhibit B)

 

		·	Owner’s Guaranty and Assumption of Obligations (Exhibit 4 to Regional Developer Agreement)

 

		·	General Release (Exhibit G)

 

		·	Transfer Agreement (Exhibit H)

 

The Joint RD FDD – 2013

    	41

    	 

    

 

ITEM 23

 

RECEIPTS

 

Exhibit J includes
Receipts acknowledging that you received this Disclosure Document. Please return one Receipt to us and retain the other for your
records. If you are missing these Receipts, please contact us at this address or telephone number:

 

The Joint Corp.

9383 East Bahia Drive, Suite 100

Scottsdale, Arizona 85260

Telephone (480) 245-5960

www.thejoint.com

 

The Joint RD FDD – 2013

    	42

    	 

    

 

Exhibit
A

 

STATE ADMINISTRATORS/AGENTS FOR SERVICE
OF PROCESS

 

The Joint RD FDD - 2013 – Exhibit A

    	1

    	 

    

 

STATE ADMINISTRATORS/AGENTS FOR SERVICE
OF PROCESS

 

Following is information
about our agents for service of process, as well as state agencies and administrators whom you may wish to contact with questions
about The Joint Corp.

 

Our agent for service of process in the
State of Delaware is:

 

THE CORPORATION TRUST COMPANY

CORPORATION TRUST CENTER, 1209 ORANGE STREET

WILMINGTON, DE 19801

 

We intend to register
the franchises described in this Disclosure Document in some or all of the following states in accordance with applicable state
law. If and when we pursue franchise registration (or otherwise comply with the franchise investment laws) in these states, we
will designate the designated state offices or officials as our agents for service of process in those states:

 

	State	 	State Agency	 	Agent for Service of Process
	 	 	 	 	 
	CALIFORNIA	 	
        Commissioner of Corporations

        Department of Corporations

        Suite 750

        320 West 4th Street

        Los Angeles, CA 90013

        (213) 576-7505
	 	
        California Commissioner of Corporations

        Department of Corporations

        Suite 750

        320 West 4th Street

        Los Angeles, CA 90013

        (213) 576-7505

	 	 	 	 	 
	HAWAII	 	
        Business Registration Division

        Department of Commerce and

        Consumer Affairs335 Merchant Street, Room 203

        Honolulu, Hawaii 96813

        (808) 586-2722

         
	 	
        Commissioner of Securities of the Department of Commerce
        and Consumer Affairs

        335 Merchant Street, Room 203

        Honolulu, Hawaii 96813

         

	 	 	 	 	 
	ILLINOIS	 	
        Office of Attorney General

        Franchise Division

        500 South Second Street

        Springfield, IL 62706

        (217) 782-4465
	 	
        Illinois Attorney General

        Franchise Division

        500 South Second Street

        Springfield, IL 62706

	 	 	 	 	 
	INDIANA	 	
        Indiana Secretary of State Securities Division

        Room E-1 11

        302 West Washington Street Indianapolis, IN 46204

        (317) 232-6681
	 	
        Indiana Secretary of State

        State Securities Division

        Room E-1 11

        302 West Washington Street

        Indianapolis, IN 46204

         

 

The Joint RD FDD - 2013 – Exhibit A

    	2

    	 

    

 

	MARYLAND

	 	Office of the Attorney General Division of Securities

200 St. Paul Place

Baltimore, MD 21202-2020

(410) 576-6360

	 	Maryland Securities Commissioner

200 St. Paul Place

Baltimore, MD 21202-2020

	 	 	 	 	 
	MICHIGAN	 	
        Michigan Department of Attorney General Consumer
        Protection Division

        Antitrust and Franchise Unit

        670 Law Building

        Lansing, MI 48913

        (517) 373-7117
	 	
        Michigan Department of Commerce, Corporations and
        Securities Bureau

        Antitrust and Franchise Unit

        670 Law Building

        Lansing, MI 48913

         

	 	 	 	 	 
	MINNESOTA	 	
        Minnesota Department of Commerce

        85 7th Place East, Suite 500

        St. Paul, MN 55101-2198

        (651) 296-4026
	 	
        Minnesota Commissioner of Commerce

        85 7th Place East

        Suite 500

        St. Paul, MN 55101-2198

         

	 	 	 	 	 
	NEW YORK	 	
        New York State Department of Law Bureau of Investor
        Protection

        and Securities

        120 Broadway, 23rd Floor

        New York, NY 10271

        (212) 416-8211
	 	
        Secretary of State of the State of New York

        41 State Street

        Albany, New York 11231 and

        United Corporate Services, Inc.

        10 Bank Street, Suite 560

        White Plains, NY 10606

	 	 	 	 	 
	NORTH DAKOTA	 	
        Office of Securities Commissioner

        Fifth Floor

        600 East Boulevard

        Bismarck, ND 58505-0510

        (701) 328-4712
	 	
        North Dakota Securities Commissioner

        Fifth Floor

        600 East Boulevard

        Bismarck, ND 58505-0510

         

	 	 	 	 	 
	RHODE ISLAND	 	
        Department of Business Regulation Division of Securities1511
        Pontiac Avenue

        Cranston, RI 02920

        (401) 462-9527

         
	 	
        Director of Rhode Island Department of Business Regulation
        Floor Division of Securities

        1511 Pontiac Avenue

        Cranston, RI 02920

         

	 	 	 	 	 
	SOUTH DAKOTA	 	
        Department of Revenue and Regulation

        Division of Securities

        445 East Capitol

        Pierre, SD 57501

        (605) 773-4823
	 	
        Director of South Dakota Division of Securities

        445 East Capitol

        Pierre, SD 57502

         

 

 

The Joint RD FDD - 2013 – Exhibit A

    	3

    	 

    

 

	VIRGINIA	 	
        State Corporation
        Commission

        Division
        of Securities and Retail Franchising

        1300 East Main Street, 9th Floor

        Richmond, VA 23219

        (804) 371-9051
	 	
        Clerk of State Corporation Commission

        1300 East Main Street, 1st Floor

        Richmond, VA 23219

        And United Corporate Services, Inc.

        700 East Main Street, Suite 1700

        Richmond, VA 23218

	 	 	 	 	 
	WASHINGTON	 	
        Department of Financial Institutions

        Securities Division

        150 Israel Road

        Tumwater, Washington 98501

        (360) 902-8760
	 	
        Director of Washington Financial Institutions

        Securities Division

        150 Israel Road

        Tumwater, Washington 98501

         

         

	 	 	 	 	 
	WISCONSIN	 	
        Wisconsin Securities Commissioner

        Securities and Franchise Registration

        345 W. Washington Avenue

        Madison, WI 53703

        (608) 266-8559
	 	
        Commissioner of Securities of Wisconsin

        Securities and Franchise

        Registration

        345 W. Washington Avenue

        Madison, WI 53703

         

 

The Joint RD FDD - 2013 – Exhibit A

    	4

    	 

    

 

Exhibit
B

 

REGIONAL DEVELOPER AGREEMENT

 

The Joint RD FDD – Exhibit B – RD Agreement

    	 

    	 

    

 

THE JOINT CORP.

 

REGIONAL DEVELOPER AGREEMENT

 

	 	 
	 	 
	 	 
	 	Date of Agreement

 

The Joint RD FDD – Exhibit B – RD Agreement

    	 

    	 

    

 

TABLE OF CONTENTS 

 

	SECTION	 	PAGE
	 	 	 	 
	1.	GRANT OF RIGHTS	 	1
	2.	REGIONAL DEVELOPER’S DEVELOPMENT OBLIGATION	 	2
	2.1	Minimum Development Obligations and Development
Schedule	 	2
	2.2	Regional Developer Sales Office and Opening	 	2
	3.	EXCLUSIVITY	 	2
	3.1	Territorial Rights	 	2
	3.2	Rights Maintained by Company	 	2
	4.	TERM	 	3
	5.	ADDITIONAL OBLIGATIONS OF COMPANY AND REGIONAL DEVELOPER	 	4
	5.1	Regional Developer Training	 	4
	5.2	Regional Developer Manual	 	4
	5.3	General Guidance	 	5
	5.4	Franchise Registration and Disclosure	 	5
	5.5	Investigation and Qualification of Prospective
Franchisees	 	5
	5.6	Training and Support	 	6
	5.7	Inspection of Franchises and Operations	 	6
	5.8	Marketing and Promotion	 	6
	6.	OPERATING STANDARDS	 	7
	6.1	Standard of Service	 	7
	6.2	Compliance with Laws and Good Business Practices	 	7
	6.3	Accuracy of Information	 	7
	6.4	Notification of Litigation	 	7
	6.5	Insurance	 	7
	6.6	Proof of Insurance Coverage	 	8
	6.7	Advertising Requirement and Cooperatives	 	8
	6.8	Approval of Advertising.	 	9
	6.9	Websites	 	9
	6.10	Accounting, Bookkeeping and Records	 	9
	6.11	Reports	 	10
	6.12	Computer Systems	 	10
	7.	DEVELOPMENT FEE	 	11
	8.	PAYMENTS TO REGIONAL DEVELOPER	 	11
	8.1	Initial Fee Commission and Conditions of Payment	 	11
	8.2	Commissions on Royalty Fees	 	11
	8.3	Commissions After Termination	 	11
	8.4	Application of Payments	 	12
	8.5	Setoffs	 	12
	9.	MARKS	 	12
	9.1	Ownership and Goodwill of Marks	 	12
	9.2	Limitations on Regional Developer’s Use of Marks	 	12
	9.3	Notification of Infringements and Claims	 	12
	9.4	Discontinuance of Use of Marks	 	13

 

    	i

    	 

    

 

	9.5	Indemnification For Use of Marks	 	13
	10.	CONFIDENTIAL INFORMATION	 	13
	11.	ASSIGNABILITY	 	14
	11.1	Assignability by Company	 	14
	11.2	Assignments by Regional Developer	 	15
	11.3	Conditions for Approval of Assignment or Transfer	 	16
	11.4	Assignment to Entity Principally Controlled By You	 	17
	11.5	Death or Disability	 	18
	11.6	Company’s Right of First Refusal	 	18
	11.7	Ownership Structure	 	19
	12.	NON-COMPETITION	 	19
	12.1	In Term	 	19
	12.2	Post-Term	 	19
	13.	TERMINATION	 	19
	13.1	Termination by Company	 	19
	13.2	Rights and Obligations Upon Termination or Expiration	 	21
	13.3	Termination Fee	 	21
	14.	Mediation and
ARBITRATION	 	22
	15.	GENERAL CONDITIONS AND PROVISIONS	 	22
	15.1	Relationship of Regional Developer to Company	 	22
	15.2	Indemnification	 	23
	15.3	Waiver and Delay	 	23
	15.4	Survival of Covenants	 	23
	15.5	Successors and Assigns	 	23
	15.6	Joint and Several Liability	 	23
	15.7	Governing Law	 	23
	15.8	Consent to Jurisdiction	 	24
	15.9	Waiver of Punitive Damages and Jury Trial.	 	24
	15.10	Limitation of Claims	 	24
	15.11	Entire Agreement	 	24
	15.12	Title for Convenience	 	24
	15.13	Gender	 	24
	15.14	Severability	 	25
	15.15	Fees and Expenses	 	25
	15.16	Notices	 	25
	15.17	Time of Essence	 	26
	15.18	Lien and Security Interest	 	26
	16.	SUBMISSION OF AGREEMENT	 	26
	17.	ACKNOWLEDGMENTS	 	26

 

	EXHIBIT 1	DEVELOPMENT AREA	 
	EXHIBIT 2	MINIMUM DEVELOPMENT OBLIGATIONS	 
	EXHIBIT 3	OWNERSHIP STRUCTURE	 
	EXHIBIT 4	OWNER'S GUARANTY AND ASSUMPTION OF OBLIGATIONS	 
	EXHIBIT 5	STATE-SPECIFIC ADDENDA	 

 

    	ii

    	 

    

 

REGIONAL
DEVELOPER AGREEMENT

 

THIS REGIONAL DEVELOPER
AGREEMENT (the “Agreement”) is made and entered into this _______ day of _____________, 201_______, (the “Effective
Date”), by and between THE JOINT CORP., a Delaware corporation (“Company”, “we”, “us”
or “our”), and ______________________________________ corporation/limited company/partnership (Circle One) (“Regional
Developer”), with reference to the following facts:

 

		A.	We and our affiliates have designed and developed valuable and proprietary formats and systems
for the development and operation of businesses operating single location franchises (“Location franchises” or “Franchises”).
These Franchises offer affordable, convenient and accessible chiropractic care to the general public.

 

		B.	We have developed and use, promote and license certain trademarks, service marks and other commercial
symbols in operating our franchises, including “The Joint...The Chiropractic PlaceTM”, and we may create,
use and license other trademarks, service marks and commercial symbols for use in operating our franchises (collectively, the “Marks”).

 

		C.	We offer franchisees the right to own and operate a Franchise offering the products and services
we authorize (and only the products and services we authorize) and using our business formats, methods, systems, procedures, signs,
designs and layouts, standards, specifications and Marks, all of which we may improve, further develop and otherwise modify from
time to time (collectively, the “System”).

 

		D.	We seek a Regional Developer who will open and operate, or solicit and assist franchisees in opening
and operating numerous Franchises within the geographic area described in Exhibit 1 (the “Development Area”) , and
for the total number of Franchises authorized for development within the Development Area set forth in Exhibit 1 (the “Development
Rights”).

 

		E.	Regional Developer desires to establish a business (a “Regional Developer Business”)
under which it will solicit, qualify, train and assist franchisees (the “Franchisees”) to build and operate Franchises
in the Development Area, and we desire to grant to Regional Developer the right to operate the Regional Developer Business in accordance
with the terms and upon the conditions contained in this Agreement.

 

WHEREFORE,
IT IS AGREED

 

		1.	GRANT OF RIGHTS.

 

Subject to the terms
of this Agreement, we hereby grant to Regional Developer, and Regional Developer hereby accepts, the rights during the Term to
solicit, screen, qualify for final approval by us, train and assist Franchisees to open and operate, Franchises in the Development
Area.

 

The Joint RD FDD – Exhibit C – RD Agreement

    	1

    	 

    

 

		2.	REGIONAL DEVELOPER’S DEVELOPMENT OBLIGATION.

 

2.1          Minimum
Development Obligation and Development Schedule.

 

(a)          Regional
Developer shall solicit, screen, qualify, train and assist Franchisees to construct, equip, open and operate, within the Development
Area, the total number of Franchises set forth in Exhibit 2 (the “Minimum Development Obligation”), in the manner and
within each of the time periods specified therein (the “Development Schedule”).

 

(b)          Each
Franchise shall be the subject of a separate Franchise Agreement (as defined herein). We and the Franchisee shall enter into our
then current form of franchise agreement (the “Franchise Agreement”).

 

(c)          Franchises
which are the subject of a Franchise Agreement executed pursuant this Agreement, shall be counted in determining whether the Minimum
Development Obligation shall have been met within the applicable Development Periods.

 

(d)          During
the initial Term, if we or you wish to establish additional Franchises within the Development Area over and above the Minimum Development
Obligation, and we have determined, in our sole discretion, that the Development Area can sustain such additional Franchises, you
have the right to purchase such additional Franchises within thirty (30) days of receipt of our written offer or your written request,
as applicable, to purchase such additional Franchises at the price set forth in Exhibit 1. If you decline our offer to purchase,
or fail to pay the amount due for such additional Franchises before the end of the thirty (30) day period, we reserve the right
establish and operate, and/or to grant other persons the right to establish and operate, such additional Franchises within your
Development Area

 

2.2          Regional
Developer Sales Office and Opening. Regional Developer shall establish and operate a franchise sales office (“Regional Developer
Sales Office” or “Sales Office”) within the Development Area. We will not approve or disapprove the location
of the Sales Office. You must open your Regional Developer Business within 45 days after you receive your initial training from
us, or 90 days after signing your Regional Developer Agreement, whichever occurs first.

 

		3.	EXCLUSIVITY.

 

3.1          Territorial
Rights. Except as provided in Section 3.2, as long as this Agreement is in effect, and you are in compliance with this Agreement,
and meet the Minimum Development Obligation set forth in this Agreement, then we and our affiliates will not operate, establish
or grant in your Development Area another Regional Developer franchise offering Franchises.

 

3.2          Rights
Maintained by Company. We (and any affiliates that we might have from time to time) shall at all times have the right to engage
in any activities we deem appropriate that are not expressly prohibited by this Agreement, whenever and wherever we desire, including,
but not limited to:

 

(a)          establish
and operate Franchises and Regional Developer Businesses, and granting right to other persons to establish and operate Franchises
or Regional Developer Businesses, on any terms and conditions we deem appropriate and at any locations other than within your Development
Area;

 

The Joint RD FDD – Exhibit C – RD Agreement

    	2

    	 

    

 

(b)          establish
and operate Franchises and/or grant other persons the right to establish and operate Franchises during the initial Term, to the
extent that such additional Franchises exceed the total number of franchises you are authorized to development within your Development
Area as set forth in Exhibit 1, and you decline to purchase the right to develop such additional Franchises.

 

(c)          acquire
the assets or ownership interest of one or more businesses providing products and services similar to those provided at Franchises,
and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses
(or the franchisees or licensees of these businesses) are located or operating, including within your Development Area; and

 

(d)          be
acquired (regardless of the form of transaction) by a business providing products and services similar to those provided at Franchises,
or by another business, even if such business operates, franchises and/or licenses competitive businesses within your Development
Area.

 

		4.	TERM.

 

The term of this Agreement
(the “Term”) shall be for a period of ten (10) years commencing on the Effective Date, unless sooner terminated in
accordance with the provisions of Section 13. Regional Developer shall have the right to extend the Term for an additional period
of ten (10) years if (i) Regional Developer has substantially complied with the Minimum Development Obligation and all of the other
terms of this Agreement during the Term; (ii) Regional Developer and all of its owners and their spouses sign our general release
form; (iii) we and Regional Developer mutually agree on a new minimum development obligation for the Development Area for the extension
period; and (iv) Regional Developer has paid a renewal fee equal to twenty-five percent (25%) of the original Development Fee set
forth in Paragraph 7. Under the general release, Regional Developer and its owners and their spouses will waive any and all claims
against us, our affiliates, and our and their owners, officers, directors, employees, agents, successors and assigns. If Regional
Developer wishes to extend the Term, Regional Developer must notify us in writing no more than one hundred eighty (180) days and
no less than ninety (90) days before the Term would otherwise expire.

 

Notwithstanding the
foregoing, any time after three (3) full years from the Effective Date of this Agreement, Company has the option of repurchasing
the Development Area and all of your Regional Developer rights associated with this Agreement for any opened and unopened Franchises
within your Development Area. The formula for repurchasing the Development Area and these rights will be as follows:

 

(a)          $29,000
for each Franchise that is opened under to this Agreement; plus

 

(b)          $7,250
for each Franchise that is unopened under this Agreement.

 

The total number of
Franchises for which Regional Developer has acquired the Development Rights to open under this Agreement is set forth in Exhibit
1. Notwithstanding the foregoing, any Franchises that were opened in Regional Developer’s Development Area prior to execution
of this Agreement will be transferred to Company at no cost to Company if Company exercises its repurchase option.

 

Company must notify
Regional Developer in writing of Company’s intent to exercise the option at least thirty (30) days prior to the date such
option shall take effect. Unless the parties agree otherwise, the closing on this repurchase option shall occur within thirty (30)
days of Company’s written notice of intent to exercise the repurchase option. Company and Regional Developer agree to execute
and deliver any and all documents or instruments required to effectuate the repurchase by the Company.

 

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		5.	ADDITIONAL OBLIGATIONS OF COMPANY AND REGIONAL DEVELOPER.

 

5.1          Regional
Developer Training. Within forty-five days (45) days after the Effective Date, but no later than thirty (30) days before you open
your Regional Developer franchise for business, we or our designee will provide up to three (3) days of training to Regional Director
on the operation of a Regional Developer Business. This training program may include classroom training and/or hands-on training
and will be conducted at our corporate headquarters in Scottsdale, Arizona, and/or at any other location(s) we designate. Regional
Developer must complete the initial training to our satisfaction and participate in all other activities we require before soliciting
Franchisees in the Development Area. Although we provide this training at no additional cost to Regional Developer, Regional Developer
must pay all travel and living expenses which it and its attendees incur.

 

If we determine that
Regional Developer cannot complete initial training to our satisfaction, we may, at our option, either (1) require Regional Developer
to attend additional training at Regional Developer’s expense (for which we may charge reasonable fees), or (2) terminate
this Agreement.

 

Regional Developer
shall participate in periodic webinars and sales calls scheduled by us for Regional Developer franchises, and attend a national
business meeting or convention of up to three days each year. We may also require Regional Developer to attend up to two (2) additional
or refresher training courses each year at our corporate offices, or another location we designate. We may charge reasonable fees
for these courses, conventions, webinars, sales calls, and programs. Regional Developer is responsible for all travel and living
expenses.

 

5.2          Regional
Developer Manual.

 

(a)          We
shall loan to Regional Developer one (1) copy of our Regional Developer manual (the “Manual for RDs”) and one (1) copy
of our Operations Manual for Location Franchises (“Manual for Locations”) (collectively referred to as the “Manuals”).
Regional Developer shall conduct all business activities in strict accordance with our standard operational methods and procedures
as prescribed from time to time in the Manual for RDs. As used in the Agreement, the term “Manuals” shall be deemed
to include the Manuals so delivered to Regional Developer, all amendments to the Manuals, and all supplemental bulletins, notices
and memoranda which prescribe standard methods or techniques of operation, and which we may from time to time deliver to Regional
Developer.

 

(b)          We
shall have the right to modify or supplement the Manuals. Such modifications and supplements shall be effective and binding on
Regional Developer fifteen (15) days after notice thereof is mailed or otherwise delivered to Regional Developer. Regional Developer
acknowledges and agrees that modifications of and supplements to the Manuals may obligate Regional Developer to invest additional
capital or incur higher operating costs.

 

(c)          The
Manuals are our property and may not be duplicated, copied, disclosed or disseminated in whole or in part in any manner except
with our express prior written consent. Regional Developer shall maintain the confidentiality of the Manuals. Upon the termination
of this Agreement, Regional Developer shall return to us all copies of the Manuals in its possession or control. If Regional Developer’s
copy of the Manuals is lost, destroyed or significantly damaged, Regional Developer agrees to obtain a replacement copy at our
then applicable charge.

 

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5.3           General
Guidance. We will provide guidance to Regional Developer in the Manuals and other bulletins or other written materials, by electronic
media, and/or by telephone consultation. If Regional Developer requests and we agree to provide additional or special guidance,
assistance or training, Regional Developer must pay our then applicable charges, including our personnel’s per diem charges
and any travel and living expenses.

 

5.4           Franchise
Registration and Disclosure. Neither Regional Developer nor any representative of Regional Developer shall solicit prospective
Franchisees of Franchises until we have registered our current Franchise Disclosure Document in applicable jurisdictions in the
Development Area and have provided Regional Developer with the requisite documents, or at any time when we notify Regional Developer
that our registration is not then in effect or our documents are not then in compliance with applicable law. If Regional Developer’s
activities pursuant to this Agreement require the preparation, amendment, registration, or filing of information or any disclosure
or other documents, then all requisite disclosure documents, ancillary documents, and registration applications shall be prepared
and filed by us or our designee, and registration secured, before Regional Developer may solicit prospective Franchisees for Franchises.
Costs of such registration applicable to Regional Developer shall be borne by Regional Developer. In particular, Regional Developer
shall:

 

(a)           prepare
and forward to us verified financial statements of Regional Developer in such form and for such periods as shall be designated
by us, including audited financial statements, if necessary and appropriate to comply with applicable legal disclosure, filing
or other legal requirements;

 

(b)           promptly
provide all information reasonably required by us to prepare all requisite disclosure documents and ancillary documents for the
offering of franchises throughout the Development Area; and

 

(c)           execute
all documents required by us for the purpose of registering Regional Developer and us to offer franchises throughout the Development
Area.

 

Regional Developer
agrees to review all information pertaining to Regional Developer prepared to comply with legal requirements for selling franchises
in the Development Area and verify its accuracy if so requested by us. Regional Developer acknowledges that we and our affiliates
and designees shall not be liable to Regional Developer for any errors, omissions or delays which occur in the preparation of such
materials.

 

5.5           Investigation
and Qualification of Prospective Franchisees.

 

(a)           Each
Franchise opened by a Franchisee pursuant to this Agreement shall be the subject of a separate Franchise Agreement with us, upon
our then current form. Regional Developer shall have no right to modify or offer to modify any Franchise Agreement or other contract.

 

(b)           If
we shall approve a Franchisee and a prospective franchise location, Regional Developer shall transmit to such Franchisee for execution
copies of our then-current Franchise Agreement pertaining to the approved site and providing for a protected territory surrounding
said Franchise, as determined by us.

 

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(c)           Regional
Developer shall investigate the qualifications of each prospective Franchisee and the suitability of each prospective franchise
location in the Development Area in accordance with our standards, policies and procedures relating to qualification of Franchisees
then in effect, and shall obtain all information required of prospective Franchisees by us.

 

(d)           After
Regional Developer is satisfied that a prospective Franchisee meets the standards established by us, Regional Developer may recommend
to us the approval of such prospective Franchisee. Regional Developer shall then furnish to us all information relating to the
prospective Franchisee which shall be required by us in the form and manner customarily required by us.

 

(e)           We
may thereafter conduct or obtain such credit reports and background checks on prospective franchisees as we deem necessary or convenient.
We may then approve or disapprove a prospective franchisee for any reason and may seek further information with respect to the
prospective Franchisee. Regional Developer shall cooperate with us in any further investigation of the prospective Franchisee.
If we shall reject a prospective Franchisee, we shall provide Regional Developer with a written explanation of the reasons therefor.

 

(f)            Regional
Developer shall deliver to us a copy of all correspondence with Franchisees which is material to the franchise relationship, concurrently
with its being sent or received by Regional Developer.

 

5.6           Training
and Support. Regional Developer agrees to implement any training programs developed by us for Franchises and to provide such assistance
and services as we shall reasonably request and require from time to time in connection with the construction, equipping and opening
of Franchises within the Development Area, the sourcing of equipment, fixtures, furnishings, inventory and supplies for such Franchises,
the advertising and promotion of such Franchises, and the supervision of the use, and compliance with our quality control standards
in the use of the Marks at such Franchises. All services and assistance provided to Franchisees in connection with the operation
of Franchises located in the Development Area will be provided by Regional Developer and such obligations of Regional Developer
will not be transferred, delegated or subcontracted to any other person.

 

5.7           Inspection
of Franchises and Operations. Regional Developer shall conduct inspections of all of the Franchises in the Development Area, and
of its operations and the review of the operations of all Franchises in the Development Area, in accordance with the standards
from time to time established by us, upon such schedules and according to such procedures as shall be agreed upon by us and Regional
Developer, acting in good faith, but, in any event, at least once during each calendar quarter. Regional Developer shall provide
reports to us with respect to the findings of such inspections, in such form and at such time as we shall require.

 

We reserve the right
to conduct periodic inspections of your Regional Developer Business to ensure that you are in compliance with this Agreement, the
Manual for RDs, standards, and any of our other written directives to you.

 

5.8           Marketing
and Promotion. Regional Developer shall participate in all promotion and marketing activities required by us of our Regional Developers,
as required in the Franchise Agreements, or otherwise.

 

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6.             OPERATING
STANDARDS.

 

6.1           Standard
of Service. Regional Developer shall at all times give prompt, courteous and efficient service to Franchises in the Development
Area. Regional Developer shall, in all dealings with Franchisees, prospective Franchisees and the public, adhere to the highest
standards of honesty, integrity, fair dealings and ethical conduct.

 

6.2           Compliance
with Laws and Good Business Practices. Regional Developer shall secure and maintain in force all required licenses, permits and
certificates relating to Regional Developer’s activities under this Agreement and operate in full compliance with all applicable
laws, ordinances and regulations. Regional Developer acknowledges being advised that many jurisdictions have enacted laws concerning
the advertising, sale, renewal and termination of, and continuing relationship between parties to a franchise agreement, including,
without limitation, laws concerning disclosure requirements. Regional Developer agrees promptly to become aware of and to comply
with all such laws and legal requirements in force in the Development Area and to utilize only disclosure documents that we have
approved for use in the applicable jurisdiction.

 

6.3           Accuracy
of Information. Before it solicits any prospective franchisee, Regional Developer shall each time take reasonable steps to confirm
that the information contained in any written materials, agreements and other documents related to the offer or sale of franchises
is true, correct and not misleading at the time of such offer or sale and that the offer or sale of such franchise will not at
that time be contrary to or in violation of any applicable state law related to the registration of the franchise offering. We
shall provide Regional Developer with any changes to our disclosure documents and other agreements on a timely basis and, upon
request, provide Regional Developer with confirmation that the information contained in any written materials, agreements or documents
being used by Regional Developer is true, correct and not misleading, except for information specifically relating to disclosures
regarding Regional Developer. If Regional Developer notifies us of an error in any information in our documents, we shall have
a reasonable period of time to attempt to correct any deficiencies, misrepresentations or omissions in such information.

 

6.4           Notification
of Litigation. Regional Developer shall notify us in writing within five (5) days after the commencement of any action, suit, arbitration,
proceeding, or investigation, or the issuance of any order, writ, injunction, award and decree, by any court agency or other governmental
instrumentality, which names Regional Developer or any of its Owners or otherwise concerns the operation or financial condition
of Regional Developer, the Regional Developer Business or any Franchisee.

 

6.5           Insurance.
Regional Developer shall at all times during the term of this Agreement maintain in force, at Regional Developer’s sole expense,
insurance written on an occurrence basis for the Regional Developer Business of the types, in the amounts and with such terms and
conditions as we may from time to time prescribe in the Regional Developer Manual or otherwise. All of the required insurance policies
shall name us and affiliates designated by use as additional insured, contain a waiver of the insurance company’s right of
subrogation against us and the designated affiliates, and provide that we will receive thirty (30) days’ prior written notice
of termination, expiration, cancellation or modification of any such policy. You are responsible for any and all claims, losses
or damages, including to third persons, originating from, in connection with, or caused by your failure to name us as an additional
insured on each insurance policy. You agree to defend, indemnify and hold us harmless of, from, and with respect to any such claims,
loss or damage arising out of your failure to name us as additional insured, which indemnity shall survive the termination or expiration
and non-renewal of this Agreement.

 

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Notwithstanding the
existence of such insurance, you are and will be responsible for all loss or damage and contractual liability to third persons
originating from or in connection with the operation of the Regional Developer franchise, and for all claims or demands for damages
to property or for injury, illness or death of persons directly or indirectly resulting therefrom; and you agree to defend, indemnify
and hold us harmless of, from, and with respect to any such claims, loss or damage, which indemnity shall survive the termination
or expiration and non-renewal of this Agreement. In addition to the requirements of the foregoing paragraphs of this Paragraph
6.5, you must maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in
connection with your lease or purchase of any premises used to operate your Regional Developer franchise.

 

Your obligation to maintain insurance coverage
as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf,
nor will our maintenance of that insurance relieve you of any obligations under this Agreement.

 

If you fail to pay
the premiums for insurance required to operate your franchise, we may obtain insurance for you and you will be required to reimburse
us within ten (10) days of receipt of a demand for reimbursement from us. We will have the right to debit your account the amounts
owed to us for such premiums if you fail to pay us within ten (10) days of our request for reimbursement.

 

6.6           Proof
of Insurance Coverage. Regional Developer will provide proof of insurance to us before beginning operations of its Regional Developer
Business. This proof will show that the insurer has been authorized to inform us in the event any policies lapse or are cancelled
or modified. We have the right to change the types, amount and terms of insurance that Regional Developer is required to maintain
by giving Regional Developer prior reasonable notice. Noncompliance with these insurance provisions shall be deemed a material
breach of this Agreement, and in the event of any lapse in insurance coverage, we shall have the right, in addition to all other
remedies, to demand that Regional Developer cease operations of its Regional Developer Business until coverage is reinstated or,
in the alternative, to pay any delinquencies in premium payments and charge the same back to Regional Developer.

 

6.7           Advertising
Requirement and Cooperatives. You must meet the minimum advertising requirement we establish for your Regional Developer Business
(“Minimum Advertisement Requirement”). We will establish the Minimum Advertising Requirement at the time you sign this
Agreement. You may be required to provide receipts to show you are meeting this requirement. We reserve the right to increase the
Minimum Advertisement Requirement for your Regional Developer Business if we determine that it is necessary for you to meet your
Minimum Development Obligation.

 

If one is created,
you are required to join and participate in the Advertising Cooperative (“Co-op”), which is an association of Regional
Developer whose franchise Franchises are located with your Area of Dominant Influence (“ADI”). An ADI is a geographic
market designation that defines a broadcast media market, consisting of all counties in which the home market stations receive
a preponderance of viewing. One function of the Co-op is to establish a local advertising pool, of which the funds must be used
for Franchise advertising only and for the mutual benefit of each Co-op member. Regional Developer must contribute to the pool
in accordance with the rules and regulations of the Co-op, as determined by its members. Amounts contributed to the advertising
pool by a Regional Developer may be considered as spent for local advertising, and therefore toward the minimum local advertising
requirement.

 

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6.8           Approval
of Advertising. Prior to their use by Regional Developer, samples of all advertising and promotional materials not prepared or
previously approved by us shall be submitted to us for approval, which approval shall not be unreasonably withheld. Regional Developer
shall not use any advertising or promotional materials that we have not approved or have disapproved. Regional Developer acknowledges
and understands that certain states require the filing of franchise sales advertising materials with the appropriate state agency
prior to dissemination. Regional Developer agrees fully and timely to comply with such filing requirements at Regional Developer’s
own expense unless such advertising has been previously filed with the state by us. We may charge Regional Developer for the costs
incurred by us in printing large quantities of advertising and marketing materials supplied by us to Regional Developer at Regional
Developer’s request.

 

6.9           Websites.
As used in this Agreement, the term “Website” means an interactive electronic document contained in a network of computers
linked by communications software that refers to the Franchise, Locations, franchises for Franchises or the Marks. The term “Website”
includes, but is not limited to, Internet and World Wide Web pages. In connection with any Website, Regional Developer agrees to
the following:

 

(a)           Regional
Developer shall not establish a separate Website without our prior written consent. We shall have the right, but not the obligation,
to designate one or more web page(s) to describe Regional Developer, such web pages(s) to be located within our Website; and

 

(b)           If
we approve, in writing, a separate Website for Regional Developer, then each of the following provisions shall apply:

 

(1)         Regional
Developer shall not establish or use the Website without our prior written approval.

 

(2)         Before
establishing the Website, Regional Developer shall submit to us, for our prior written approval, a sample of the proposed Website
domain name, format, visible content (including, but not limited to, proposed screen shots), and non-visible content (including,
but not limited to, meta tags) in the form and manner we may reasonably require, and Regional Developer shall not use or modify
such Websites without our prior written approval as to such proposed use or modification.

 

(3)         In
addition to any other applicable requirements, Regional Developer shall comply with our standards and specifications for Websites
as we prescribe from time to time in the Manuals or otherwise in writing.

 

(4)         If
we require, Regional Developer shall establish such hyperlinks to our Website and others we may request in writing.

 

We may revoke our approval at any time,
in writing, and require that Regional Developer discontinue use of a separate Website.

 

6.10         Accounting,
Bookkeeping and Records. Regional Developer shall maintain at its business premises in the Development Area all original invoices,
receipts, checks, contracts, licenses, acknowledgement of receipt forms, and bookkeeping and business records we require from time
to time. Regional Developer shall furnish to us, within one hundred twenty (120) days after the end of Regional Developer’s
fiscal year, a balance sheet and profit and loss statement (audited by a CPA, if requested by us) for Regional Developer’s
Business for such year (or a monthly or quarterly statement if required by us, in which case such statements also shall reflect
year-to-date information). In addition upon our request, within ten (10) days after such returns are filed, exact copies of federal
and state income, sales and any other tax returns and such other forms, records, books and other information as we periodically
require regarding Regional Developer’s Business, shall be furnished to us. Regional Developer shall maintain all records
and report of the business conducted pursuant to this Agreement for at least two (2) years after the date of termination or expiration
of this Agreement.

 

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6.11         Reports.
Regional Developer shall, as often as required by us, deliver to us a written report of its Regional Developer Business activities
in such form and detail as we may from time to time specify, including information about efforts to solicit prospective Franchisees,
the status of pending real estate transactions and the status of Franchises.

 

6.12         Computer
Systems. Regional Developer agrees to use in the development and operation of the Regional Developer’s Business the computer
systems and operating software (“Computer System”) that we specify from time to time. You acknowledge that we may modify
such specifications and the components of the Computer System from time to time. As part of the Computer System, we may require
you to obtain specified computer hardware and/or software, including without limitation a license to use proprietary software developed
by us or others. Our modification of such specifications for the components of the Computer System may require you to incur costs
to purchase, lease and/or obtain by license new or modified computer hardware and/or software, and to obtain service and support
for the Computer System during the term of this Agreement. You acknowledge that we cannot estimate the future costs of the Computer
System (or additions or modifications thereto), and that the cost to you of obtaining the Computer System (or additions or modifications
thereto), including software, may not be fully amortizable over the remaining term of this Agreement. Nonetheless, you agree to
incur such costs in connection with obtaining the computer hardware and software comprising the Computer System (or additions or
modifications thereto). Within sixty (60) days after you receive notice from us, you agree to obtain the components of the Computer
System that we designate and require. You further acknowledge and agree that we and our affiliates have the right to charge a reasonable
systems fee for software or systems installation services; modifications and enhancements specifically made for us or our affiliates
that are licensed to you; and other maintenance and support Computer System-related services that we or our affiliates furnish
to you. You will have sole responsibility for: (1) the acquisition, operation, maintenance, and upgrading of your Computer System;
(2) the manner in which your Computer System interfaces with our computer system and those of third parties; and (3) any and all
consequences that may arise if your Computer System is not properly operated, maintained, and upgraded.

 

The Company will provide
to you its proprietary office management software (the “Company Software”), which you will be required to install onto
the Computer System and use in the operation of your Regional Developer Business. In addition, we may, at any time and from time
to time, contract with one or more software providers, business service providers, or other third parties (individually, a “Service
Provider”) to develop, license, or otherwise provide to or for the use and benefit of you and other Company franchises certain
software, software applications, and software maintenance and support services related to the Computer System that you must or
may use in accordance with our instructions with respect to your Computer System.

 

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6.14         Management
of Business. You must personally participate in the direct operation of your Regional Developer Business. If you do not personally
participate in the direct operation of your Regional Developer Business on a full-time basis, then you are obligated to have a
fully trained Manager operate the franchise. We believe that only a person with an equity interest can adequately ensure that our
standards of quality and competence are maintained. We required that you be directly involved in the day-to-day operations and
utilize your best efforts to promote and enhance the performance of the Franchised Business.

 

Any Manager you employ
at the launching of your franchise operations must complete the initial management-training course required by the Company. All
subsequent Managers must be trained fully according to our standards by either the franchise owner or the Company. However, the
Company may charge a fee for this additional training.

 

7.             DEVELOPMENT
FEE.

 

Regional Developer
shall pay to us a non-refundable “Development Fee” of ____________________________________________________ Dollars
($ _______________), payable upon execution of this Agreement. If we require Regional Developer to acquire an in-depth demographic
analysis of the Development Area, Regional Developer shall also purchase the demographic analysis from us or our designated supplier
for the then-applicable fee.

 

8.             PAYMENTS
TO REGIONAL DEVELOPER. 

 

8.1           Initial
Fee Commission and Conditions of Payment. During the term of this Agreement, Regional Developer shall be paid a flat fee commission,
as set forth in this Section, paid from the initial franchise fees paid by Franchisees and/or Regional Developer for the purchase
of Location franchises to be located within the Development Area (the “Initial Fee Commission”), subject to fulfillment
of the following conditions: (a) the Franchisee (or Regional Developer) executes a Franchise Agreement with us and an initial franchise
fee has been paid to and actually received by us (we shall not be deemed to have received any fees paid into escrow, if applicable,
until such fees actually have been remitted to us); and (b) Regional Developer has complied with all of its other obligations under
this Agreement with respect to such sale and has verified the same to us in writing in a form prescribed by us. The Initial Fee
Commission shall be an amount equal to Fourteen Thousand Five Hundred Dollars ($14,500) for each Franchise that is sold pursuant
to this Agreement minus any broker’s fees or sales commissions, if any, and will be payable to Regional Developer within
twenty (20) days after the conditions of this Section 8.1 have been fulfilled.

 

8.2           Commissions
on Royalty Fees. We shall pay to Regional Developer, on the day of the week, 3% of the royalty fees (which excludes advertising
and marketing fees) actually received by us from each Franchisee located in the Development Area during the applicable period pursuant
to their Franchise Agreement (“Royalty Fees”). Notwithstanding the foregoing, if Regional Developer has failed to conduct
the periodic inspections described in Section 5.9 and failed to perform in any material respect, with respect to one (1) or more
Franchisees located in the Development Area, the other services described in Section 5 to be provided to Franchisees located in
the Development Area during any applicable month, then Regional Developer shall not be entitled to receive commissions on Royalty
Fees with respect to such Franchisees for the period during which reports or services were not provided.

 

8.3           Commissions
After Termination. All payments under this Section 8 shall immediately and permanently cease after the expiration or termination
of this Agreement, although Regional Developer shall receive all amounts which have accrued to Regional Developer as of the effective
date of expiration or termination.

 

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8.4           Application
of Payments. Our payments to Regional Developer shall be based on amounts actually collected from Franchisees, not on payments
accrued, due or owning. In the event of termination of a Franchise Agreement for an Franchise within the Development Area, we shall
apply any payments received from a Franchisee to pay past due indebtedness of that Franchisee for Royalty Fees, advertising contributions,
purchases from us or our affiliates, interest or any other indebtedness on that Franchisee to us or our affiliates. To the extent
that such payments are applied to a Franchisee’s overdue Royalty Fee payments, Regional Developer shall be entitled to its
pro rata share of such payments, less its pro rata share of the costs of collection paid to third parties.

 

8.5           Setoffs.
Regional Developer shall not be allowed to set off amounts owed to use for fees or other amounts due under this Agreement against
any monies owed to Regional Developer by us, which right to set off is hereby expressly waived by Regional Developer. We shall
be allowed to set off against amounts owed to Regional Developer for commissions, Royalty Fees or other amounts due under this
Agreement any monies owed to us by Regional Developer.

 

9.             MARKS.

 

9.1           Ownership
and Goodwill of Marks. Regional Developer’s right to use the Marks is derived only from this Agreement and is limited to
Regional Developer’s operation of its Regional Developer Business. Regional Developer’s unauthorized use of the Marks
is a breach of this Agreement and infringes our rights in the Marks. Regional Developer acknowledges and agrees that Regional Developer’s
use of the Marks and any goodwill established by that use are for our exclusive benefit and that this Agreement does not confer
any goodwill or other interests in the Marks upon Regional Developer (other than the right to operate a Regional Developer Business
under this Agreement). All provisions of this Agreement relating to the Marks apply to any additional and substitute trademarks
and service marks we authorize Regional Developer to use.

 

9.2           Limitations
on Regional Developer’s Use of Marks. Regional Developer may not use any Mark: (1) as part of any corporate or legal business
name; (2) with any prefix, suffix or other modifying words, terms, designs, symbols other than logos we have licensed to Regional
Developer; (3) in selling any unauthorized services or products; (4) as part of any domain name, electronic address or search engine,
without our consent; or (5) in any other manner we have not expressly authorized in writing. Regional Developer may not use any
Mark in advertising the transfer, sale or other disposition of Regional Developer’s business under this Agreement or an ownership
interest in Regional Developer (if a corporation, partnership, limited liability company or another business entity holds the franchise
at any time during this Agreement’s term) without our prior written consent.

 

9.3           Notification
of Infringements and Claims. Regional Developer agrees to notify us immediately of any apparent infringement of or challenge to
Regional Developer’s use of any Mark, or of any person’s claim of any rights in any Mark, and not to communicate with
any person other than us and our attorneys and Regional Developer’s attorneys regarding any infringement, challenge or claim.
We may take action we deem appropriate (including no action) and control exclusively any litigation, U.S. Patent and Trademark
Office proceeding or other administrative proceeding arising from any infringement, challenge or claim or otherwise concerning
any Mark. Regional Developer agrees to sign any documents and take any actions that, in the opinion of our attorneys, are necessary
or advisable to protect and maintain our interests in any litigation or Patent and Trademark Office or other proceeding or otherwise
to protect and maintain our interests in the Marks.

 

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9.4           Discontinuance
of Use of Marks. If we believe at any time that it is advisable for us and/or Regional Developer to modify or discontinue using
any Mark and/or use one or more additional or substitute trademarks or service marks, Regional Developer agrees to comply with
our directions within a reasonable time after receiving noticed. We need not reimburse Regional Developer for Regional Developer’s
expenses in complying with these directions, for any loss of revenue due to any modified or discontinued Mark, or for Regional
Developer’s expenses of promoting a modified or substitute trademark or service mark.

 

9.5           Indemnification
For Use of Marks. We agree to indemnify and reimburse Regional Developer against and for all damages for which Regional Developer
is held liable in any trademark infringement proceeding arising out of Regional Developer’s authorized use of any Mark pursuant
to and in compliance with this Agreement, and for all costs Regional Developer reasonably incurs in the defense of any such claim
in which Regional Developer is named as a party, so long as Regional Developer has timely notified us of the claim, and have otherwise
complied with this Agreement. At our option, we may defend and control the defense of any proceeding relating to any Mark.

 

10.           CONFIDENTIAL
INFORMATION.

 

We possess (and may continue to develop
and acquire) certain confidential information relating to the development and operation of Franchises and Regional Developer Businesses
(the “Confidential Information”), which includes (without limitation):

 

(1)          site
selection criteria;

 

(2)          methods,
formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge and experience used in developing
and operating Franchises and Regional Developer Businesses;

 

(3)          marketing
research and promotional, marketing and advertising programs for Franchises and Regional Developer Businesses;

 

(4)          knowledge
of specifications for and suppliers or, and methods of ordering, certain operating assets and products that Franchises and Regional
Developer Businesses use;

 

(5)          knowledge
of the operating results and financial performance of Franchises and Regional Developer Businesses;

 

(6)          customer
communication and retention programs, along with data used or generated in connection with those programs; graphic designs and
related intellectual property;

 

(7)          information
generated by or used or developed in the operation of Franchises and Regional Developer Businesses, including customer names, addresses,
telephone numbers and related information; and

 

(8)          any
other information designated confidential or proprietary by us.

 

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Regional Developer
acknowledges and agrees that by entering into this Agreement, Regional Developer will not acquire any interest in Confidential
Information, other than the right to use certain Confidential Information in accordance with this Agreement, and that Regional
Developer’s use of any Confidential Information in any other business would constitute an unfair method of competition with
us and our franchisees. Regional Developer further acknowledges and agrees that the Confidential Information is proprietary, includes
our trade secrets, and is disclosed to Regional Developer only on the condition that Regional Developer agrees, and it does agree,
that Regional Developer:

 

(1)          will
not use any Confidential Information in any other business or capacity;

 

(2)          will
keep the Confidential Information absolutely confidential during and after this Agreement’s term;

 

(3)          will
not make unauthorized copies of any Confidential Information disclosure via electronic medium or in written or other tangible form;

 

(4)          will
adopt and implement all reasonable procedures that we periodically prescribe to prevent unauthorized use or disclosure of Confidential
Information, including, without limitation: (i) restricting its disclosure to Regional Developer’s personnel and Franchisees
needing to know such Confidential Information in order to develop and operate the Franchises; and (ii) requiring those having access
to Confidential Information to sign confidentiality and non-disclosure agreements. We have the right to regulate the form of agreement
that Regional Developer uses and to be a third party beneficiary of that agreement with independent enforcement rights; and

 

(5)          will
not sell, trade or otherwise profit in any way from the Confidential Information, except using methods approved by us.

 

All ideas, concepts,
techniques or materials relating to a Franchise or Regional Developer Business, whether or not protectable intellectual property
and whether created by or for Regional Developer or its employees, must be promptly disclosed to us and will be deemed to be our
sole and exclusive property and works made-for-hire for us. To the extent any item does not qualify as a “work made-for-hire”
for us, by this paragraph, Regional Developer assigns ownership of that item, and all related rights to that item, to us and agrees
to sign whatever assignment or other documents we request to evidence our ownership or to help us obtain intellectual property
rights in the item.

 

“Confidential
Information” does not include information, knowledge or know-how which is or becomes generally known in business consulting
industry or which Regional Developer knew from previous business experience before we provided it to Regional Developer (directly
or indirectly) or before Regional Developer attended our initial training program. If we include any matter in Confidential Information,
anyone who claims that it is not Confidential Information must prove that the exclusion in this paragraph is fulfilled.

 

11.           ASSIGNABILITY.

 

11.1         Assignability
by Company.

 

(a)           We
shall have the right, but not the obligation, to cause a subsidiary or affiliate of ours to perform any or all of our obligations
and exercise any or all of our rights under this Agreement and under any Franchise Agreement, and to require regional Developer
to perform any or all of its obligations hereunder, in favor or such subsidiary or affiliate, by delivery of written notice thereof
to Regional Developer.

 

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(b)          We
shall have the right to assign this Agreement, or any of our rights and privileges under this Agreement to any other person, firm
or corporation, other than a subsidiary or affiliate of ours, without Regional Developer’s prior consent, and we shall not
be liable for any obligations accruing under this Agreement after the effective date of such assignment; provided the assignee
shall expressly assume and agree to perform our obligations under this Agreement and is reasonably capable of performing them.

 

11.2         Assignments
by Regional Developer.

 

(a)           We
have entered into this Agreement in reliance upon and in consideration of the singular personal skills, character, aptitude, business
ability, financial capacity and qualifications of Regional Developer and the trust and confidence reposed in Regional Developer
or, in the case of a business entity Regional Developer, its owners (individually, an “Owner”). Therefore, neither
Regional Developer’s interest in this Agreement nor any of its rights or privileges hereunder shall be assigned or transferred,
voluntarily or involuntarily, in whole or in part, by operation of law or otherwise, in any manner, without our prior written approval.

 

(b)           Any
assignment or transfer without our approval is a breach of this Agreement and has no effect. In this Agreement, the term “transfer”
includes any voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition and includes the following
events:

 

(1)         transfer
of record or beneficial ownership of capital stock in Regional Developer (if Regional Developer is a corporation), a partnership
or membership interest (if Regional Developer is a partnership or limited liability company), or any other ownership interest or
right to receive all or a portion of Regional Developer’s profits or losses;

 

(2)         a
merger, consolidation or exchange of shares or other ownership interests, or issuance of additional ownership interest or securities
representing or potentially representing shares or other ownership interests, or a redemption of shares or other ownership interests;

 

(3)         any
sale or exchange of voting interests or securities convertible to voting interests, or any agreement granting the right to exercise
or control the exercise of the voting rights of any owner or to control Regional Developer’s operations or affairs;

 

(4)         transfer
of an interest in Regional Developer, this Agreement, or Regional Developer Business or its assets (or any right to receive all
or a portion of Regional Developer’s or the Regional Development Business’ profits or losses or any capital appreciation
relating to the Regional Development Business) in a divorce, insolvency or entity dissolution proceeding, or otherwise by operation
of law;

 

(5)         if
Regional Developer or an Owner (if Regional Developer is a business entity) dies, transfer of an interest in Regional Developer,
this Agreement, or the Regional Development Business or its assets (or any right to receive all or a portion of Regional Developer’s
or the Regional Development Business’ profits or losses or any capital appreciation relating to the Regional Development
business) by will, declaration or transfer in trust, or under the law of intestate succession; or

 

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(6)         pledge
of this Agreement (to someone other than us) or of an ownership interest in Regional Developer (if Regional Developer is a business
entity) as security, foreclosure upon the development area franchises, or Regional Developer’s transfer, surrender or loss
of the area development franchise possession, control or management.

 

11.3         Conditions
for Approval of Assignment or Transfer. We may impose any reasonable condition(s) to the granting of our consent to such assignments.
Without limiting the generality of the foregoing, the imposition by us of any or all of the following conditions to our consent
to any such assignment shall be deemed to be reasonable:

 

(a)            that
the assignee (or the principal officers, shareholders, directors or general partners of the assignee in the case of a business
entity assignee) demonstrates that it has the skill, qualifications and economic resources necessary, in our judgment, reasonably
exercised, to own and operate the Regional Developer Business;

 

(b)           that
Regional Developer has paid all amounts owed to us;

 

(c)           that
the assignee shall expressly assume in writing for our benefit all of the obligations of Regional Developer under this Agreement
and any other agreements proposed to be assigned to such assignee;

 

(d)           that
neither the assignee nor its owners or affiliates operates, has an ownership interest in or performs services for a Competitive
Business (defined in Section 12.2);

 

(e)           that
the assignee shall have completed (or agreed to complete) our training program;

 

(f)            that
the assignee signs our then current form of Regional Developer Agreement, the provisions of which may differ materially from any
and all of those contained in this Agreement, and the term of which shall be the remaining term of this Agreement;

 

(g)           that
as of the date of any such assignment, the assignor shall have strictly complied with all of its obligations to us, whether under
this Agreement or any other agreement, arrangement or understanding with us;

 

(h)           that
the assignee is not then in default of any of the obligation to us under any agreement between such assignee and us;

 

(i)            that
the assignor shall pay to us a transfer fee of Thirty Thousand Dollars ($30,000), except for transfers pursuant to Section 11.4
below;

 

(j)            that
the assignor and the assignor’s spouse (if any) shall sign a general release, in a form satisfactory to us, of any and all
claims against us and our affiliates and our and their respective shareholders, officers, directors, employees, representatives,
agents, successors and assigns; and

 

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(k)           that
assignor will not directly or indirectly at any time or in any manner identify himself, herself or itself or any business as a
current or former Franchise or as one of our Franchisees or Regional Developers, use any Mark, any colorable imitation of a Mark,
or other indicia of a Franchise or Regional Developer Business in any manner or for any purpose, or utilize for any purpose any
trade name, trademark, service mark or other commercial symbol that suggests or indicates a connection or association with us.

 

Regional Developer
shall not in any event have the right to pledge, encumber, charge, hypothecate or otherwise give any third party a security interest
in this Agreement in any manner whatsoever without our express prior written permission, which permission may be withheld for any
reason whatsoever in our sole subjective judgment.

 

11.4         Assignment
to Entity Principally Controlled By You. The Regional Developer franchise business and its assets and liabilities may be assigned
to a newly-formed corporation or other legal entity that conducts no business other than the operation of the franchise and in
which you and any of your principals own and control in the aggregate not less than ninety percent (90%) of the equity and voting
power of all outstanding capital stock or ownership interest, provided as follows:

 

(a)           that
the proposed transferee complies with the provisions of this Agreement; and

 

(b)           that
you are empowered to act for said corporation or other legal entity; and

 

(c)           that
you shall submit to us documentation that we may reasonably request to effectuate the transfer, including the approving and acknowledging
execution of this Agreement; and

 

(d)           that
you shall submit to us a true and complete list of the shareholders, members or partners, showing number of shares or interests
owned, and a list of the officers and directors if a corporation or managers if a limited liability company, or managing partners
if a partnership. We shall be promptly notified of any changes in said lists; and

 

(e)           that
all certificates of shares or interests issued by transferee at any time shall be endorsed thereon the appropriate legend to conform
with state law, referring to this Agreement by date and name of parties hereto and stating “Transfer to This Certificate
is Limited by the Terms and Conditions of a Regional Development Agreement dated ____________________;” and

 

(f)            that
a copy of this Agreement shall be given to every shareholder, member or partner; and

 

(g)           that
a copy of the organizational documents and any corporate resolutions and a Certificate of Good Standing will be furnished to us
at our reasonable request, and prompt notification in writing of any amendments thereto will be provided to us; and

 

(h)           that
the number of shares or interests issued or outstanding in the transferee will not be increased or decreased without prior written
notice to us, which notice will in its terms guarantee compliance with this Agreement. In addition, new shareholders, members of
partners must be approved by use and agree to be bound by this entire Agreement. Shareholders, members or partners may make a separate
agreement among them providing for purchase by the survivors amount them of the shares of any shareholders or interests of any
members or partners upon death, or other agreements affecting ownership or voting rights, so long as voting control and a majority
representation of the board of directors or members or partners remains with those individuals who initially applied for and were
approved as Franchisees under this Agreement. Shareholders, members or partners must notify us in writing of any such agreement
which affects control of the transferee.

 

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11.5         Death
or Disability.

 

(a)           Upon
the death or disability of Regional Developer or an Owner, the executor, administrator, conservator, guardian or other personal
representative must assign, sell, or transfer Regional Developer’s interest in this Agreement, the Regional Developer Business
and its assets, or the Owner’s ownership interest in Regional Developer, to a third party approved by us. That transfer (including,
without limitation, transfer by bequest or inheritance) must occur, subject to our rights, within a reasonable time, not to exceed
nine (9) months from the date of death or disability, and is subject to all of the terms and conditions in this Section 11. A failure
to transfer such interest within this time period is a breach of this Agreement. The term “disability” means a mental
or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent Regional Developer
from supervising the Development Area management and operation for ninety (90) or more consecutive days.

 

(b)           If,
upon the death or disability of Regional Developer or an Owner, a trained manager who we approve is not managing the day-to-day
operations, then the executor, administrator, conservator, guardian or other personal representative must, within a reasonable
time not to exceed thirty (30) days from the date of death or disability, appoint a manager that we must approve to operate the
Regional Developer Business. The manager must, at Regional Developer’s or the Owner’s estate’s expense, satisfactorily
complete the training we designate with the specified time period.

 

11.6         Company’s
Right of First Refusal. If Regional Developer at any time determines to sell or transfer an interest in this Agreement or the Regional
Developer Business, or if Owner determines to sell or transfer a controlling ownership interest in Regional Developer, then Regional
Developer or the Owner, as applicable (the “Seller”) must obtain from a responsible and fully disclosed buyer, and
send us a true and complete copy of a bona fide, executed written offer relating exclusively to an interest in Regional Developer
or this Agreement and the Regional Developer Business. The offer must include details of the payment terms of the proposed sale
and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the proposed purchase
price must be in a fixed dollar amount and without any contingent payments of purchase price (such as earn-out payments).

 

We may, by delivering
written notice to the Seller within fifteen (15) days after we receive both an exact copy of the offer and all other information
requested, elect to purchase the interest for the price and on the terms and conditions contained in the offer, provided that:
1) we may substitute cash for any form or payment proposed in the offer; (2) our credit will be deemed equal to the credit of any
proposed buyer; (3) the closing will be not less than thirty (30) days after notifying the Seller of our election to purchase or,
if later, the closing date proposed in the offer; and (4) we must receive, and the Seller agrees to make, all customary representations
and warranties, given by the seller of the assets of a business or ownership interests in a legal entity, as applicable, including,
without limitation, representations and warranties regarding ownership and condition of, and title to, assets and (if applicable)
ownership interests and validity of contracts and the liabilities, contingent on otherwise, relating to the assets or ownership
interests being purchased. If we exercise our right of first refusal, the Seller agrees that, for two (2) years beginning on the
closing date, the Seller and members of its immediate family will be bound by the non-competition covenant contained in Section
12.2 below.

 

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If we do not exercise
our right of first refusal, the Seller may complete the sale to the proposed buyer on the original offer’s terms, subject
to our approval of the transfer as provided above. If the Seller does not complete the sale to the proposed buyer within sixty
(60) days after we notify the Seller that we do not intend to exercise our right of first refusal, or if there is a material change
in the terms of the sale (which the Seller must let us know promptly), we will have an additional right of first refusal during
the thirty (30) day period following either the expiration of the sixty (60) day period or receipt of notice of the material change(s)
in the sale’s terms, either on the terms originally offered or the modified terms, at our option.

 

11.7         Ownership
Structure. Regional Developer represents and warrants that all persons holding direct or indirect, legal or beneficial ownership
interests in Regional Developer (collectively, the “Owners’”) are listed in Exhibit 3 and that its ownership
structure is as set forth on Exhibit 3. In consideration of, and as an inducement to, the execution of this Agreement, each Owner
of the Regional Developer and their respective spouses shall personally and unconditionally sign our form Guaranty and Acceptance
of Obligations (Exhibit 4), guarantying to us and our successors and assigns that the Regional Developer will punctually pay and
perform each and every undertaking, agreement and covenant set forth in the Agreement; and agreeing to be personally bound by,
and personally liable for the breach of, each and every provision in the Agreement. Regional Developer shall not change its ownership
structure without complying with all of the terms and conditions of this Section 11. Within ten (10) days of any change in Regional
Developer’s ownership structure, Regional Developer shall submit a revised Exhibit 3 to us showing the new ownership structure,
and any new Owners shall sign our form Guaranty and Acceptance of Obligations (Exhibit 4).

 

12.           NON-COMPETITION.

 

12.1         In
Term. During the term of this Agreement, neither Regional Developer, any of the Principals, nor any member of Regional Developer’s
or a Principal’s immediate family will have any direct or indirect interest (e.g., through a spouse) as a disclosed or beneficial
owner, investor, partner, director, officer, controlling shareholder, employee, consultant, representative or agent, or in any
other capacity, in a Competitive Business (defined below), whether located within or outside the Development Area, unless we shall
first consent thereto in writing.

 

12.2         Post-Term.
For a eighteen (18) month period following the assignment, expiration or termination of this Agreement, for any reason, neither
Regional Developer, any Owner, nor any member of Regional Developer’s or an Owner’s immediate family will have any
direct or indirect interest (e.g., through a spouse) as a disclosed or beneficial owner, investor, partner, director, officer,
employee, consultant, representative or agent, or in any other capacity, in any Competitive Business located or operating: (a)
within the Development Area; (b) within the development area of any of our other regional developers, (c) within twenty-five (25)
miles of any Franchise or Regional Developer franchise or in operation or development on the date of assignment, expiration or
termination; or (d) within any unsold development areas. The term “Competitive Business” means any business which derives
more than Fifty-Thousand Dollars ($50,000) of revenue per year from the performance of chiropractic or related services, or any
business which grants franchises or licenses to others to operate such a business, other than a Franchise operated under a franchise
agreement with us.

 

13.           TERMINATION.

 

13.1         Termination
by Company. We may terminate this Agreement, effective upon written notice of termination to Regional Developer, if:

 

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(a)           Regional
Developer or one of its Owners makes or attempts to make a transfer in violation of Section 11;

 

(b)           Regional
Developer fails to meet the Minimum Development Obligation for any Development Period;

 

(c)           Regional
Developer has made or makes a material misrepresentation or omission in acquiring the rights under this Agreement or in operating
the Regional Developer Business;

 

(d)           Regional
Developer does not satisfactorily complete initial training;

 

(e)           Regional
Developer is convicted by a trial court of, or pleads no contest to, a felony;

 

(f)            Regional
Developer fails to maintain the insurance we require from time to time;

 

(g)           Regional
Developer or an Owner engages in any dishonest, unethical or illegal conduct or any other conduct which, in our opinion, adversely
affects our reputation, the reputation or other Franchises or the goodwill associated with the Marks;

 

(h)           Regional
Developer knowingly makes any unauthorized use or disclosure of any part of the Manuals or any other Confidential Information;

 

(i)            Developer
(a) fails on three (3) or more separate occasions within any twenty-four (24) consecutive month period to submit when due reports
or other data, information or supporting records, pay when due any amounts due to us (or our affiliates), or otherwise comply with
this Agreement, whether or not Regional Developer corrects any of these failures after we deliver written notice to regional Developer;
or (b) fails on two (2) or more separate occasions within any twelve (12) consecutive month period to comply with the same obligations
under this Agreement, whether or not Regional Developer corrects either of the failures after we deliver written notice to Regional
Developer;

 

(j)            Regional
Developer makes an assignment for the benefit of creditors or admits in writing insolvency or inability to pay debts generally
as they become due; Regional Developer consents to the appointment of a receiver, trustee or liquidator of all or the substantial
part of the assets of the Regional Developer Business; or the assets of the Regional Developer Business are attached, seized, subjected
to a writ or distress warrant, or levied upon, unless the attachment, seizure, writ, warrant or levy is vacated within thirty (30)
days following the order’ entry;

 

(k)           Regional
Developer fails to comply with any other provision of this Agreement and does not correct the failure within thirty (30) days after
we deliver written notice of the failure to Regional Developer; or

 

(l)            Regional
Developer fails to pay any sums due to us and does not correct the failure within ten (10) days after we deliver written notice
of that failure to Regional Developer.

 

We have the right to terminate any other
agreement between us and Regional Developer due to a default by Regional Developer.

 

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13.2         Rights
and Obligations Upon Termination or Expiration. Upon the expiration of the Term, or upon the earlier termination of this Agreement,
Regional Developer shall have no further right to construct, equip, own, open or operate additional Franchises (except pursuant
to a Franchise Agreement between Regional Developer and us which is in full force and effect on the date of expiration or termination).
Upon expiration or termination of this Agreement, we may ourselves construct, equip, open, own or operate, or license others to
construct, equip, open, own or operate Franchises in the Development Area, except as provided in any Franchise Agreement executed
pursuant to this Agreement. When this Agreement expires or is terminated for any reason and except as required to perform Regional
Developer’s obligations under a valid Franchise Agreement with us, Regional Developer shall:

 

(a)           not
directly or indirectly at any time thereafter or in any manner: (a) identify itself or any business as a current or former regional
developer or ours; (b) use any Mark, any colorable imitation of a Mark, any trademark, service mark or commercial symbol that is
confusingly similar to any Mark or other indicia of an Franchise in any manner or for any purpose; or (c) use for any purpose any
trade name, trademark, service mark or other commercial symbol that indicates or suggests a connection or association with us;

 

(b)           take
the actions required to cancel all fictitious or assumed name or equivalent registrations relating to Regional Developer’s
use of any Mark;

 

(c)           deliver
to us within thirty (30) days all advertising, marketing and promotional material, forms and other materials containing any Mark
or otherwise identifying or relating to the Regional Developer Business or to an Franchise;

 

(d)           if
applicable, notify all search engines of the termination or expiration of Regional Developer’s right to use all domain names,
Websites and other search engines associated directly or indirectly with the Marks or Franchises and authorize those search engines
to transfer to us or our designee all rights to the domain names, Websites and search engines relating to the Marks or Franchises.
We have the absolute right and interest in and to all domain names, Websites and search engines associated with the Marks or Franchises,
and Regional Developer hereby authorizes us to direct all applicable parties to transfer Regional Developer’s domain names,
Websites and search engines to us or our designee if this Agreement expires or is terminated for any reason whatsoever. All parties
may accept this Agreement as conclusive of our right to such domain names, Websites and search engines and this Agreement will
constitute the authority from Regional Developer for all parties to transfer all such domain names, Websites and search engines
to us;

 

(e)           immediately
cease using any of our Confidential Information in any business or otherwise and return to us all copies of the Manuals and any
other confidential materials that we have loaned Regional Developer; and

 

(f)            give
us, within thirty (30) days after the expiration or termination of this Agreement, evidence satisfactory to us of Regional Developer’s
compliance with these obligations.

 

13.3         Termination
Fee. In the event Regional Developer terminates this Agreement or ceases to do business, or Company terminates this Agreement pursuant
to Paragraph 18.1 of this Agreement, the Regional Developer shall pay Company a termination fee equal to one-half of our highest
then-current development fee for regional developer franchises, plus our attorneys’ fees and costs incurred in connection
with the early termination.

 

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14.           Mediation
and ARBITRATION.

 

14.1         Mediation.
If a dispute arises under this Agreement, the parties agree to try to settle the dispute through good-faith participation in a
mediation conducted by a mediator who is acceptable to both parties before proceeding to arbitration. However, we will not be required
to proceed with mediation if we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided
above.

 

14.2         Arbitration.
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided above, all
controversies, disputes or claims arising between us, our affiliates, owners, officers, directors, agents and employees (in their
representative capacity) and you (and your Principal Owners and guarantors) arising out of or related to: (i) this Agreement or
any provision thereof or any related agreement (except for any lease or sublease with us or any of our affiliates); (ii) the relationship
of the parties hereto; (iii) the validity of this Agreement or any related agreement, or any provision thereof; or (iv) any specification,
standard or operating procedure relating to the establishment or operation of the Regional Developer franchise, shall be submitted
for arbitration to be administered by the office of the American Arbitration Association. Such arbitration proceedings shall be
conducted in Maricopa County, Arizona, and, except as otherwise provided in this Agreement, shall be conducted in accordance with
the commercial arbitration rules of the American Arbitration Association then in effect. The arbitrator shall have the right to
award or include in his award any relief which he or she deems proper in the circumstances, including without limitation, money
damages (with interest on unpaid amounts from date due), specific performance, injunctive relief, attorneys' fees and costs. The
award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement and judgment on the award
may be entered in any court of competent jurisdiction. Each party waives any right to contest the validity or enforceability of
such an award. The provisions of this Paragraph are intended to benefit and limit third party non-signatories and will continue
in full force and effect subsequent to and notwithstanding expiration or termination of this Agreement. The parties agree that
arbitration shall be conducted on an individual, not a class-wide basis, and that any such arbitration shall not be consolidated
with any other arbitration proceeding.

 

15.           GENERAL
CONDITIONS AND PROVISIONS.

 

15.1         Relationship
of Regional Developer to Company. It is expressly agreed that the parties intend by this Agreement to establish between us and
Regional Developer the relationship of franchisor and franchisee. Except as expressly provided herein, it is further agreed that
Regional Developer has no authority to create or assume in our name or on our behalf, any obligation, express or implied, or to
act or purport to act as agent or representative on our behalf for any purpose whatsoever. In no event shall either party be deemed
to be fiduciaries of the other. Neither we nor Regional Developer is the employer, employee, agent, partner or co-venturer of or
with the other, each being independent contractors. Regional Developer agrees that it will not hold himself out as the agent, employee,
partner or co-venturer of ours, or as having any of the aforesaid authority. All Employees hired by or working for Regional Developer
shall be the employees of Regional Developer and shall not, for any purpose, be deemed employees of us or subject to our control.

 

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15.2         Indemnification.
To the fullest extent permitted by law, Regional Developer agrees to indemnify, defend and hold harmless us, our affiliates, and
our and their respective shareholders, directors, officers, employees, agents, representatives, successors and assigns (the “Indemnified
Parties”) from and against, and to reimburse any one or more of the Indemnified Parties for any and all claims, obligations
and damages directly or indirectly arising out of: (1) the Regional Developer Business conducted by Regional Developer pursuant
to this Agreement, (2) Regional Developer’s breach of this Agreement, or (3) Regional Developer’s non-compliance or
alleged non-compliance with any law, ordinance, rule or regulation. For purposes of this indemnification, “claims”
include all obligations, damages (actual, consequential, punitive or otherwise) and costs that any Indemnified Party reasonably
incurs in defending any claim against it, including, without limitation, reasonable accountants’, arbitrators’, attorneys’
and expert witness’ fees, costs of investigation and proof of facts, court costs, travel and living expenses and other expenses
of litigation, arbitration or alternative dispute resolution, regardless of whether litigation or alternative dispute resolution
is commenced. Each Indemnified Party may defend and control the defense of any claim against it which is subject to this indemnification
at Regional Developer’s expense, and Regional Developer may not settle any claim or take any other remedial, corrective or
other actions relating to any claim without our consent. This indemnity will continue in full force and effect subsequent to and
notwithstanding this Agreement’s expiration or termination. An Indemnified Party need not seek recovery from an insurer or
other third party, or otherwise mitigate its losses and expenses, in order to maintain and recover fully a claim against Regional
Developer. Regional Developer agrees that a failure to pursue a recovery or mitigate a loss will not reduce or alter the amounts
that an Indemnified Party may recover from Regional Developer.

 

15.3         Waiver
and Delay. Except as otherwise expressly provided to the contrary, no waiver by us of any breach or series of breaches or defaults
in performance by the Regional Developer, and no failure, refusal or neglect of or by us to exercise any right, power or option
given to us under this Agreement or under any other agreement between us and Regional Developer, whether entered into before, after
or contemporaneously with the execution of this Agreement (and whether or not related to this Agreement) or to insist upon strict
compliance with or performance of the Regional Developer’s obligations under this Agreement or any other agreement between
us and Regional Developer, whether entered into before, after or contemporaneously with the execution of this Agreement (and whether
or not related to this Agreement), shall constitute a novation, or a waiver of the provisions of this Agreement with respect to
any subsequent breach thereof or a waiver of our right at any time thereafter to require exact and strict compliance with the provisions
thereof.

 

15.4         Survival
of Covenants. The covenants contained in this Agreement which, by their terms, require performance by the parties after the expiration
or termination of this Agreement or ancillary agreements, shall be enforceable notwithstanding said expiration or other termination
of this Agreement for any reason whatsoever.

 

15.5         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the legal representatives, successors and assigns
of us and Regional Developer.

 

15.6         Joint
and Several Liability. If either party consists of more than one person or entity, or a combination thereof, the obligations and
liabilities of each such person or entity to the other under this Agreement are joint and several.

 

15.7         Governing
Law. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. §§ 1051 et seq.)
and except for all issues relating to arbitrability or the enforcement or interpretation of the agreement to arbitrate set forth
in Section 14 that will be governed by the United States Arbitration Act (9 U.S.C. § 1 et seq.) and the federal common law
relating to arbitration, this Agreement and the Regional Developer franchise will be governed by the internal laws of the State
of Arizona (without reference to its choice of law and conflict of law rules), except that the provisions of any Arizona law relating
to the offer and sale of business opportunities or franchises or governing the relationship of a franchisor and its franchisees
will not apply unless their jurisdictional requirements are met independently without reference to this Paragraph. You agree that
we may institute any action against you arising out of or relating to this Agreement (which is not required to be arbitrated hereunder
or as to which arbitration is waived) in any state or federal court of general jurisdiction in Maricopa County, Arizona, and you
irrevocably submit to the jurisdiction of such courts and waive any objection you may have to either the jurisdiction or venue
of such court.

 

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15.8         Consent
to Jurisdiction. Subject to Section 14 and the provisions below, Regional Developer and its owners agree that all actions arising
under this Agreement or otherwise as a result of the relationship between Regional Developer and us must be commenced in the State
of Arizona, and in the state or federal court of general jurisdiction closest to where our principal business address then is located,
and Regional Developer (and its Owners) irrevocably submits to the jurisdiction of those courts and waives any objection Regional
Developer (or its owners) might have with either the jurisdiction of or venue in those courts. Nonetheless, Regional Developer
and any of its Owners agree that we may enforce this Agreement and any arbitration orders and awards in the courts of the state
or states in which Regional Developer or its Owners are domiciled.

 

15.9         Waiver
of Punitive Damages and Jury Trial. Except for Regional Developer’s obligation to indemnify us under Section 15.2 above and
except where authorized by federal statute, we and Regional Developer and its Owners waive to the fullest extent permitted by law
any right to or claim for any punitive or exemplary damages against the other and agree that, in the event of a dispute between
us and Regional Developer, the party making a claim will be limited to equitable relief and to recovery of any actual damages it
sustains. We and Regional Developer irrevocably waive trial by jury in any action, proceeding or counterclaim, whether at law or
in equity, brought by either party.

 

15.10       Limitation
of Claims. Any and all claims arising out of or relating to this Agreement or our relationship with Regional Developer, except
for claims for indemnification under Section 15.2 above, will be barred unless a judicial or arbitration proceeding is commenced
within one (1) year from the date on which the party asserting the claim knew or should have known of the facts giving rise to
the claims.

 

15.11       Entire
Agreement. This Agreement and the Exhibits incorporated in the Agreement contain all of the terms and conditions agreed upon by
the parties to this Agreement with reference to the subject matter of this Agreement. No other agreements, and all prior agreements,
understanding and representations are merged in this Agreement and superseded by this Agreement. Each party represents to the other
that there are no contemporaneous agreements or understandings between the parties relating to the subject matter of this Agreement
that are not contained in this Agreement. This Agreement cannot be modified or changed except by written instrument signed by all
of the parties to this Agreement, provided that we may modify or amend the Manuals at any time without notice to, or approval of,
Regional Developer or any other person. Nothing in this Agreement shall have the effect of disclaiming any of the information in
the Franchise Disclosure Document or its attachments or addenda.

 

15.12       Title
for Convenience. Article and Section titles used in this Agreement are for convenience only and shall not be deemed to affect the
meaning or construction of any of the terms, provisions, covenants or conditions of this Agreement.

 

15.13       Gender.
All terms used in any one number or gender shall extend to mean and include any other number and gender as the facts, context or
sense of this Agreement or any section or paragraph hereof may require.

 

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15.14       Severability.
Except as expressly provided to the contrary in this Agreement, each Section, paragraph, term and provision of this Agreement in
severable, and if, for any reason, any part thereof, to be invalid or contrary to or in conflict with any applicable present or
future law and regulation in a final, unappealable ruling issued by any court, agency or tribunal with competent jurisdiction,
that ruling will not impair the operation or, or otherwise affect, any other portions of this Agreement, which will continue to
have full force and effect and bind the parties. If any covenant which restricts competitive activity is deemed unenforceable by
virtue of its scope in terms of area, business activity prohibited, and/or length of time, but would be enforceable if modified,
we and Regional Developer agree that the covenant will be enforced to the fullest extent permissible under the laws and public
policies applied in the jurisdiction whose law determines the covenant’s validity. If any applicable and binding law or rule
of any jurisdiction requires more notice than this Agreement requires of this Agreement’s termination or of our refusal to
enter into a successor agreement, or if, under any applicable and binding law or rule of any jurisdiction, any provision of this
Agreement is invalid or unenforceable or unlawful, the notice and/or other action required by the law or rule will be substituted
for the comparable provisions of this Agreement, and we may modify the invalid or unenforceable provisions to the extent required
to be valid and enforceable or delete the unlawful provision in its entirety. Regional Developer agrees to be bound by any promise
or covenant imposing the maximum duty the law permits which is subsumed within any provision of this Agreement, as though it were
separately articulated in and made a part of this Agreement.

 

15.15       Fees
and Expenses. Should any party to this Agreement commence any action or proceeding for the purpose of enforcing, or preventing
the breach of, any provision of this Agreement, whether by arbitration, judicial or quasi-judicial action or otherwise, or for
damages for any alleged breach of any provision of this Agreement, or for a declaration of such party’s rights or obligations
under this Agreement, then the prevailing party shall be reimbursed by the losing party for all costs and expenses incurred in
connection therewith, including, but not limited to, reasonable attorneys’ fees for the services rendered to such prevailing
party.

 

15.16       Notices.
Except as otherwise expressly provided herein, all written notices and reports permitted or required to be delivered by the parties
pursuant to this Agreement shall be deemed so delivered at the time delivered by hand, one (1) business day after transmission
by mail, via registered or certified mail, return receipt requested; or one (1) business day after placement with Federal Express,
or other reputable air courier service, requesting delivery on the most expedited basis available, postage prepaid and addressed
as follows:

 

	If to company:	 	THE JOINT CORP.	 
	 	 	9383 East Bahia Dr., Ste. 100	 
	 	 	Scottsdale, AZ 85260	 
	 	 	 	 
	With a copy  to:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	If to Regional Developer:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

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    	25

    	 

    

 

	With a copy  to:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

Or to such other addresses
any such party may designate by ten (10) days’ advance written notice to the other party.

 

15.17       Time
of Essence. Time shall be of the essence for all purposes of this Agreement.

 

15.18       Lien
and Security Interest. To secure your performance under this Agreement and indebtedness for all sums due us or our affiliates,
we shall have a lien upon, and you hereby grant us a security interest in, the following collateral and any and all additions,
accessions, and substitutions to or for it and the proceeds from all of the same: (a) all inventory now owned or after-acquired
by you and the Regional Developer Business, including but not limited to all inventory and supplies transferred to or acquired
by you in connection with this Agreement; (b) all accounts of you and/or the Regional Developer Business now existing or subsequently
arising, together with all interest in you and/or the Regional Developer Business, now existing or subsequently arising, together
with all chattel paper, documents, and instruments relating to such accounts; (c) all contract rights of you and/or the Regional
Developer Business, now existing or subsequently arising; and (d) all general intangibles of you and/or the Regional Developer
Business, now owned or existing, or after-acquired or subsequently arising. You agree to execute such financing statements, instruments,
and other documents, in a form satisfactory to us, that we deem necessary so that we may establish and maintain a valid security
interest in and to these assets.

 

16.           SUBMISSION
OF AGREEMENT.

 

This Agreement shall not
be binding upon us unless and until it shall have been submitted to and signed by our Chief Executive, and the date of said signing
as set forth on the first page of this Agreement shall be the effective date of this Agreement.

 

17.           ACKNOWLEDGMENTS.

 

To induce us to sign this
Agreement and grant Regional Developer the Franchise, Regional Developer acknowledges:

 

(a)           That
Regional Developer has independently investigated the Regional Developer Business franchise opportunity and recognizes that, like
any other business, the nature of the Regional Developer Business may, and probably will, evolve and change over time.

 

(b)           That
an investment in an Regional Developer Business involves business risks.

 

(c)           That
Regional Developer’s business abilities and efforts are vital Regional Developer’s success.

 

(d)           That
performing Regional Developer’s obligations will require a high level of customer service and strict adherence to the System.

 

(e)           That
Regional Developer has not received or relied upon, and we expressly disclaim making any representation, warranty or guaranty,
express or implied, as to the revenues, profits or success of a Regional Developer Business or any Franchise.

 

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(f)            That
any information Regional developer has acquired from other Franchise Franchisees or regional developers regarding their sales,
profits or cash flows is not information obtained from us, and we make no representation about that information’s accuracy.

 

(g)           That
Regional Developer has no knowledge of any representations made about the Regional Developer franchise opportunity by us, our subsidiaries
or affiliates or any of their respective officers, directors, shareholders or agents that are contrary to the statements made in
our Franchise Disclosure Document or to the terms and conditions of this Agreement.

 

(h)           That
in all of their dealing with Regional Developer, our officers, directors, employees and agents act only in a representative, and
not in an individual capacity and that business dealings between Regional Developer and them as a result of this Agreement are
only between Regional Developer and us.

 

(i)            That
Regional Developer has represented to us, to induce us to enter into this Agreement, that all statements Regional Developer has
made and all materials Regional Developer has given to us in acquiring the franchise are accurate and complete and that Regional
Developer has made no misrepresentations or material omissions in obtaining the franchise.

 

(j)            That
Regional Developer has read this Agreement and our Franchise Disclosure Document and understands and accepts that the terms and
covenants in this Agreement are reasonably necessary for us to maintain our high standards of quality and service, as well as the
uniformity of those standards at each Regional Developer Business and Franchise, and to protect and preserve the goodwill of the
Marks.

 

IN WITNESS WHEREOF,
the parties to this Agreement have caused this Agreement to be executed as of the first date set forth above.

 

	 	COMPANY:
	 	 
	 	THE JOINT CORP.
	 	a Delaware corporation
	 	______________________________________
	 	 
	 	By:___________________________________
	 	 
	 	Its:___________________________________
	 	 
	 	REGIONAL DEVELOPER:
	 	_______________________________________
	 	_______________________________________
	 	 
	 	By:___________________________________
	 	 
	 	Its:___________________________________	 

 

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EXHIBIT 1

 

DEVELOPMENT AREA AND DEVELOPMENT RIGHTS

 

	The Development Area referred to in Recital D of this Agreement shall be the following geographic area:_________
	 
	 
	 
	 
	 
	 
	 

 

The
total Development Rights (total number of Franchises authorized for development within the Development Area) are:         
Franchises.

 

If
you purchase the right develop additional Franchises within your Development Area during the initial Term, the cost to purchase
such additional Franchises shall be the greater of $                            ,
or ____ percent (___%) of the then-current franchise fee for a Franchise, for each additional Franchise that you purchase. If you
do not purchase the right to develop additional Franchises, we will have the right, pursuant to Section 2.1(d) of the Agreement,
to develop such additional Franchises on our own, or to grant the development rights for such additional Franchises to others.

 

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EXHIBIT
2

 

MINIMUM
DEVELOPMENT OBLIGATION

 

devleopment
schedule

 

	 
	 
	 
	 
	 
	 
	 
	 

 

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EXHIBIT
3

 

OWNERSHIP STRUCTURE

 

	Owner Name and Address	 	Number of Shares	 	Percentage of

Ownership
	 	 	 	 	 
	 	 	_________	 	_________
	 	 	 	 	 
	 	 	 	 	
	 	 	 	 	 
	 	 	_________	 	_________
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	_________	 	_________
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	_________	 	_________
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	TOTAL	 	_________	 	100%

 

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    	30

    	 

    

 

EXHIBIT
4

 

OWNER'S GUARANTY AND ASSUMPTION OF
OBLIGATIONS

 

In consideration of,
and as an inducement to, the execution of the foregoing Regional Developer Agreement dated _______________, 20___ (“Agreement”)
by THE JOINT CORP., a Delaware corporation (“us”), and the Regional Developer (“Franchise Owner”), __________________________,
each of the undersigned owners of the Franchise Owner and their respective spouses (“you”, for purposes of this Guaranty
only), hereby personally and unconditionally (1) guarantees to us and our successors and assigns that the Franchise Owner
will punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and (2) agrees
to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, including without
limitation, monetary obligations, the obligations to take or refrain from taking certain actions and arbitration of disputes.

 

Each of you waives
(1) protest and notice of default, demand for payment or nonperformance of any obligations guaranteed by this Guaranty; (2) any
right you may have to require that an action be brought against Franchise Owner or any other person as a condition of your liability;
(3) all right to payment or reimbursement from, or subrogation against, the Franchise Owner which you may have arising out
of your guaranty of the Franchise Owner's obligations; and (4) any and all other notices and legal or equitable defenses to
which you may be entitled in your capacity as guarantor.

 

Each of you consents
and agrees that (1) your direct and immediate liability under this Guaranty shall be joint and several; (2) you will
make any payment or render any performance required under the Agreement on demand if Franchise Owner fails or refuses to do so
when required; (3) your liability will not be contingent or conditioned on our pursuit of any remedies against Franchise Owner
or any other person; (4) your liability will not be diminished, relieved or otherwise affected by any extension of time, credit
or other indulgence which we may from time to time grant to Franchise Owner or to any other person, including without limitation,
the acceptance of any partial payment or performance, or the compromise or release of any claims; and (5) this Guaranty will
continue and be irrevocable during the term of the Agreement and afterward for so long as the Franchise Owner has any obligations
under the Agreement.

 

If we are required
to enforce this Guaranty in a judicial or arbitration proceeding, and prevail in such proceeding, we will be entitled to reimbursement
of our costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorneys' assistants', arbitrators'
and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living
expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If we are required
to engage legal counsel in connection with any failure by you to comply with this Guaranty, you agree to reimburse us for any of
the above-listed costs and expenses incurred by us.

 

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    	31

    	 

    

 

This Guaranty is now executed as of the
Agreement Date. 

	 	 	 	 
	OWNER:	 	OWNER’S SPOUSE:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	OWNER:	 	OWNER’S SPOUSE:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	OWNER:	 	OWNER’S SPOUSE:	 
	 	 	 	 
	 	 	 	 

 

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    	32

    	 

    

 

EXHIBIT
5

 

STATE-SPECIFIC ADDENDA

 

TO REGIONAL DEVELOPER AGREEMENT

 

Addenda to RD Agreement 

    	 

    	 

    

 

CALIFORNIA ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.             California
Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination or non-renewal
of a franchise. If the franchise agreement contains a provision that is inconsistent with the law, the law will control.

 

2.             The
franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law
(11 U.S.C.A. Sec. 101 et seq.).

 

3.             The
franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may
not be enforceable under California law.

 

4.             The
franchise agreement requires binding arbitration. The arbitration will occur in Maricopa County, State of Arizona.

 

Prospective franchisees are encouraged
to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions
Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement
restricting venue to a forum outside the State of California.

 

5.             The
Agreement requires the application of laws of Arizona. This requirement may be unenforceable under California law.

 

6.             You
must sign a general release if you renew or transfer your franchise. California Corporations Code 31512 voids a waiver of your
rights under the Franchise Investment Law (California Corporations Code 31000 through 31516). Business and Professions Code 20010
voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043).

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed and delivered this California Addendum to the Regional Developer Agreement on the
same date as the Regional Developer Agreement was executed.

 

	 	 	THE JOINT CORP. 
	 	 	a Delaware corporation 

 

	 	 	By:	 

	 	 	Print Name:	

	 	 	Title:	 

 

	 	 	REGIONAL DEVELOPER

 

	 	 	By:	 

	 	 	Title:	 

 

California Addendum to RD Agreement 

    	 

    	 

    

 

 

 

 

HAWAII ADDENDUM TO REGIONAL
DEVELOPER AGREEMENT

 

1.          The
Regional Developer Agreements contain a provision requiring a general release as a condition of renewal and transfer of the franchise.
Such release will exclude claims arising under the Hawaii Franchise Investment Law.

 

2.          Any
provisions of the Regional Developer Agreement that relate to non-renewal, termination, and transfer are only applicable if they
are not inconsistent with the Hawaii Franchise Investment Law. Otherwise, the Hawaii Franchise Investment Law will control.

 

3.          The
Regional Developer Agreement permits us to terminate the Agreement on the bankruptcy of you and/or your affiliates. This Article
may not be enforceable under federal bankruptcy law. (11 U.S.C. § 101, et seq.).

 

4.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of the Hawaii Franchise Investment Law are met independently without reference to this Addendum.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this Hawaii Addendum to the Regional Developer Agreement on the same
date as the Regional Developer Agreement was executed.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

Hawaii Addendum to ® RD Agreement  

    	 

    	 

    

 

ILLINOIS ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Articles
3.2 and 14.5 each contain a provision requiring a general release as a condition of renewal and transfer of the franchise. Such
release will exclude claims arising under the Illinois Franchise Disclosure Act.

 

2.          Article
13 is supplemented by the addition of the following, which will be considered an integral part of the Agreement:

 

“If any of the
provisions of this Article 13 concerning termination are inconsistent with Section 19 of the Illinois Franchise Disclosure Act
of 1987, Illinois law will apply.”

 

3.          The
Illinois Franchise Disclosure Act will govern the Agreement with respect to Illinois Franchisees. The provisions of the Agreement
concerning governing law, jurisdiction, and venue will not constitute a waiver of any right conferred on you by the Illinois Franchise
Disclosure Act. Consistent with the foregoing, any provision in the Agreement which designates jurisdiction and venue in a forum
outside of Illinois is void with respect to any cause of action which is otherwise enforceable in Illinois.

 

4.          This
Agreement requires that it be governed by Arizona law. To the extent that such law conflicts with the Illinois Franchise Disclosure
Act, the Act will control.

 

5.          Although
the Agreement requires litigation to be instituted in a state or federal court in the county and state where our principal executive
offices are located, you must institute all litigation in a court of competent jurisdiction located in the State of Illinois, subject
to the arbitration provision of the Agreement.

 

6.          Nothing
in the Agreement will limit or prevent the enforcement of any cause of action otherwise enforceable in Illinois or arising under
the Illinois Franchise Disclosure Act of 1987, as amended.

 

7.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of the Illinois law applicable to the provision are met independently without reference to this Addendum.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this Illinois Addendum to the Regional Developer Agreement on the
same date as the Regional Developer Agreement was executed.

 

	THE JOINT CORP. 	 
	a Delaware corporation 	 
	 	 	 
	By:	 	 
	Print Name:	 	 
	Title:	 	 

 

REGIONAL DEVELOPER

 

	By:	 	 	By:	 

 

	Title:	 	 	Title:	 

 

Illinois Addendum to RD Agreement 

    	 

    	 

    

 

INDIANA ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Articles
3.2 and 14.5 each contain a provision requiring a general release as a condition of renewal and transfer of the franchise. Such
provision is inapplicable under the Indiana Deceptive Franchise Practices Law, IC 23-2-2.7 § 1(5).

 

2.          Under
Article 15.4, you will not be required to indemnify us for any liability imposed on us as a result of your reliance on or use of
procedures or products which were required by us, if such procedures were utilized by you in the manner required by us.

 

3.          Article
16.7 is amended to provide that arbitration between you and us will be conducted at a mutually agreed-on location.

 

4.          Article
16.8 is amended to provide that in the event of a conflict of law, the Indiana Franchise Disclosure Law, I.C. 23-2-2.5, and the
Indiana Deceptive Franchise Practices Law, I.C. 23-2-2.7, will prevail.

 

5.          Nothing
in the Agreement will abrogate or reduce any rights you have under Indiana law.

 

6.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2.5-1 to 23-2-2.5-51, and the Indiana Deceptive Franchise
Practices Act, Indiana Code §§ 23-2-2.7-1 to 23-2-2.7-10, are met independently without reference to this Addendum.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this Indiana Addendum to the Regional Developer Agreement on the same
date as the Regional Developer Agreement was executed.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

  

Indiana Addendum to RD Agreement  

    	 

    	 

    

 

MARYLAND ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

a.           Notwithstanding
anything to the contrary set forth in the Agreement, the following provisions will supersede and apply to all franchises offered
and sold in the State of Maryland:

 

b.           Any
provision in the Agreement that would require you, as part of the Agreement or as a condition of the sale, renewal or assignment
of the franchise, to assent to a release which would relieve any person from liability imposed under the provisions of the Maryland
Franchise Law is void if that the provision violates this law. The provision in the Franchise Agreement which provides for termination
upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.)

 

c.           Any
provision in the Agreement which operates to waive your right to file a lawsuit alleging a cause of action arising under the Maryland
Franchise Law in any court of competent jurisdiction in the State of Maryland is void if that the provision violates this law.
Claims arising under the Maryland Franchise Law may be brought in any court of competent jurisdiction in Maryland, within 3 years
after the grant of the franchise.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

Maryland Addendum to ® RD Agreement  

    	 

    	 

    

 

MINNESOTA ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Article
8 is amended to add the following:

 

“We will protect your right to use the Marks and/or indemnify
you from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the Marks.”

 

2.          Articles
3.2 and 14.5 each contain a provision requiring a general release as a condition of renewal and transfer of the franchise. Such
release will exclude claims arising under the Minnesota Franchise Law.

 

3.          Article
13.1 is amended to add the following:

 

With respect to franchises governed by
Minnesota law, we will comply with Minn. Stat. Sec. 80C. 14, Subds, 3, 4 and 5, which require, except in certain specified cases,
that a franchisee be given 90 days’ notice of termination (with 60 days to cure) and 180 days’ notice for nonrenewal
of the Regional Developer Agreement.

 

4.          Article
16.12 is amended as follows:

 

Pursuant to Minn. Stat. § 80C.17,
Subd. 5, the parties agree that no civil action pertaining to a violation of a franchise rule or statute can be commenced more
than three years after the cause of action accrues.

 

5.          Articles
16.7, 16.8, and 16.9 are each amended to add the following:

 

Minn. Stat. Sec. 80C.2 1 and Minn. Rule
2860.4400J prohibit us from requiring litigation or arbitration to be conducted outside Minnesota. In addition, nothing in the
Disclosure Document or Regional Developer Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes,
Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.

 

6.          Article
16.10 is amended to add the following:

 

Minn. Rule Part 2860.4400J prohibits us
from requiring you to waive your rights to a jury trial or waive your rights to any procedure, forum, or remedies provided for
by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.

 

7.          
Each provision of this Agreement will be effective only to the extent, with respect to such provision, that the jurisdictional
requirements of the Minnesota Franchises Law or the Rules and Regulations promulgated thereunder by the Minnesota Commissioner
of Commerce are met independently without reference to this Addendum to the Agreement.

  

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this Minnesota Addendum to the Regional Developer Agreement on the
same day as the Regional Developer Agreement was executed.

 

	THE JOINT CORP. 	 
	a Delaware corporation 	 
	By:	 	 
	Print Name:	 	 
	Title:	 	 
	 	 	 
	REGIONAL DEVELOPER	 
	 	 	 
	By:	 	 
	Title:	 	 

 

Minnesota Addendum to RD Agreement  

    	 

    	 

    

 

NEW YORK ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Article
14.1 is amended to add the following:

 

However, we will not
make any such transfer or assignment except to a person who, in our good faith judgment, is willing and able to assume our obligations
under this Agreement, and all rights enjoyed by you and any causes of action arising in its favor from the provisions of Article
33 of the General Business Law of the State of New York and the regulations issued thereunder will remain in force, it being the
intent of this proviso that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.

 

2.          Article
14.5 is amended to add the following:

 

However, all rights
enjoyed by you and any causes of action arising in its favor from the provisions of Article 33 of the General Business Law of the
State of New York and the regulations issued thereunder will remain in force, it being the intent of this proviso that the non-waiver
provisions of General Business Law Sections 687.4 and 687.5 be satisfied.

 

3.          Article
15.4 is amended to add the following:

 

However, you will not
be required to hold harmless or indemnify us for any claim arising out of a breach of this Agreement by us or any other civil wrong
of us.

 

4.          Article
16.13 is amended to add the following:

 

No amendment or modification
of any provision of this Agreement, however, will impose any new or different requirement which unreasonably increases your obligations
or places an excessive economic burden on your operations.

 

5.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of the General Business Law of the State of New York are met independently without reference to this Addendum.

 

IN WITNESS WHEREOF, the parties hereto have duly executed, sealed,
and delivered this New York Addendum to the Regional Developer Agreement on the same date as the Regional Developer Agreement was
executed.

 

	THE JOINT CORP. 	 
	a Delaware corporation 	 
	By:	 	 
	Print Name:	 	 
	Title:	 	 
	 	 	 
	REGIONAL DEVELOPER	 
	 	 	 
	By:	 	 
	Title:	 	 

 

New York Addendum to RD Agreement  

    	 

    	 

    

 

NORTH DAKOTA ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Articles
3.2 and 14.5 each contain a provision requiring a general release as a condition of renewal or transfer of the franchise. Such
release is subject to and will exclude claims arising under the North Dakota Franchise Investment Law.

 

2.          Article
16.7 will be amended to state that arbitration involving a franchise purchased in North Dakota must be held in a location mutually
agreed on prior to the arbitration, or if the parties cannot agree on a location, at a location to be determined by the arbitrator.

 

3.          Article
18.2 is amended to add that covenants not to compete on termination or expiration of an Regional Developer Agreement are generally
not enforceable in the State of North Dakota except in limited circumstances provided by North Dakota law.

 

4.          Article
16.9 will be amended to add that any claim or right arising under the North Dakota Franchise Investment Law may be brought in the
appropriate state or federal court in North Dakota, subject to the arbitration provision of the Agreement.

 

5.          Article
16.8 will be amended to state that, in the event of a conflict of law, to the extent required by the North Dakota Franchise Investment
Law, North Dakota law will prevail.

 

6.          Article
16.10 requires the franchisee to waive a trial by jury, as well as exemplary and punitive damages. These requirements are not enforceable
in North Dakota pursuant to Section 51-19-09 of the North Dakota Franchise Investment Law, and are therefore not part of the Regional
Developer Agreement.

 

7.          Article
16.12 requirement that the franchise consent to a limitation of claims period of one year is not consistent with North Dakota law.
The limitation of claims period under the Regional Developer Agreement shall therefore be governed by North Dakota law.

 

8.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of the North Dakota Franchise Investment Law, N.D. Cent. Code §§ 51-19-01 through 51-19-17, are met independently without
reference to this Addendum.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this North Dakota Addendum to the Regional Developer Agreement on
the same day as the Regional Developer Agreement was executed.

 

	THE JOINT CORP. 	 
	a Delaware corporation 	 
	By:	 	 
	Print Name:	 	 
	Title:	 	 
	 	 	 
	REGIONAL DEVELOPER	 
	 	 	 
	By:	 	 
	Title:	 	 

 

New Dakota Addendum to RD Agreement 

    	 

    	 

    

RHODE ISLAND ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          Articles
3.2 and 14.5 each contain a provision requiring a general release as a condition of renewal and transfer of the franchise. Such
release will exclude claims arising under the Rhode Island Franchise Investment Act.

 

2.          This
Agreement requires that it be governed by Arizona law. To the extent that such law conflicts with Rhode Island Franchise Investment
Act, it is void under Sec. 19-28.1-14.

 

3.          Article
16.9 of the Agreement will each be amended by the addition of the following, which will be considered an integral part of this
Agreement:

 

“§ 19-28.1-14
of the Rhode Island Franchise Investment Act provides that “A provision in an Regional Developer Agreement restricting jurisdiction
or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim
otherwise enforceable under this Act.”

 

4.          Each
provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements
of Rhode Island Franchise Investment Act, §§ 19- 28-1.1 through 19-28.1-34, are met independently without reference to
this Addendum.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed, sealed, and delivered this Rhode Island Addendum to the Regional Developer Agreement on
the same date as the Regional Developer Agreement was executed.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

Rhode Island Addendum to RD Agreement 

    	 

    	 

    

VIRGINIA ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

No addendum is required
in Virginia at this time.

 

IN WITNESS WHEREOF, the parties hereto
have duly executed, sealed, and delivered this Virginia Addendum to the Regional Developer Agreement on the same date as the Regional
Developer Agreement Washington Addendum to RD Agreement was executed.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

Washington Addendum to RD Agreement 

    	 

    	 

    

 

WASHINGTON ADDENDUM TO REGIONAL DEVELOPER
AGREEMENT

 

1.          The
state of Washington has a statute, RCW 19.100.180 which may supersede the Regional Developer Agreement in your relationship with
the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede
the Regional Developer Agreement in your relationship with the franchisor including the areas of termination and renewal of your
franchise.

 

2.          In
any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington,
or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.

 

3.          In
the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall
prevail.

 

4.          A
release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection
Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented
by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims
under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.

 

5.          Transfer
fees are collectable to the extent that they reflect the franchisor’s reasonable estimated or actual costs in effecting a
transfer.

 

6.          The
Department of Financial Institutions for the State of Washington requires that the payment of the Development Fee be deferred until
we have completed our initial obligations under Item 11 and you open for business.

 

IN WITNESS WHEREOF, the parties hereto have
duly executed, sealed, and delivered this Washington Addendum to the Regional Developer Agreement on the same date as the Regional
Developer Agreement was executed.

 

	 	THE JOINT CORP. 
	 	a Delaware corporation 
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 
	 	 	 
	 	REGIONAL DEVELOPER	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

Washington Addendum to RD Agreement 

    	 

    	 

    

 

EXHIBIT C

 

TABLE OF CONTENTS OF MANUALS

 

The Joint RD FDD – Exhibit C – Table of Contents
– RD Manual 

    	 

    	 

    

 

REGIONAL DEVELOPER OPERATIONS MANUAL

 

	Subject	 	Pages Devoted to Subject (approx.)
	 	 	 
	Welcome	 	1
	 	 	 
	Philosophy of RD	 	1
	 	 	 
	Corporate Contacts	 	1
	 	 	 
	Find and Market Leads	 	1
	 	 	 
	Present the Offer	 	1
	 	 	 
	Disclosing the Prospect	 	3
	 	 	 
	Finding a Location	 	3
	 	 	 
	Building a Clinic	 	6
	 	 	 
	Vendor Relations	 	2
	 	 	 
	Opening a Clinic	 	5
	 	 	 
	Marketing the Clinic	 	3
	 	 	 
	Daily Clinic Duties	 	6
	 	 	 
	Daily Clinic Reporting	 	1
	 	 	 
	Manual Review Checklist	 	1
	 	 	 
	Franchise Disclosure Document Overview	 	158
	 	 	 
	FTC Franchise Rules and Regulations	 	24
	 	 	 
	Franchise Rule Compliance	 	164
	 	 	 
	Total Pages (Approximate):  385

 

The Joint RD FDD – Exhibit C – Table of Contents
– RD Manual 

    	 

    	 

    

 

LOCATION FRANCHISE OPERATIONS MANUAL

 

	SECTION	 	# OF PAGES
	 	 	 
	INTRODUCTION TO THE MANUAL	 	 
	Purpose of this Manual	 	1
	Confidentiality Statement	 	1
	Acknowledgement of Receipt	 	1
	 	 	 
	INTRODUCTION TO YOUR FRANCHISE SYSTEM	 	 
	Welcome Letter	 	1
	Philosophy	 	1
	Who to Contact	 	1
	Overview of Services to Franchisees	 	1
	Overview of Your Responsibilities	 	2
	Support	 	1
	Compliance Policies	 	1
	Communication	 	1
	Core Business Review	 	3
	Fees	 	1
	 	 	 
	PRE-OPENING PROCEDURES	 	 
	Introduction	 	1
	Countdown to Opening	 	1
	Opening a Clinic From A to Z	 	9
	EIN	 	1
	Articles of Incorporation	 	2
	State Tax ID	 	1
	City License	 	1
	Government Posters	 	3
	Franchisee Training	 	1
	 	 	 
	Construction	 	 
	Introduction	 	8
	“As is” Drawings	 	1
	Finalized Space Plan	 	1
	Finalized Drawings	 	1
	Invitation to Bid	 	1
	Bid Form	 	6
	Finish Schedule	 	2

 

The Joint RD FDD – Exhibit C – Table of Contents
– RD Manual 

    	 

    	 

    

 

	Interior Paint Pallet	 	1
	General Notes for Qualifications	 	1
	Apply for Building Permit	 	1
	Constriction Punch List	 	4
	Signage	 	1
	Outdoor Banners	 	1
	Indoor Banners	 	1
	Window Decals	 	1
	Interior Furniture	 	1
	Art Package	 	1
	Flowers and Plants	 	1
	Front Counter Specs	 	9
	Reception Wall Specs	 	2
	Menu Board	 	1
	Mission Board	 	1
	Lighting	 	5
	Adjusting Tables	 	2
	Hardware/Software	 	1
	Computer Mount	 	1
	Ceiling	 	1
	Carpet and Flooring	 	1
	Storage	 	1
	Decorative Wall	 	1
	Reference Photos	 	3
	Inventory and Supplies	 	1
	 	 	 
	FRANCHISEE GUIDELINES	 	 
	Insurance	 	4
	Clinic Hours	 	2
	Sample P&L	 	1
	Adjusting Techniques	 	1
	Documentation Policy	 	1
	Music Guidelines	 	1
	Data	 	1
	Vendor Guide	 	2
	HIPPA	 	9
	Grand Opening Guidelines	 	2
	Hiring Process	 	17
	Sample Background Check	 	1
	Human Resource Compliance	 	3
	Employee Policies	 	2
	Employee Handbook	 	9

 

The Joint RD FDD – Exhibit C – Table of
Contents – RD Manual 

    	 

    	 

    

 

	DAILY OPERATING PROCEDURES	 	 
	Customer Service Standards	 	3
	Welcoming Patients	 	1
	Phone Calls	 	2
	Email	 	1
	Patient Plans	 	4
	Opening Duties	 	1
	Checking ARB	 	2
	Doctor Daily Duties	 	2
	Clinic Forms	 	17
	Methods of Payments	 	4
	Referral Program	 	2
	Benefits of Routine Care	 	1
	Dress Code	 	3
	Sales Approach	 	4
	Closing Duties	 	1
	 	 	 
	SOFTWARE	 	 
	Intro	 	1
	Support	 	1
	What is J4	 	1
	Getting Started	 	1
	Navigating the Dashboard	 	4
	New Patients	 	2
	Adding Family Members	 	1
	Removing Family Members	 	1
	Existing Patients	 	1
	Removing Patients	 	1
	Payments and Adjustments	 	1
	Balance Adjustment	 	3
	Back Office	 	1
	Initial Exam	 	4

 

The Joint RD FDD – Exhibit C – Table of Contents – RD Manual 

    	 

    	 

    

 

	MARKETING	 	 
	Guidelines	 	1
	Contacts	 	1
	Marketing 101	 	4
	Grand Opening Plan	 	3
	Tools	 	5
	Zone Advertising	 	3
	Display Ads	 	1
	Inserts	 	1
	Post it Notes	 	1
	Wraps	 	4
	Miscellaneous	 	2
	Marketing	 	3
	Email Marketing	 	2
	Online Marketing	 	2
	Additional Options	 	3
	Guerilla Marketing	 	5
	The Message	 	3
	Clayton Kendall	 	4
	Social Media	 	5

 

Total Pages (Approximate)
- 298

 

The
Joint RD FDD – Exhibit C – Table of Contents – RD Manual 

    	 

    	 

    

 

Exhibit
D

 

FINANCIAL
STATEMENTS

    	 

    	 

    

 

 

 

CONSOLIDATED FINANCIAL STATEMENTS

 

DECEMBER 31, 2012 AND 2011

    	 

    	 

    

 

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

CONSOLIDATED FINANCIAL STATEMENTS 

 

DECEMBER 31, 2011 AND 2010

 

The Joint RD FDD – Exhibit D – Financial Statements 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

EXHIBIT E

 

CONFIDENTIALITY/NON-DISCLOSURE AGREEMENT

 

The Joint RD FDD – Exhibit
E - Confidentiality/Non-Disclosure Agreement

    	 	1

    	 

    

 

CONFIDENTIALITY/NONDISCLOSURE AGREEMENT

 

THIS
AGREEMENT, made and entered into this ______ day of __________________, 20____, by and between The Joint Corp., a
Delaware corporation, (hereinafter referred to as "the Company") and
____________ ____________________________________________________________________, whose address is
____________________________________________________________ (hereinafter referred to as "Prospective Regional
Developer").

 

WITNESSETH THAT:

 

WHEREAS, Prospective
Regional Developer desires to obtain certain confidential and proprietary information from the Company for the sole purpose of
inspecting and analyzing said information in an effort to determine whether to purchase a franchise from the Company; and

 

WHEREAS, the
Company is willing to provide such information to Prospective Regional Developer for the limited purpose and under the terms and
conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants and promises herein contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:

 

1.          DEFINITION.
"Confidential Information" is used herein to mean all information, documentation and devices disclosed to or made
available to Prospective Regional Developer by the Company, whether orally or in writing, as well as any information, documentation
or devises heretofore or hereafter produced by Prospective Regional Developer in response to or in reliance on said information,
documentation and devises made available by the Company.

 

2.          TERM.
The parties hereto agree that the restrictions and obligations of Paragraph 3 of this Agreement shall be deemed to have been
in effect from the commencement on the ______ day of __________________, 20____, of the ongoing negotiations between Prospective
Regional Developer and the Company and continue in perpetuity until disclosed by the Company.

 

3.          TRADE
SECRET ACKNOWLEDGEMENT. Prospective Regional Developer acknowledges and agrees the Confidential Information is a valuable trade
secret of the Company and that any disclosure or unauthorized use thereof will cause irreparable harm and loss to the Company.

 

4.          TREATMENT
OF CONFIDENTIAL INFORMATION. In consideration of the disclosure to Prospective Regional Developer of Confidential Information,
Prospective Regional Developer agrees to treat Confidential Information in confidence and to undertake the following additional
obligations with respect thereto:

 

(a) To use Confidential
Information for the sole purpose of inspecting and analyzing the information in an effort to determine whether to purchase a franchise
from the Company and solely in its operation of the Company Franchise;

 

(b) Not to disclose Confidential
Information to any third party;

 

(c) To limit dissemination
of Confidential Information to only those of Prospective Regional Developer’s officers, directors and employees who have
a need to know to perform the limited tasks set forth in Item 4 (a) above; and who have agreed to the terms and obligations of
this Agreement by affixing their signatures hereto;

 

(d) Not to copy Confidential
Information or any portions thereof; and

 

The Joint RD FDD – Exhibit
E - Confidentiality/Non-Disclosure Agreement

    	 	2

    	 

    

 

e) To return Confidential
Information and all documents, notes or physical evidence thereof, to the Company upon a determination that Prospective Regional
Developer no longer has a need therefore, or a request therefore, from the Company, whichever occurs first.

 

5.          SURVIVAL
OF OBLIGATIONS. The restrictions and obligations of this Agreement shall survive any expiration, termination or cancellation
of this Agreement and shall continue to bind Prospective Regional Developer, his heirs, successors and assigns in perpetuity.

 

6.          NEGATION
OF LICENSES. Except as expressly set forth herein, no rights to licenses, expressed or implied, are hereby granted to Prospective
Regional Developer as a result of or related to this Agreement.

 

7.          APPLICABLE
LAW. This Agreement shall be construed and enforced in accordance with the laws of the State of Arizona.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed.

 

	THE JOINT CORP.	 
	 	 
	A Delaware corporation	 
	 	 
	BY:	 	 
	 	 	 
	ITS:	 	 
	 	 
	 	 
	(Signature of Prospective Franchise Owner)	 
	 	 
	 	 
	Print Name of Prospective Franchise Owner	 

 

The Joint RD FDD – Exhibit
E - Confidentiality/Non-Disclosure Agreement

    	 	3

    	 

    

 

EXHIBIT F

 

LIST OF FRANCHISEES

 

REGIONAL DEVELOPERS:

 

Austin, Dallas, Houston, 

and San Antonio, Texas

David Glover

Anne Glover

908 Town & Country Blvd

Suite 120

Houston, TX 77024

(713) 829-5198

 

Denver, Colorado

Brad Remington

3139 Emporia St.

Denver, CO 80238

(314) 604-0608

 

LA County and Northern California

Chad Meisinger

Raymond Espinoza

23522 El Toro Road

Suite 204

Lake Forest, CA 92630

(949) 412-8421

 

Orange and San Diego Counties, California 

Dennis Conklin

3216 Sitio Montecillo

Carlsbad, CA 92009

(602) 999-2397

 

Eric Hua

23625 El Toro Rd, suite B

Lake Forest, CA 92630

(949) 842-1224

 

Louisiana 

Virgil and Vi Bryant

800 W. Main Street

New Iberia, LA 70560

337-380-9433

 

Tampa and Sarasota, Florida

Virgil and Vi Bryant

800 W. Main Street

New Iberia, LA 70560

337-380-9433

 

Seattle Washington

Tony and Teresa Digiuseppe

10869 N. Scottsdale Road

Suite 103-257

Scottsdale, Arizona

85254

602-405-0558

 

New York

Counties of: Erie, Monroe, Nassau and Suffolk

Marc Ressler, Angelo Marracino and Cleon Easton III

4375 Transit Road Suite # 250

Clarence, New York

14221

716-907-1444

 

Salt Lake City, Utah

Reno, Nevada

Boise, Idaho 

Chris O’Neal

5422 Longley Lane Suite A 

Reno, Nevada 89511

805-451-3281

 

St. Louis, Missouri 

Mike Klearman

Bruce Conner

P.O. Box 726

Chesterfield, MO 63006

(636) 675-0366

 

The Joint RD FDD – Exhibit
F – List of Franchise Owners

    	 	1

    	 

    

 

South Carolina,

Augusta and Savannah Georgia

David Glover

Anne Glover

908 Town & Country Blvd

Suite 120

Houston, TX 77024

(713) 829-5198

 

Michael Fluegge

1955 Old Mill Road

Campobello, South Carolina

29322

864-415-4191

 

Minnesota

Steve Long

Benjamin Anderson

Robert Anderson

2208 Brookhaven CT

Edmond, OK 73034

405-414-1717

 

Inland Empire, California and Las Vegas, Nevada

Christina Yabanez

1650 E. Camelback Road

Suite 170

Phoenix, Arizona 85016

915-920-6663

 

Atlanta Georgia

Dr. Patrick Greco

650 Ponce de Leon Ave.

Suite 600A

Atlanta, GA 30308

404-797-6088

 

North Carolina

Paul Trindel

5797 Meadow Pond Ct

Summerfield, NC 27358

336-601-2926

 

New Jersey

Tom Walsh

63 Strauss Drive

Shrewsbury, New Jersey

07702

732-687-4884

 

The Joint RD FDD – Exhibit
F – List of Franchise Owners

    	 	2

    	 

    

 

The following lists the name, city and
state, and the current business telephone number (or, if unknown, the last known home telephone number) of Regional Developers
franchisees who had an outlet terminated, canceled, not renewed, or otherwise voluntarily or involuntarily ceased to do business
under the Regional Developer Agreement with us during our most recently completed fiscal year or who had not communicated with
us within 10 weeks of the issuance date of this Disclosure Document: 

 

None

 

The Joint RD FDD – Exhibit
F – List of Franchise Owners

    	 	1

    	 

    

 

EXHIBIT
G

 

general
release – form

 

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

GENERAL RELEASE AGREEMENT

 

THIS GENERAL RELEASE
AGREEMENT (“Release”) is made and entered into this ______ day of _____________, 20__, by and between THE
JOINT CORP., a Delaware corporation (“Franchisor”), and _________________________________, a _______________
corporation/limited liability company/partnership (circle one) (“Regional Developer”), and each shareholder/member/partner
of Regional Developer and his or her spouse (individually, an “Owner,” and collectively, the “Owners”)
(collectively, Franchisor, Franchisee, and the Owners are referred to hereinafter as the “Parties”).

 

WHEREAS, the Parties
previously entered into that certain Regional Developer Agreement dated _________________, 20___ (the “Agreement”),
granting Regional Developer a single Regional Developer Business of Franchisor for a specific Term (as defined in the Agreement);
and

 

WHEREAS, Regional Developer
desires to renew the Agreement for an additional Term (as defined in the Agreement); and

 

WHEREAS, Section 4
of the Agreement requires Regional Developer and each of its Owners and their respective spouses to execute, in favor of Franchisor
and its officers, directors, agents, and employees, and Franchisor’s affiliates and their officers, directors, agents, and
employees, as a condition to renew the Agreement, a general release from liability of all claims that Regional Developer, its Owners,
and their respective spouses may have against Franchisor, its affiliates, and their respective owners, officers, directors, employees,
and agents; and

 

WHEREAS, the Parties
desire to enter into this Release to comply with the requirements of the Agreement and preserve Regional Developer’s eligibility
to renew the Agreement.

 

NOW, THEREFORE, in
consideration of the mutual agreements contained herein and other valuable consideration, the Parties hereby agree as follows:

 

1.          Recitals.
The foregoing Recitals are incorporated into and made part of this Release.

 

2.          Release.
Regional Developer, each Owner and his or her spouse, and their present or former affiliated entities, officers, directors, shareholders,
partners, members, employees, contractors, agents, predecessors, successors, assigns, attorneys, representatives, heirs, personal
representatives and any spouses of each, as well as all other persons, firms, corporations, limited liability companies, associations
or partnerships or other affiliated entities claiming by or through them (the “Releasing Entities”), hereby fully release
Franchisor and its present or former officers, directors, shareholders, partners, members, employees, contractors, agents, predecessors,
successors, assigns, attorneys, representatives, heirs, personal representatives and any spouses of each, and Franchisor’s
affiliates and other related parties and their respective present or former officers, directors, shareholders, partners, members,
employees, contractors, agents, predecessors, successors, assigns, attorneys, representatives, heirs, personal representatives
and any spouses of each, as well as all other persons, firms, corporations, limited liability companies, associations or partnerships
or other affiliated entities claiming by or through Franchisor (the “Released Entities”) from any and all liabilities,
claims, demands, debts, damages, obligations and causes of action of any nature or kind, whether presently known or unknown, which
Franchisee and/or Owner and/or his or her spouse may have against the Released Entities as of the date this Agreement is executed,
except for any claims under [the California Franchise Investment Law (California Corporations Code sections 31000 to 31516) or
the California Franchise Relations Act (California Business and Professions Code Sections 20000 to 20043); the Indiana Franchise
Act; the Illinois Franchise Disclosure Act; the Maryland Franchise Registration and Disclosure Law; Minnesota Statutes, 1973 Supplement,
sections 80C.01 to 80C.22 (the “Minnesota Franchise Law”); or the Washington Franchise Investment Protection Act].

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

3.          Miscellaneous.

 

A.           This
Release contains the entire agreement and representations between the Parties hereto with respect to the subject matter hereof.
This Release supersedes and cancels any prior understanding or agreement between the parties hereto whether written or oral, express
or implied. No modifications or amendments to this Release shall be effective unless in writing, signed by all Parties.

 

B.           In
the event any provision hereof, or any portion of any provision hereof shall be deemed to be invalid, illegal or unenforceable,
such invalidity, illegality, or unenforceability shall not affect the remaining portion of any provision, or of any other provision
hereof, and each provision of this Release shall be deemed severable from all other provisions hereof.

 

C.           This
Release shall be governed by the laws of the State of Arizona. Any litigation or court action arising under or related to this
Release shall be filed in state or federal court in Maricopa County, State of Arizona.

 

D.           In
the event a court action is brought to enforce or interpret this Release, the prevailing Party in that proceeding or action shall
be entitled to reimbursement of all of its legal expenses, including, but not limited to, reasonable attorneys’ fees and
court costs incurred. The prevailing Party shall be entitled to reimbursement of all such expenses both in the initial proceeding
or action and on any appeal therefrom.

 

E.           This
Release is binding on the Parties hereto and their respective successors, heirs, beneficiaries, agents, legal representatives,
and assigns, and on any other persons claiming a right or interest through the Parties.

 

F.           This
Release may be executed in any number of counterparts, all of which shall be deemed to constitute one and the same instrument,
and each counterpart shall be deemed an original.

 

IN WITNESS WHEREOF, the Parties hereto
affix their signatures and execute this Release as of the day and year first above written.

 

	FRANCHISOR:	 
	 	 
	THE JOINT CORP.	 
	 	 
	a Delaware corporation	 
	 	 
	 	 
	 	 
	By:	 	 
	 	 	 
	Its:	 	 

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

	FRANCHISEE:	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	 	 
	Title:	 	 

 

OWNERS:

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

[The remainder of
this page is intentionally left blank]

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

[The remainder of
this page is intentionally left blank]

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

[The remainder of
this page is intentionally left blank]

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

	
         

         

        _______________________________

        Signature of Owner
	
        Owner’s Residential Address:

         

        _______________________________
	Owner's % Ownership:
	
         

        ______________________________

        Printed/Typed Name of Owner
	
         

        _______________________________
	
         

        _______%

	
         

         

        ______________________________

        Signature of Owner's Spouse
	
        Owner’s Title/Position with Franchisee:

         

        _______________________________

	
         

        _______________________________

        Printed/Typed Name of Spouse
	
         

         

        Date: ____________________, 200__

 

The Joint RD FDD – Exhibit G – General Release Form

    	 

    	 

    

 

EXHIBIT
H

 

TRANSFER
AGREEMENT

 

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

TRANSFER AGREEMENT

 

THIS TRANSFER AGREEMENT
(“Agreement”) is made and entered into this ______ day of _____________, 200__, by and between THE JOINT CORP.,
a Delaware corporation, (“Franchisor”), and _________________________________, a _______________ corporation/limited
liability company/partnership (circle one) (“Regional Developer”), and each undersigned owner of Regional Developer
and his or her spouse (individually, an “Owner,” and collectively, the “Owners”), and _______________________________,
a _______________ corporation/limited liability company/partnership (circle one) (“Assignee”) (collectively, Franchisor,
Regional Developer, Owners, and Assignee are referred to hereinafter as the “Parties”).

 

WITNESSETH:

 

WHEREAS,
Franchisor and Regional Developer previously entered into that certain Regional Developer Agreement
dated ______________________, 20__ (the “RDA”), granting to Regional Developer that certain Regional
Developer franchise located at _______________________________________ _
 _______________________________ ________________________________________________________________________________________________________________________________(the “Franchise”);

 

WHEREAS, the RDA provides
as follows with respect to the Transfer (as defined below) of the RDA, the Franchise, or any interest therein:

 

a.           Section
11.2(a) states that any Transfer (as defined below) of the Regional Developer’s interest in the RDA or of Regional Developer’s
rights or privileges under the RDA must be approved by Franchisor in writing before such Transfer may be made or become effective;

 

b.           Section
11.2(b) of the RDA defines as a “Transfer” any voluntary, involuntary, direct or indirect assignment, sale, gift or
other disposition, and includes without limitation (i) the transfer of record or beneficial ownership of capital stock, partnership
interest, membership interest, or other ownership interest in Regional Developer, or right to receive all or a portion of Regional
Developer’s profits or losses; (ii) merger, consolidation, or exchange of shares or other ownership interests, or issuance
of additional ownership interests or securities representing or potentially representing shares or other ownership interests, or
redemption of shares or other ownership interests; (iii) any sale or exchange of voting interests or securities convertible
to voting interests, or any agreement granting the right to exercise or control the exercising of the voting rights of any Owner
or to control Regional Developer’s operations or affairs; (iv) any transfer of an interest in Regional Developer, the Agreement,
or the Regional Developer Business or its assets (or any right to receive all or a portion of Regional Developer’s or the
Regional Developer Business’s profits or losses or any capital appreciation relating to the Regional Developer Business)
in a divorce, insolvency, or entity dissolution proceeding, or otherwise by operation of law; (v) if Regional Developer or an Owner
dies, the transfer of an interest in Regional Developer, the Agreement, or the Regional Developer Business or its assets (or any
right to receive all or a portion of Regional Developer’s or the Regional Developer Business’s profits or losses or
any capital appreciation relating to the Regional Developer Business) by will, declaration or transfer in trust, or under the law
of instate succession; and (vi) pledge of the Agreement or an ownership interest in Regional Developer as security, or Regional
Developer’s transfer, surrender, or loss of possession, control, or management of its Regional Developer franchise.

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

c.           Section
11.3 of the RDA sets forth certain terms and conditions that must be complied with, or that Franchisor may require be complied
with, before any Transfer may be made or become effective; and

 

WHEREAS,
Regional Developer and/or each undersigned Owner wish(es) to Transfer (as defined in Section 11.2(b) of the RDA) to Assignee
the following interest (the “Transferred Interest”): ______________
______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

______________________________________________________________________________________________________

 

WHEREAS, Franchisor
is willing to consent to the above Transfer of the Transferred Interest, and the Parties desire that the Transfer be made in accordance
with the following terms and conditions;

 

NOW, THEREFORE, in
consideration of the mutual agreements, covenants and undertakings herein contained and other valuable consideration, the adequacy
of which is acknowledged by all Parties, the Parties hereby agree as follows:

 

1.          Recitals.
The above Recitals and sections of the RDA referred therein are hereby incorporated into and made part of this Agreement.

 

2.          Consent
to Transfer. Franchisor hereby consents to the Transfer of the Transferred Interest as described in the Recitals.

 

3.          Conditions
for Approval of Transfer. Regional Developer, and/or each undersigned Owner and his or her spouse, and Assignee each hereby
represent and warrant that the conditions for approval of Transfer as set forth in Section 11.3 of the RDA, to the extent such
conditions are not specifically addressed or resolved under this Agreement, have been fully and completely satisfied as provided
in such Section 11.3 and to Franchisor’s satisfaction.

 

4.          Release.
Regional Developer, each Owner and his or her spouse, and their present or former affiliated entities, officers, directors, shareholders,
partners, members, employees, contractors, agents, predecessors, successors, assigns, attorneys, representatives, heirs, personal
representatives and any spouses of each, as well as all other persons, firms, corporations, limited liability companies, associations
or partnerships or other affiliated entities claiming by or through them (the “Releasing Entities”), hereby fully release
Franchisor and its present or former officers, directors, shareholders, partners, members, employees, contractors, agents, predecessors,
successors, assigns, attorneys, representatives, heirs, personal representatives and any spouses of each, and Franchisor’s
affiliates and other related parties and their respective present or former officers, directors, shareholders, partners, members,
employees, contractors, agents, predecessors, successors, assigns, attorneys, representatives, heirs, personal representatives
and any spouses of each, as well as all other persons, firms, corporations, limited liability companies, associations or partnerships
or other affiliated entities claiming by or through Franchisor (the “Released Entities”) from any and all liabilities,
claims, demands, debts, damages, obligations and causes of action of any nature or kind, whether presently known or unknown, which
Franchisee and/or Owner and/or his or her spouse may have against the Released Entities as of the date this Agreement is executed,
except for any claims under [the California Franchise Investment Law (California Corporations Code sections 31000 to 31516) or
the California Franchise Relations Act (California Business and Professions Code Sections 20000 to 20043); the Indiana Franchise
Act; the Illinois Franchise Disclosure Act; the Maryland Franchise Registration and Disclosure Law; Minnesota Statutes, 1973 Supplement,
sections 80C.01 to 80C.22 (the “Minnesota Franchise Law”); or the Washington Franchise Investment Protection Act].

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

5.          Non-Competition;
Non-Solicitation; Confidentiality.

 

A.           Definitions.
Wherever used in this Section 5, the term “Franchisor” shall refer to Franchisor and any affiliate, subsidiary, or
any successor or assign of Franchisor. Wherever used in this Section, the phrase “directly or indirectly” includes,
but is not limited to, acting, either personally or as principal, owner, shareholder, employee, independent contractor, agent,
manager, partner, joint venturer, consultant, or in any other capacity or by means of any corporate or other device, or acting
through the spouse, children, parents, brothers, sisters, or any other relatives, friends, trustees, agents, or associates of any
of the undersigned parties. Wherever used in this Section, the term “employees” shall refer to employees of Franchisor;
any affiliate, subsidiary, or any successor or assign of Franchisor; and any franchisee of Franchisor existing as of the date of
this Agreement and, to the extent allowable by law, any other person that has been an employee (as defined above) in the twelve
(12) months preceding the date of this Agreement. Whenever used in this Section, the term “Confidential Information”
shall be defined as provided in Section 10 of the RDA, which provisions are hereby incorporated by reference.

 

B.           Consideration.
The undersigned Parties acknowledge that consideration for this Agreement has been provided and is adequate. The consideration
includes, but is not limited to, the granting of the Franchise to Regional Developer and/or each undersigned Owner, and Franchisor’s
consent to the Transfer of the Transferred Interest as provided in this Agreement.

 

C.           Need
for this Agreement. The undersigned Parties recognize that in the highly competitive business in which Franchisor and its affiliates
and franchisees are engaged, preservation of Confidential Information is crucial and personal contact is important in securing
new franchisees and employees, and retaining the goodwill of present franchisees, employees, customers, and suppliers. Personal
contact is a valuable asset and is an integral part of protecting the business of Franchisor. Regional Developer and/or each undersigned
Owner recognize that it has had substantial contact with Franchisor’s employees, customers, and suppliers and Confidential
Information. For that reason, Regional Developer and/or each undersigned Owner may be in a position to take for his or her benefit
the Confidential Information and goodwill Franchisor has with its employees and Confidential Information now or in the future.
If Regional Developer and/or each undersigned Owner, after the Transfer of the Transferred Interest as provided in this Agreement,
takes advantage of such Confidential Information or goodwill for Regional Developer’s and/or each undersigned Owner’s
own benefit, then the competitive advantage that Franchisor has created through its efforts and investment will be irreparably
harmed.

 

D.           Non-Competition
with Franchisor. Regional Developer and/or each undersigned Owner of Regional Developer agrees that for eighteen (18) months
following the date of this Agreement, neither Regional Developer, nor any Owner, nor any member of Regional Developer’s or
an Owner’s immediate family will have any direct or indirect interest (e.g., through a spouse) as a disclosed or beneficial
owner, investor, partner, director, officer, employee, consultant, representative or agent, or in any other capacity, in any Competitive
Business located or operating: (a) within the Development Area; (b) within the development area of any of our other regional developers,
or (c) within twenty-five (25) miles of any The Joint Corp. location franchise in operation or development on the date of this
Agreement. The term “Competitive Business” means any business which derives more than Fifty-Thousand Dollars ($50,000)
of revenue per year from the performance of chiropractic or related services, or any business which grants franchises or licenses
to others to operate such a business, other than a franchise operated under a franchise or regional developer agreement with us.

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

E.           Non-Solicitation
of Franchisor’s Employees. Regional Developer and/or each undersigned Owner agrees that for twelve (12) months after
the date of this Agreement, it will not directly or indirectly: (a) induce, canvas, solicit, or request or advise any employees
of Franchisor, the Franchise, or any Location or Regional Developer franchise to accept employment with any person, firm, or business
that competes with any business of Franchisor, or any The Joint Corp. location or regional developer franchise; or (b) induce,
request, or advise any employee of Franchisor, the Franchise, or any The Joint franchise to terminate such employee’s relationship
with Franchisor, the Franchise, or any The Joint franchise; or (c) disclose to any other person, firm, partnership, corporation
or other entity, the names, addresses or telephone numbers of any of the employees of Franchisor, the Franchise, or any The Joint
franchise, except as required by law.

 

F.           Non-Solicitation
of Franchisor’s Customers. Regional Developer and/or each undersigned Owner agrees that for twelve (12) months after
the date of this Agreement, it will not directly or indirectly: (a) induce, canvas, solicit, or request or advise any customers
of Franchisor, the Franchise, or any The Joint franchise to become customers of any person, firm, or business that competes with
any business of Franchisor, the Franchise, or any The Joint franchise; or (b) induce, request or advise any customer of Franchisor,
the Franchise, or any The Joint franchise to terminate or decrease such customer’s relationship with Franchisor, the Franchise,
or any The Joint franchise; or (c) disclose to any other person, firm, partnership, corporation or other entity, the names, addresses
or telephone numbers of any of the customers of Franchisor, the Franchise, or any The Joint franchise, except as required by law.

 

G.           Confidential
Information. Regional Developer and/or each undersigned Owner agrees at all times following the date of this Agreement, to
hold the Confidential Information in the strictest confidence and not to use such Confidential Information for Regional Developer’s
and/or each undersigned Owner’s personal benefit, or the benefit of any other person or entity other than Franchisor, or
disclose it directly or indirectly to any person or entity without Franchisor’s express authorization or written consent.
Regional Developer and each undersigned Owner fully understand the need to protect the Confidential Information and all other confidential
materials and agree to use all reasonable care to prevent unauthorized persons from obtaining access to Confidential Information
at any time.

 

6.          Subordination.
Regional Developer and/or each undersigned Owner and Assignee each agrees that all of Assignee’s obligations to make any
installment payments to or for the benefit of Regional Developer and/or an undersigned Owner in connection with the Transfer of
the Transferred Interest as provided under this Agreement shall be subordinate to Assignee’s obligations under the RDA or
any New RDA (as defined below) to pay to us or our affiliates any fees and payments provided for therein.

 

7.          New
RDA. Assignee agrees that in connection with the Transfer of the Transferred Interest to it, Assignee shall sign at Franchisor’s
request the form of Regional Developer Agreement currently used by Franchisor in selling and offering franchises like the Franchise
(the “New RDA”).

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

8.          Guaranty
of Obligations. In consideration of, and as an inducement to, the execution of this Agreement by Franchisor, each undersigned
Owner hereby personally and unconditionally (a) guarantees to Franchisor us and its successors and assigns that the Owner
will punctually pay and perform each and every undertaking, agreement and covenant of Assignee set forth in the RDA or any New
RDA; and (2) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the RDA
or any New RDA, including without limitation, monetary obligations, the obligations to take or refrain from taking certain actions
and arbitration of disputes. Each undersigned Owner waives (1) protest and notice of default, demand for payment or nonperformance
of any obligations guaranteed by this Section 8; (2) any right the Owner may have to require that an action be brought against
Franchisor or any other person as a condition of the Owner’s liability; (3) all right to payment or reimbursement from,
or subrogation against, Franchisor which Owner may have arising out of this guaranty of Assignee; and (4) any and all other
notices and legal or equitable defenses to which Owner may be entitled in its capacity as guarantor. Each undersigned Owner consents
and agrees that (1) its direct and immediate liability under this Section shall be joint and several; (2) it will make
any payment or render any performance required under the RDA or any New RDA on demand if Assignee fails or refuses to do so when
required; (3) its liability will not be contingent or conditioned on our pursuit of any remedies against Assignee or any other
person; (4) its liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other
indulgence which Franchisor may from time to time grant to Assignee or to any other person, including without limitation, the acceptance
of any partial payment or performance, or the compromise or release of any claims; and (5) the guaranty under this Section
will continue and be irrevocable during the term of the RDA or any New RDA and afterward for so long as Assignee has any obligations
under the RDA or any New RDA. If Franchisor is required to enforce the guaranty provided for under this Section in a judicial or
arbitration proceeding, and prevail in such proceeding, then each undersigned Owner agrees that Franchisor will be entitled to
reimbursement of its costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorneys' assistants',
arbitrators' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel
and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If
Franchisor is required to engage legal counsel in connection with any failure by any undersigned Owner to comply with the guaranty
provisions of this Section, then the Owner shall reimburse Franchisor for any of the above-listed costs and expenses incurred by
Franchisor.

 

9.          Breach.
The Parties hereby agree that each of the matters stated herein are important, material, and confidential, and substantially affect
the effective and successful conduct of the business of Franchisor and its reputation, and goodwill. Any breach of the terms of
this Agreement is a material breach of this Agreement, which will result in substantial and irreparable injury to Franchisor, for
which the breaching Party may be preliminarily and permanently enjoined and for which the breaching Party shall also pay to Franchisor
all damages (including, but not limited to, compensatory, incidental, consequential and lost profits damages) which arise from
the breach, together with interest, costs and Franchisor’s reasonable attorneys’ fees (through final unappealable judgment)
to enforce this Agreement. This Agreement does not limit any other remedies available at law or in equity available to Franchisor.

 

10.         No
Waiver. Franchisor may waive a provision of this Agreement only in writing executed by an authorized representative. No Party
shall rely upon any oral representations as to a waiver of any provision of this Agreement. No waiver by a Party of a breach by
another Party of any provision of this Agreement shall operate or be construed as a waiver of any subsequent breach by the breaching
Party.

 

11.         Assignment.
This Agreement is fully transferable by Franchisor. Regional Developer and/or each undersigned Owner and Assignee shall not assign,
convey, sell, delegate, otherwise transfer this Agreement or any right or duty hereunder without obtaining Franchisor’s prior
written consent.

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

12.         Binding
Agreement. This Agreement shall be binding upon the Parties’ heirs and legal representatives. This Agreement shall be
enforceable by the successors and assigns of Franchisor, any person or entity which purchases substantially all of the assets of
Franchisor, and any subsidiary, affiliate or operation division of Franchisor.

 

13.         Tolling.
To ensure that Franchisor will receive the full benefit of this Agreement, the provisions of this Agreement will not run, for purposes
of the prohibitions on any competition and solicitation, statute of limitations, or for laches, at any time that a party to this
Agreement is actually acting in any way in contravention to this Agreement.

 

14.         Headings.
The paragraph headings of this Agreement are not a substantive part of this Agreement and shall not limit or restrict this Agreement
in any way.

 

15.         Choice
of Law and Venue. This Agreement shall be construed in accordance with and governed for all purposes by the laws of the State
of Arizona. If any action or proceeding shall be instituted by any Party, or any representative thereof, all Parties and their
representatives hereby consent and will submit to the jurisdiction of, and agree that venue is proper in Maricopa County, State
of Arizona.

 

16.         Severance
and Reformation. In case any one or more of the provisions or restrictions contained in this Agreement, or any part thereof,
shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions or restrictions of this Agreement. In case any one or more of the provisions or restrictions
contained in this Agreement shall, for any reason, be held to be unreasonable, improper, overbroad or unenforceable in any manner,
it is agreed that they are divisible and separable and should be valid and enforceable to the extent allowed by law. The intention
of the Parties is that Franchisor shall be given the broadest protection allowed by law with respect to this Agreement.

 

17.         Entire
Agreement. No change, addition, deletion or amendment of this Agreement shall be valid or binding upon any Party unless in
writing and signed by the Parties. Insofar as matters within the scope of this Agreement are concerned, this Agreement is the entire
Agreement between the Parties and replaces and supersedes all prior agreements and understandings pertaining to the matters addressed
in this Agreement. There are no oral or other agreements or understandings between the Parties affecting this Agreement.

 

18.         Counterparts.
This Agreement may be executed in any number of counterparts, all of which shall be deemed to constitute one and the same instrument,
and each counterpart shall be deemed an original

 

19.         Opportunity
to Seek Independent Advice. The undersigned Parties recognize that this Agreement is an important document that affects their
legal rights. For this reason, the Parties may wish to seek independent legal advice before accepting the terms stated herein.
The undersigned Parties acknowledge that they have had an opportunity to seek such independent legal advice. They acknowledge that
they have read and understand the provisions contained herein and acknowledge receipt of a copy of this Agreement.

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

IN WITNESS WHEREOF, the Parties hereto affix
their signatures and execute this Agreement as of the day and year first above written.

 

	FRANCHISOR:  	 
	 	 
	THE JOINT CORP. 	 
	a Delaware corporation	 
	 	 
	 	 
	By:	 	 
	Its:	 	 
	 	 	 
	FRANCHISEE:  	 
	 	 
	 	 
	 	 	 
	 	 
	By:	 	 
	Its:	 	 

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

OWNER AND OWNER’S SPOUSE:

 

	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	ASSIGNEE:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Its:	 	 	 	 

 

The Joint RD FDD – Exhibit H – Transfer Agreement

    	 

    	 

    

 

 

Exhibit
I

 

state-specific
disclosures

  

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF CALIFORNIA

 

CALIFORNIA CORPORATIONS
CODE SECTION 31125 REQUIRES THAT THE FRANCHISOR GIVE THE FRANCHISEE A DISCLOSURE DOCUMENT APPROVED BY THE DEPARTMENT OF CORPORATIONS
PRIOR TO A SOLICITATION OF A PROPOSED MATERIAL MODIFICATION OF AN EXISTING FRANCHISE.

 

THE CALIFORNIA FRANCHISE
INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH
THE DISCLOSURE DOCUMENT.

 

Neither we nor any
person or franchise broker identified in Item 2 is subject to any currently effective order of any national securities association
or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending
or expelling such persons from membership in that association or exchange.

 

Item 5 of the Disclosure Document is modified to
include the following paragraph:

 

We apply the initial Regional
Developer fee to our general operating revenues, which we use, among other purposes, to cover the costs of marketing to prospective
Regional Developer franchisees, training new Regional Developer franchisees and assisting new Regional Developer franchisees in
opening their businesses.

 

The California Business
and Professions Code Sections 20000 through 20043 provide rights to you concerning termination and non-renewal of a franchise.
If the Regional Developer Agreement contains a provision that in inconsistent with the law, the law will control. We may not terminate
your Regional Developer franchise except for good cause, and we must give you a notice of default and a reasonable opportunity
to cure the defects (except for certain defects specified in the statute, for which no opportunity to cure is required by law).
The statute also requires that we give you notice of any intention not to renew your Regional Developer franchise at least 180
days before expiration of the Regional Developer Agreement.

 

You must sign a general
release if you renew or transfer your Regional Developer franchise. California Corporations Code 31512 voids a waiver of your rights
under the Franchise Investment Law (California Corporations Code 31000 through 31516). Business and Professions Code 20010 voids
a waiver of your rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043).

 

The Regional Developer
Agreement contains a covenant not to compete which extends beyond the termination of your Regional Developer franchise. This provision
may not be enforceable under California law.

 

THE REGIONAL DEVELOPER
AGREEMENT REQUIRES APPLICATION OF THE LAW OF ARIZONA. THIS PROVISION MAY NOT BE ENFORCEABLE UNDER CALIFORNIA LAW. To the extent
permitted by law, you and we waive any right to or claim for any punitive or exemplary damages against each other and agree that
in the event of a dispute between us, each will be limited to the recovery of actual damages only (except in limited circumstances).
Each party further waives trial by jury and, to the extent permitted by law, all claims arising out of or relating to the Regional
Developer Agreement must be brought within one year from the date on which you or we knew or should have known of the facts giving
rise to such claims (except for claims relating to nonpayment or underpayment of amounts you owe us).

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

The Regional Developer
Agreement requires binding arbitration. The arbitration will occur at the office of the American Arbitration Office closest to
our principal executive offices. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability
of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and
the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.

 

REQUIRED BY THE STATE OF HAWAII

 

THESE FRANCHISES WILL
BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION
OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT
THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.

 

THE FRANCHISE INVESTMENT
LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR,
AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST
SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE
DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.

 

THIS DISCLOSURE DOCUMENT
CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED
TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.

 

Item 20 of this Disclosure
Document will be amended by the addition of the following paragraph:

 

As of the dates listed
in Attachment 1, this franchise offering is or will be effective in California, Hawaii, Illinois, Indiana, Michigan, Minnesota,
New York, North Dakota, Rhode Island, South Dakota, Washington and Wisconsin and exempt from registration in Arizona and Utah.
No states have refused, by order or otherwise, to register these franchises. No states have revoked or suspended the right to offer
these franchises. The proposed registration of these franchises has not been involuntarily withdrawn in any state.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF ILLINOIS

 

Item 17 of this disclosure document is supplemented
by the addition of the following paragraphs at the end of the chart:

 

State Law

 

The conditions under which you
can be terminated and your rights on non-renewal may be affected by Illinois law, 815 ILCS 705/19 and 705/20.

 

The Illinois Franchise Disclosure
Act will govern any Regional Developer Agreement if it applies to a subfranchise located in Illinois.

 

Any condition in the Regional
Developer Agreement that designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action
that otherwise is enforceable in Illinois, provided that the Regional Developer Agreement may provide for arbitration in a forum
outside of Illinois.

 

REQUIRED BY THE STATE OF INDIANA

 

The Regional Developer
Agreement contains a covenant not to compete that extends beyond the termination of your Regional Developer franchise. This provision
may not be enforceable under Indiana law.

 

Indiana law makes unilateral
termination of your Regional Developer franchise unlawful unless there is a material violation of the Regional Developer Agreement
and the termination is not done in bad faith.

 

If Indiana law requires
the Regional Developer Agreement and all related documents to be governed by Indiana law, then nothing in the Regional Developer
Agreement or related documents referring to Arizona law will abrogate or reduce any of your rights as provided for under Indiana
law.

 

Indiana law prohibits a prospective general
release of claims subject to the Indiana Deceptive Franchise Practices Law.

 

Although the Regional Developer Agreement
requires arbitration to be held at the office of the American Arbitration Association closest to our principal executive offices,
arbitration held pursuant to the Regional Developer Agreement must take place in Indiana if you so request. If you choose Indiana,
we have the right to select the location in Indiana.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF MARYLAND

 

A franchisee located
within the state of Maryland shall not be required to assent to any release, estoppel or waiver of liability as a condition of
purchasing a franchise which would act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise
Registration and Disclosure Law.

 

The provisions in the
Regional Developer Agreement relating to the general release that is required as a condition of renewal, sale and assignment/transfer
shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

 

Lawsuits by either
you or us may take place in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

 

Any limitation of claims
provision(s) in the Regional Developer Agreement shall not act to reduce the 3-year statute of limitations afforded to you for
bringing a claim under the Law. Any claims arising under the Maryland Franchise Registration and Law must be brought within 3 years
after the grant of the franchise to you.

 

REQUIRED BY THE STATE OF MICHIGAN

 

The state of Michigan
prohibits certain unfair provisions that are sometimes in franchise documents. If any of the following provisions are in these
franchise documents, the provisions are void and cannot be enforced against you. 

 

(a)            A
prohibition of the right of a franchisee to join an association of franchisees.

 

(b)            A
requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights
and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement, from settling
any and all claims.

 

(c)            A
provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause
shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure
after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure each
failure.

 

(d)            A
provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or
other means for the fair market value at the time of expiration of the franchisee’s inventory, supplies, equipment, fixtures,
and furnishings. Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures, and
furnishings not reasonably required in the conduct of the franchised business are not subject to compensation. This subsection
applies only if (i) the term of the franchise is less than 5 years and (ii) the franchisee is prohibited by the franchise or other
agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype,
advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not
receive at least 6 months’ notice of franchisor’s intent not to renew the franchise.

 

(e)            A
provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same
class or type under similar circumstances. This section does not require a renewal provision.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

(f)            A
provision requiring that arbitration or litigation be conducted outside this state. This shall not preclude the franchisee from
entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.

 

(g)           A
provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause. This subdivision
does not prevent a franchisor from exercising a right of first refusal to purchase the franchise. Good cause shall include, but
is not limited to:

 

(i)     The
failure of the proposed transferee to meet the franchisor’s then current reasonable qualification or standards.

 

(ii)    The
fact that the proposed transferee is a competitor of the franchisor or sub-franchisor.

 

(iii)   The
unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.

 

(iv)   The
failure of the franchisee or proposed transferee to pay any sums owing to the franchisor or to cure any default in the franchise
agreement existing at the time of the proposed transfer.

 

(v)    A
provision that requires the franchisee to resell to the franchisor items that are not uniquely identified with the franchisor.
This subdivision does not prohibit a provision that grants to a franchisor a right of first refusal to purchase the assets of a
franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this
subdivision prohibit a provision that grants the franchisor the right to acquire the assets of a franchise for the market or appraised
value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the
breach in the manner provided in subdivision

 

(h)           A
provision which permits the franchisor to directly or indirectly convey, assign, or otherwise transfer its obligations to fulfill
contractual obligations to the franchisee unless provision has been made for providing the required contractual services.

 

The fact that there
is a notice of this offering on file with the attorney general does not constitute approval, recommendation, or endorsement by
the attorney general.

 

Any questions regarding this notice should
be directed to the Attorney General’s Department for the State of Michigan, Consumer Protection Division, Franchise Section,
670 Law Building, 525 W. Ottawa Street, Lansing, Michigan 48913, (517) 373-7117.

 

REQUIRED BY THE STATE OF MINNESOTA

 

We will protect your
right to use the Marks and/or indemnify you from any loss, costs or expenses arising out of any claim, suit or demand regarding
the use of the Marks.

 

Minn. Rule 2860.4400D
prohibits us from requiring you to assent to a general release. Any release you sign as a condition of renewal or transfer will
not apply to any claims you may have under the Minnesota Franchise Law.

 

With respect to franchises
governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C. 14, subds, 3, 4 and 5 which require, except in certain specified
cases, that you be given 90 days’ notice of termination (with 60 days to cure) and 180 days’ notice for nonrenewal
of the Regional Developer Agreement.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

Minn. Stat. §
80C.17, Subd. 5, states that no civil action pertaining to a violation of a franchise rule or statute can be commenced more than
three years after the cause of action accrues

 

Minn. Stat. Sec. 80C.21
and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in this
Disclosure Document or the Regional Developer Agreement can abrogate or reduce any of your rights as provided for in Minnesota
Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

 

Minn. Rule Part 2860.4400J
prohibits us from requiring you to waive your rights to a jury trial or waive your rights to any procedure, forum, or remedies
provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.

 

REQUIRED BY STATE OF NEW JERSEY

 

Liquidated damages are void if unreasonable
under the totality of the circumstances, including whether a statute governs the relationship and concerns liquidated damages clauses;
and the common practice in the industry.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF NEW YORK

 

Registration of this
franchise by New York State does not mean that New York State recommends it or has verified the information in the Disclosure Document.

 

We may, if we choose,
negotiate with you about items covered in the Offering Prospectus. However, we cannot use the negotiating process to prevail upon
a prospective franchisee to accept terms which are less favorable than those set forth in the Offering Prospectus.

 

All references to “Disclosure
Document” will be deemed to include the term “Offering Prospectus” as used under the General Business Law of
New York.

 

Item 3 of the Offering Prospectus
is supplemented with the following:

 

Except as provided in Item 3
of the Offering Prospectus, neither we nor any person identified in Item 2 of the Offering Prospectus, or an affiliate offering
franchises under our principal trademark:

 

A.           Has
an administrative, criminal or civil action pending against that person alleging: a felony; a violation of a franchise, antitrust
or securities law; fraud, embezzlement, fraudulent conversion, misappropriation of property; unfair or deceptive practices or comparable
civil or misdemeanor allegations.

 

B.           Has
been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten-year period immediately preceding the
application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject
of a civil action alleging: violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or
misappropriation of property, or unfair or deceptive practices or comparable allegations.

 

C.           Is
subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, State
or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action
or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association
or national securities exchange, as defined in the Securities and Exchange Act or 1934, suspending or expelling such person from
membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to
any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions
affecting a license as a real estate broker or sales agent.

 

Item 4 of this Offering Prospectus is supplemented
with the following:

 

Except as provided in Item 4
of the Offering Prospectus, neither we, our affiliates, nor any officer or general partner has at any time during the ten year
period immediately before the date of the Offering Prospectus: (a) filed as debtor (or had filed against it) a petition to start
an action under the U.S. Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal
officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to
start an action under the U.S. Bankruptcy Code or that obtained a discharge of its debts under the U.S. Bankruptcy Code during
or within one year after our officer or general partner held this position in the company or partnership.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

Under the Regional
Developer Agreement, the Manuals we issue may be modified and you are bound by such modifications. However, no such modifications
may impose an unreasonable economic burden on you.

 

Provisions of general
releases are mentioned in the Offering Prospectus and specified in the Regional Developer Agreement. These releases are limited
by the following: all rights enjoyed by you and any causes of action arising in your favor from the provisions of Article 33 of
the General Business Law of the State of New York and the regulations issued under this law will remain in force, it being the
intent that the non-waiver proviso of the General Business Law of the State of New York Sections 687.4 and 687.5 be satisfied.

 

We will not make any
assignment of the Regional Developer Agreement except to an assignee who, in our good faith judgment, is willing and able to assume
our obligations under the Regional Developer Agreement.

 

The choice of law of
the Regional Developer Agreement should not be considered a waiver of any right conferred upon either you or us by the General
Business Law of the State of New York, Article 33.

 

Item 17 of the Offering
Prospectus, the summary column of part (d), is modified to include the following sentence:

 

You can also terminate
the Regional Developer Agreement on any grounds available by law.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF NORTH DAKOTA

 

The Regional Developer
Agreement contains a covenant not to compete which extends beyond the termination of your Regional Developer franchise. This provision
may not be enforceable under North Dakota law.

 

Although the Regional
Developer Agreement provides that the place of arbitration will be located at the office of the American Arbitration Association
closest to our principal executive offices, we agree that the place of arbitration will be a location that is in close proximity
to the site of your Franchised Business.

 

The Regional Developer
Agreement requires that you consent to the jurisdiction of a court in close proximity to our principal executive offices. This
provision may not be enforceable under North Dakota law because North Dakota law precludes you from consenting to jurisdiction
of any court outside of North Dakota.

 

Although the Regional
Developer Agreement provides that it will be governed by and construed in accordance with the laws of the State of Arizona, we
agree that the laws of the State of North Dakota will govern the construction and interpretation of the Regional Developer Agreement.

 

A contractual requirement that you sign
a general release may be unenforceable under the laws of North Dakota.

 

Although the Regional
Developer Agreement requires the franchisee to consent to a waiver of trial by jury, the Commissioner has determined that a requirement
requiring the waiver of a trial by jury to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North
Dakota Franchise Investment Law. This provision is not enforceable in North Dakota.

 

Although the Regional
Developer Agreement requires the franchisee to consent to a waiver of exemplary and punitive damages, the Commissioner had determined
these types of provisions to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise
Investment Law. This provision is not enforceable in North Dakota.

 

Although the Regional
Developer Agreement requires the franchisee to consent to a limitation of claims period within one year, the Commissioner had determined
this to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The
limitation of claims period is therefore governed by North Dakota law.

 

To the extent any provision of the Regional
Developer Agreement requires you to consent to a waiver of exemplary or punitive damages, the provision will be deemed null and
void.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

REQUIRED BY THE STATE OF RHODE ISLAND

 

Even though our Regional
Developer Agreement says the laws of Arizona apply, § 19-28.1-14 of the Rhode Island Franchise Investment Act provides that
“A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application
of the laws of another state is void with respect to a claim otherwise enforceable under this Act.”

 

REQUIRED BY THE STATE OF WASHINGTON

 

The state of Washington
has a statute, RCW 19.100.180 which may supersede the Regional Developer Agreement in your relationship with the franchisor including
the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Regional Developer
Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.

 

In any arbitration
involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually
agreed upon at the time of the arbitration, or as determined by the arbitrator.

 

In the event of a conflict
of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.

 

A release or waiver
of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when
executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent
counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act,
rights or remedies under the Act such as a right to a jury trial may not be enforceable.

 

Transfer fees are collectable
to the extent that they reflect the franchisor’s reasonable estimated or actual costs in effecting a transfer.

 

These requirements
must be included in an addendum to the Regional Developer Agreement you sign for the State of Washington.

 

The Joint RD FDD – Exhibit I – State-Specific Disclosures

    	 

    	 

    

 

exhibit
J

 

RECEIPTS

 

The Joint RD FDD – Exhibit J – Receipts

    	 

    	 

    

 

RECEIPT 

 

(Your
Copy – Retain For Your Files) 

 

This Disclosure Document summarizes certain
provisions of the Regional Developer Agreement and other information in plain language. Read this Disclosure Document and all agreements
carefully.

 

If we offer you a franchise, we must provide
this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate
in connection with the proposed franchise sale, or sooner if required by applicable law.

 

New York and Rhode Island require that
we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan, Oregon, and Washington
required that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise agreement
or other agreement or the payment of any consideration, whichever occurs first.

 

If we do not deliver this Disclosure Document
on time, or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may
have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the applicable state agency listed
in Exhibit A.

 

The franchisor is The Joint Corp., located
at 9383 East Bahia Drive, Suite 100, Scottsdale, Arizona 85260. Its telephone number is (480) 245-5960.

 

The following broker(s) will represent
us in connection with the sale of our franchises: ____________________________________ (Name) at_________________________________
(Principal Address) and _____________________ (Telephone Number).

 

Date of Issuance: May 1, 2013

 

See Exhibit A for our registered agents
authorized to receive service of process.

 

I have received a Franchise Disclosure
Document dated ______________. This Disclosure Document included the following Exhibits:

 

		A.	State Administrators /Agents for Service of Process

		B.	Regional Developer Agreement and Related Agreements

		C.	Table of Contents of Manuals

		D.	Financial Statements

		E.	Confidentiality/Non-Disclosure Agreement

		F.	List of Regional Developers

		G.	General Release Agreement

		H.	Transfer Agreement

		I.	State-Specific Disclosures

		J.	Receipts

 

	 	 	 	 
	Date	 	Signature of Prospective Regional Developer	 

 

	 	 	Print Name:	 	 

 

You may return the signed receipt either by signing, dating,
and mailing it to us at The Joint Corp., located at 9383 East Bahia Drive, Suite 100, Scottsdale, Arizona 85260, or by faxing a
copy of the signed and dated receipt to us at (480) 513-7989.

 

The Joint RD FDD – Exhibit J – Receipts

    	 

    	 

    

 

RECEIPT 

 

(Our
Copy – Sign, Date And Return To Us)

 

This Disclosure Document summarizes certain
provisions of the Regional Developer Agreement and other information in plain language. Read this Disclosure Document and all agreements
carefully.

 

If we offer you a franchise, we must provide
this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate
in connection with the proposed franchise sale, or sooner if required by applicable law.

 

New York and Rhode Island require that
we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before execution of the franchise
or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan, Oregon, and Washington
required that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise agreement
or other agreement or the payment of any consideration, whichever occurs first.

 

If we do not deliver this Disclosure Document
on time, or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may
have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the applicable state agency listed
in Exhibit A.

 

The franchisor is The Joint Corp., located
at 9383 East Bahia Drive, Suite 100, Scottsdale, Arizona 85260. Its telephone number is (480) 245-5960.

 

The following broker(s) will represent
us in connection with the sale of our franchises: ____________________________________ (Name) at                                              
(Principal Address) and                                  
(Telephone Number).

 

Date of Issuance: May 1, 2013

 

See Exhibit A for our registered agents
authorized to receive service of process.

 

I have received a Franchise Disclosure
Document dated ______________. This Disclosure Document included the following Exhibits:

 

		A.	State Administrators /Agents for Service of Process

		B.	Regional Developer Agreement and Related Agreements

		C.	Table of Contents of Manuals

		D.	Financial Statements

		E.	Confidentiality/Non-Disclosure Agreement

		F.	List of Regional Developers

		G.	General Release Agreement

		H.	Transfer Agreement

		I.	State-Specific Disclosures

		J.	Receipts

 

	 	 	 	 
	Date	 	Signature of Prospective Regional Developer	 

 

	 	 	Print Name:	 	 

 

You may return the signed receipt either by signing, dating,
and mailing it to us at The Joint Corp., located at 9383 East Bahia Drive, Suite 100, Scottsdale, Arizona 85260, or by faxing a
copy of the signed and dated receipt to us at (480) 513-7989.

 

The Joint RD FDD – Exhibit J – ReceiptsExhibit 10.15

 

 

THE JOINT CORP.

 

FRANCHISE AGREEMENT

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	SECTION	 	PAGE

 

	1.	INTRODUCTION	1
	 	 	 
	2.	GRANT OF FRANCHISE	2
	 	2.1	Term; Reference to Exhibit 1	2
	 	2.2	Full Term Performance	3
	 	2.3	Management Agreement with Professional Corporation – Non-Licensed Franchisees	3
	 	2.4	Waiver of Management Agreement	4
	 	2.5	Selection of Premises; No Protected Territory; Reservation of Rights	5
	 	2.6	Renewal of Franchise	5
	 	2.7	Personal Guaranty by Principal Owners; Reference to Exhibit 2	6
	 	 	 	 
	3.	DEVELOPMENT AND OPENING OF THE FRANCHISE	6
	 	3.1	Site Approval; Lease or Purchase of Premises; Opening Timeline; Reference to Exhibit 3	6
	 	3.2	Prototype and Construction Plans and Specifications	7
	 	3.3	Development of the Franchise	7
	 	3.4	Computer System	8
	 	3.5	Equipment, Furniture, Fixtures, Furnishings and Signs	9
	 	3.6	Franchise Opening	9
	 	 	 	 
	4.	TRAINING	9
	 	4.1	General Manager	9
	 	4.2	Training	10
	 	 	 	 
	5.	GUIDANCE; OPERATIONS MANUAL	11
	 	5.1	Guidance and Assistance	11
	 	5.2	Operations Manual	12
	 	5.3	Modifications to System	12
	 	5.4	Advisory Councils	12
	 	 	 	 
	6.	FEES AND COSTS	13
	 	6.1	Initial Franchise Fee	13
	 	6.2	Royalty Fee	13
	 	6.3	Regional and National Advertising Fee	14
	 	6.4	Local Advertising	14
	 	6.5	Grand Opening Costs	15
	 	6.6	Software and Programming Fees	15
	 	6.7	Relocation Fee	15
	 	6.8	Late Payments	15
	 	6.9	Electronic Funds Transfer	16
	 	6.10	Application of Payments	16
	 	6.11	Modification of Payments	17
	 	6.12	Non-Compliance Charge	17

 

The
Joint...The Chiropractic PlaceTM

Franchise
Agreement

    	i

    	 

    

 

	7.	MARKS	17
	 	7.1	Ownership and Goodwill of Marks	18
	 	7.2	Limitations on Franchise Owner’s Use of Marks	18
	 	7.3	Notification of Infringements and Claims	18
	 	7.4	Discontinuance of Use of Marks	18
	 	7.5	Indemnification of Franchise Owner	18
	 	 	 	 
	8.	RELATIONSHIP OF THE PARTIES; INDEMNIFICATION	19
	 	8.1	Independent Contractor; No Fiduciary Relationship	19
	 	8.2	No Liability, No Warranties	19
	 	8.3	Indemnification	19
	 	 	 	 
	9.	CONFIDENTIAL INFORMATION; NON-COMPETITION	20
	 	9.1	Types of Confidential Information	20
	 	9.2	Non-Disclosure Agreement	21
	 	9.3	Non-Competition Agreement	21
	 	 	 	 
	10.	THE JOINT CORP. FRANCHISE OPERATING STANDARDS	22
	 	10.1	Condition and Appearance of the Franchise	22
	 	10.2	Franchise Services and Products	23
	 	10.3	Approved Products, Distributors and Suppliers	24
	 	10.4	Hours of Operation	25
	 	10.5	Specifications, Standards and Procedures	25
	 	10.6	Compliance with Laws and Good Business Practices	25
	 	10.7	Management and Personnel of the Franchise	26
	 	10.8	Insurance	27
	 	10.9	Credit Cards and Other Methods of Payment	28
	 	10.10	Pricing	29
	 	 	 	 
	11.	ADVERTISING	29
	 	11.1	By Company	29
	 	11.2	By Franchise Owner	31
	 	11.3	Regional Advertising Cooperatives	31
	 	11.4	Websites and Other Forms of Advertising Media	31
	 	 	 	 
	12.	ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS	32
	 	 	 
	13.	INSPECTIONS AND AUDITS	33
	 	13.1	Company’s Right to Inspect the Franchise	33
	 	13.2	Company’s Right to Audit	33
	 	 	 	 
	14.	TRANSFER REQUIREMENTS	34
	 	14.1	Organization	34
	 	14.2	Interests in Franchise Owner; Reference to Exhibit 4	34
	 	14.3	Transfer by Company	35
	 	14.4	No Transfer Without Approval	35
	 	14.5	Conditions for Approval of Transfer	36
	 	14.6	Right of First Refusal	38
	 	14.7	Death and Disability	39
	 	14.8	Effect of Consent to Transfer	39
	 	14.9	Consent Not Unreasonably Delayed	39

 

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	15.	TERMINATION OF THE FRANCHISE	39
	 	 	 
	16.	RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE	41
	 	16.1	Payment of Amounts Owed to Company	41
	 	16.2	Marks	41
	 	16.3	De-Identification	41
	 	16.4	Confidential Information	41
	 	16.5	Joint Software	42
	 	16.6	Company’s Option to Purchase the Franchise	42
	 	16.7	Continuing Obligations	43
	 	16.8	Management of the Franchise	43
	 	 	 	 
	17.	ENFORCEMENT	43
	 	17.1	Invalid Provisions; Substitution of Valid Provisions	43
	 	17.2	Unilateral Waiver of Obligations	44
	 	17.3	Written Consents from Company	44
	 	17.4	Lien	44
	 	17.5	No Guarantees	45
	 	17.6	No Waiver	45
	 	17.7	Cumulative Remedies	45
	 	17.8	Specific Performance; Injunctive Relief	45
	 	17.9	Arbitration	46
	 	17.10	Waiver of Punitive Damages and Jury Trial; Limitations of Actions	46
	 	17.11	Governing Law/Consent To Jurisdiction	47
	 	17.12	Binding Effect	47
	 	17.13	No Liability to Others; No Other Beneficiaries	47
	 	17.14	Construction	47
	 	17.15	Joint and Several Liability	48
	 	17.16	Multiple Originals	48
	 	17.17	Timing Is Important	48
	 	17.18	Independent Provisions	48
	 	 	 	 
	18.	NOTICES AND PAYMENTS	48
	 	 	 
	19.	INDEPENDENT PROFESSIONAL JUDGMENT OF YOU AND YOUR GENERAL MANAGER	49
	 	 	 
	20.	ENTIRE AGREEMENT	49

 

	Exhibit 1 - Franchise Agreement Expiration Date/ Projected Franchising Opening Schedule
	Exhibit 2 - Owner’s Guaranty and Assumption of Obligations
	Exhibit 3 - Addendum to Lease Agreement
	Exhibit 4 - Ownership Interests in Franchise Owner

 

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THE JOINT
CORP.

 

FRANCHISE
AGREEMENT

 

This
Franchise Agreement (this or the “Agreement”) is being entered into effective as of the _____ day of _______________,
20__ (the “Agreement Date”). The parties to this Agreement are The Joint Corp., a Delaware corporation (“we,”
“us,” the “Company,” or “The Joint Corp.“); _________________________________________, as
Franchise Owner (“you,” “Franchise Owner,” or “Franchisee”), and, if you are a partnership,
corporation, or limited liability company, your “Principal Owners” (defined below).

 

1.          INTRODUCTION.

 

This
Agreement has been written in an informal style in order to make it more easily readable and to be sure that you become thoroughly
familiar with all of the important rights and obligations the Agreement covers before you sign it. This Agreement includes several
exhibits, all of which are legally binding and are an integral part of the complete Franchise Agreement. In this Agreement, we
refer to The Joint Corp. as “we,” “us,” or the “Company.” We refer to you as “you,”
“Franchise Owner” or “Franchisee.” If you are a corporation, partnership or limited liability company,
you will notice certain provisions that are applicable to those principal shareholders, partners or members on whose business
skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred
to in this Agreement as “Principal Owners.”

 

Through
the expenditure of considerable time, effort and money, we and our affiliates have devised a system for the establishment and
operation of The Joint Corp. business model, a chiropractic location that specializes in affordable, convenient, and accessible
chiropractic care. It is our mission “to improve your quality of life through affordable Chiropractic care.” Our atmosphere
is fun and upbeat, and no appointments are necessary (all of these characteristics are referred to in this Agreement as the “System”).
This business model includes a location model offering all of our franchised services and products (individually, a “Location”
and collectively, the “Locations”). We identify the System by the use of certain trademarks, service marks and other
commercial symbols, including the marks “The Joint...A Chiropractic Place®”, “The Joint...The
Chiropractic PlaceTM” and certain associated designs, artwork and logos, which we may change or add to from time to
time (the “Marks”).

 

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From
time to time we grant to persons who meet our qualifications, franchises to own and operate a The Joint Corp. Location franchise
business that will manage clinics that specialize in providing chiropractic services and products to the general public through
licensed chiropractic professionals (“Clinic(s)”). This Agreement is being presented to you because of the desire
you have expressed to obtain the right to develop, own, and be franchised to operate a The Joint Corp. Location (we will refer
to your The Joint Corp. franchise as the “Franchise” or the “Franchised Business”). You may purchase and
operate your Franchise as a new, start-up Location (a “Start-up Location“), or may convert an existing chiropractic
practice to a The Joint Corp. Location (a “Conversion Location“). In signing this Agreement, you acknowledge that
you have conducted an independent investigation of The Joint Corp. Franchised Business, and recognize that, like any other business,
the nature of it may evolve and change over time, that an investment in a The Joint Corp. Franchised Business involves business
risks, and that the success of this business venture is primarily dependent on your business abilities and efforts.

 

We
expressly disclaim making, and you acknowledge that you have not received or relied on, any guarantee, express or implied, as
to the revenues, profits, or likelihood of success of The Joint Corp. Franchise venture contemplated by this Agreement. You acknowledge
that there have been no representations by us or our affiliates or our or their respective officers, directors, members, employees,
or agents that are inconsistent with the statements made in our current Franchise Disclosure Document concerning the Franchised
Business, or the provisions of this Agreement. You further represent to us, as an inducement to our entering into this Agreement
with you, that there have been no misrepresentations to us in your application for the rights granted by this Agreement, or in
the financial information provided by you and your Principal Owners.

 

2.          GRANT
OF FRANCHISE.

 

2.1           Term;
Reference to Exhibit 1.

 

You
have applied for a franchise to own and operate a The Joint Corp. Location, and we have approved your application in reliance
on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant
to you a Franchise to operate a The Joint Corp. Location offering all products, services, and proprietary programs of ours, in
accordance with all elements of the System, that we may require for The Joint Corp. Locations.

 

You
must operate the Franchise at a mutually agreeable site (the “Premises”) to be identified after the signing of this
Agreement, and to use the System and the Marks in the operation of that Franchise, for a term of 10 years (the “Initial
Term”). The Initial Term will begin on the Agreement Date. (For convenience, the expiration date of the Initial Term is
listed on Exhibit 1.) Termination or expiration of this Agreement will constitute a termination or expiration of
your Franchise. (All references to the “term” of this Agreement refer to the period from the Agreement Date to the
date on which this Agreement actually terminates or expires.)

 

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2.2           Full
Term Performance.

 

You
specifically agree to be obligated to operate the Franchise, perform the obligations of this Agreement, and continuously exert
your best efforts to promote and enhance the business of the Franchise for the full term of this Agreement.

 

2.3           Management
Agreement with Professional Corporation – Non-Licensed Franchisees. 

 

If
you are not a licensed chiropractor, prior to commencing operations of the Franchised Business, you must enter into a management
agreement (“Management Agreement”) with a chiropractic professional corporation (or a professional limited liability
company, if permitted in the state in which the Clinic is located) (a “PC”) whereby you will provide to the PC management
and administrative services and support consistent with the System and as outlined in our form of Management Agreement, a copy
of which is included as an Exhibit to our Disclosure Document, to support the PC's chiropractic practice and its delivery of chiropractic
services and related products to chiropractic patients, consistent with all applicable laws and regulations.

 

The
PC shall employ and control the chiropractors and other chiropractic personnel that will provide the actual chiropractic services
required to be delivered at and through the Clinic. You shall not provide any actual chiropractic services, nor shall you supervise,
direct, control or suggest to, the PC or its chiropractors or employees the manner in which the PC provides or may provide chiropractic
services to its patients. You acknowledge and agree that we will not provide any chiropractic services, nor will we supervise,
direct, control or suggest to, the PC or its chiropractors or employees the manner in which the PC provide chiropractic services
to its patients.

 

Due
to various federal and state laws regarding the practice of chiropractic medicine, and the ownership and operation of chiropractic
practices and health care businesses that provide chiropractic services, you understand and acknowledge that that you, as non-chiropractor
Location franchisee, shall not engage in any practices that are, or may appear to be, the practice of chiropractic medicine. You
acknowledge that the PC must offer all chiropractic services in accordance with the Management Agreement and the System.

 

You
must use our standard form of Management Agreement, however, you may negotiate the monetary terms and, with our written consent,
certain other terms of the relationship with the PC. We will not unreasonably withhold our approval to requested changes in the
Management Agreement. You must obtain our written approval of the final Management Agreement prior to your execution. We must
approve the PC candidate. You shall ensure that the PC offers all chiropractic services in accordance with the Management Agreement
and the System. If you are not able to find a suitable chiropractor to create, own and staff the PC, we will attempt to help you
find a suitable PC. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised
Business and during the Initial Term of this Agreement.

 

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If
you are a licensed chiropractor, or part of a PC owned by licensed chiropractors, you do not need to execute a Management Agreement.
However, you are still responsible for compliance with all laws application to the operation of a chiropractic Clinic and your
Location franchise.

 

2.4           Waiver
of Management Agreement. 

 

In
certain states, it may be permissible under the existing laws that may be applicable to chiropractic professionals and/or practices,
such as chiropractic clinics, for a non-chiropractor to both own and operate a Clinic and a Location Franchise, including hiring
chiropractic and other professional personnel and providing chiropractic services to patients at the Clinic. If you determine
that the laws that would apply to a Clinic in your state would permit you to do so, you may request that we waive certain of the
requirements of the Franchise Agreement related to separating the operation of the chiropractic aspects of the Clinic from the
management aspects. In particular, you (i) would not enter into a Management Agreement with a PC that, as a separate entity, would
otherwise operate the Clinic and provide all chiropractic services, and (ii) you would not be restricted from hiring and supervising
chiropractic professionals. Any waiver, or any modification of our standards, would be subject to compliance with all applicable
laws and regulations. If we agree to do a waiver, you must enter into an Amendment to Waive Management Agreement (“Waiver
Agreement”), a copy of which is attached as an exhibit to our Disclosure Document. Under the Waiver Agreement, you will
agree that, instead of entering into the Management Agreement with a separate PC, you will (a) operate the Clinic, including performing
all responsibilities and obligations of the “PC” under the Management Agreement, and (b) manage the Clinic as required
in this Agreement and by performing all the responsibilities and obligations of the “Company” under the Management
Agreement.

 

You
are responsible for operating in full compliance with all laws that apply to a Clinic, and you must make your own determination
as to your legal compliance obligations. Additionally, the laws applicable to your Clinic may change, and if there are any chiropractic
regulations or other laws that would render your operation of the Clinic through a single entity (or otherwise) in violation of
any medical regulations, you must immediately advise us of such change and of the your proposed corrective action to comply with
chiropractic regulations, including (if applicable) entering into a Management Agreement with a PC. Similarly, if we discover
any such laws, upon providing you notice of such laws, you agree to make such changes as are necessary to comply with medical
regulations, including (if applicable) entering into a Management Agreement with a PC.

 

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2.5           Selection
of Premises; No Protected Territory; Reservation of Rights.

 

You
and we will mutually select the location of the Premises upon or after the signing of this Agreement. You acknowledge that the
Franchise granted by this Agreement gives you the right to operate your Franchise only at the Premises. Although we will not seek
to operate or grant others the right to operate a The Joint Corp. Location within the same general area as the Premises, we make
no guarantee of any protected territory. Except as otherwise provided in this Paragraph 2.5, we retain all rights with respect
to The Joint Corp. Location franchises, the Marks and the System, including (by way of example only and not as a limitation):
(a) the right to operate or grant others the right to operate The Joint Corp. Location franchises in any location on terms
and conditions we deem appropriate; and (b) the right to operate or offer other healthcare-related companies or franchises
or enter into other lines of business offering similar or dissimilar products or services under trademarks or service marks other
than the Marks, in any location.

 

2.6           Renewal
of Franchise.

 

(a)          Franchise
Owner’s Right to Renew. Subject to the provisions of subparagraph 2.6(b) below, and if you have substantially complied
with all provisions of this Agreement and all other agreements between us, on expiration of the Initial Term, if you refurbish
and decorate the Premises, replace fixtures, furnishings, wall decor, furniture, equipment, and signs and otherwise modify the
Franchise in compliance with specifications and standards then applicable under new or renewal franchises for The Joint Corp.
Location franchises, you will have the right to renew the Franchise for one (1) additional term of ten (10) years (the “Renewal
Term”).

 

(b)          Notice
of Deficiencies and Other Requirements. At least one (1) year before the expiration of the Initial Term, we agree to give
you written notice of any deficiencies in your operation or in the historical performance of the Franchise that could cause us
not to renew the Franchise. If we will permit renewal, our notice will state what actions, if any, you must take to correct the
deficiencies in your operation of the Franchise or of the Premises, and will specify the time period in which those deficiencies
must be corrected or other requirements satisfied. Renewal of the Franchise will be conditioned on your continued compliance with
all the terms and conditions of this Agreement up to the date of expiration. If we send a notice of non-renewal, it will state
the reasons for our refusal to renew.

 

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(c)          Renewal
Agreement; Releases. Should you choose to renew the Franchise, you must provide us with written notice of that intent no earlier
than two (2) years and no later than one (1) year before the expiration of the Initial Term. To renew the Franchise, the Company,
you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily
using in the grant or renewal of franchises for the operation of The Joint Corp. Location Franchises (with appropriate modifications
to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will
be payable upon renewal of the Franchise. However, you must pay to us a renewal fee equal to 25% of our then-current initial franchise
fee for Start-up Locations. You and your Principal Owners and your and their spouses must also execute general releases, in a
form satisfactory to us, of any and all claims against us and our affiliates, and our and their respective owners, officers, directors,
employees, and agents.

 

2.7           Personal
Guaranty by Principal Owners; Reference to Exhibit 2.

 

Each
of the Principal Owners and their spouses (where applicable), will be required to execute a personal guaranty (the “Guaranty”),
guaranteeing the Franchise’s liabilities and obligations to the Company. A copy of the Guaranty is incorporated herein as
Exhibit 2.

 

3.          DEVELOPMENT
AND OPENING OF THE FRANCHISE

 

3.1           Site
Approval; Lease or Purchase of Premises; Opening Timeline; Reference to Exhibit 3.

 

(a)          You
will use your best efforts to locate and select a proposed site for the Premises that is acceptable to us as suitable for the
operation of the Franchise, which must be reviewed and approved by us within six (6) months of the Agreement Date. Our review
and approval process may take up to thirty (30) days, so we recommend you submit your proposed site to us within one hundred fifty
(150) days of the Agreement Date. You must submit to us, in the form we specify, a description of the site and such other information
or materials as we may reasonably require. We will not unreasonably withhold approval of a site that meets our standards for general
location and neighborhood, traffic patterns, parking size, layout and other physical characteristics, for The Joint Corp. Location
franchises. Our approval of a site shall not constitute, nor be deemed, a judgment as to the likelihood of success of a The Joint
Corp. Location at such location, or a judgment as to the relative desirability of such location in comparison to other locations.
If you fail to identify a mutually-agreeable site within the aforementioned six (6) month period, we may terminate this Agreement.

 

(b)          Once
we have approved the proposed site of the Premises for your Franchise, you must obtain lawful possession of the Premises through
lease or purchase within thirty (30) days of our approval of the Premises. You agree that you will not execute a lease without
our advance written approval of the lease terms. The lease for the Premises must include the Addendum to Lease, attached hereto
as Exhibit 3, permitting us to take possession of the Premises under certain conditions if this Agreement is terminated
or if you violate the terms of the lease.

 

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(c)          Unless
we agree otherwise, you must open your franchise for business no later than nine (9) months from the Effective Date of this Agreement.

 

3.2           Prototype
and Construction Plans and Specifications.

 

We will furnish to
you prototype plans and specifications for your Location, reflecting our requirements for design, decoration, furnishings, furniture,
layout, equipment, fixtures and signs for The Joint Corp. Locations, which may be in the form of actual plans for an existing or
proposed Location with which we are involved. Using an architect we designate or approve, it will then be your responsibility to
have the plans and specifications modified to comply with all ordinances, building codes, permit requirements, and lease requirements
and restrictions applicable to the Premises. You must submit final construction plans and specifications to us for our approval
before you begin construction at the Premises, and must construct the Franchise location in accordance with those approved plans
and specifications.

 

3.3           Development
of the Franchise.

 

You agree at your own
expense to do the following by the Opening Deadline defined in Exhibit 1: (1) secure all financing required to fully
develop the Franchise; (2) obtain all required building, utility, sign, health, sanitation and business permits and licenses
and any other required permits and licenses; (3)  construct the Franchise location according to the approved construction
plans and specifications; (4) decorate the Franchise location in compliance with the approved plans and specifications; (5) purchase
and install all required equipment, furniture, furnishings and signs; (6) cause the training requirements of Section 4
to be completed; (7) purchase an opening inventory of products and other supplies and materials; (8)  provide proof,
in a form satisfactory to us, that your operation of the Franchise at the Franchise location does not violate any applicable state
or local zoning or land use laws, ordinances, or regulations, or any restrictive covenants that apply to such location; (9) provide
proof, in a form satisfactory to us, that you (and/or your General Manager, as defined in Section 4.1, if any) are legally authorized
and have all licenses necessary to perform all of the services to be offered by your Franchise, and that your organizational structure
is consistent with all legal requirements; (10) provide proof, in a format satisfactory to us, that you have obtained all required
insurance policies, and have name us, as an additional insurance under all such policies; (11) submit to us a completed copy of
the grand opening checklist we provide to you; (12) do any other acts necessary to open the Franchise for business; (13) obtain
our approval to open the Franchise for business; and (14) open the Franchise for business.

 

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 3.4           Computer
System.

 

(a)          General
Requirements. You agree to use in the development and operation of the Franchise the computer terminals/billing systems and
operating software (“Computer System”) that we specify from time to time. You acknowledge that we may modify such
specifications and the components of the Computer System from time to time. As part of the Computer System, we may require you
to obtain specified computer hardware and/or software, including without limitation a license to use proprietary software developed
by us or others. Our modification of such specifications for the components of the Computer System may require you to incur costs
to purchase, lease and/or obtain by license new or modified computer hardware and/or software, and to obtain service and support
for the Computer System during the term of this Agreement. You acknowledge that we cannot estimate the future costs of the Computer
System (or additions or modifications thereto), and that the cost to you of obtaining the Computer System (or additions or modifications
thereto), including software, may not be fully amortizable over the remaining term of this Agreement. Nonetheless, you agree to
incur such costs in connection with obtaining the computer hardware and software comprising the Computer System (or additions or
modifications thereto). Within sixty (60) days after you receive notice from us, you agree to obtain the components of the Computer
System that we designate and require. You further acknowledge and agree that we and our affiliates have the right to charge a reasonable
systems fee for software or systems installation services; modifications and enhancements specifically made for us or our affiliates
that are licensed to you; and other maintenance and support Computer System-related services that we or our affiliates furnish
to you. You will have sole responsibility for: (1) the acquisition, operation, maintenance, and upgrading of your Computer
System; (2) the manner in which your Computer System interfaces with our computer system and those of third parties; and (3) any
and all consequences that may arise if your Computer System is not properly operated, maintained, and upgraded.

 

(b)          Software.
As a franchisee of The Joint Corp., we will provide to you The Joint Corp.’s proprietary office management software (the
“Joint Software”), which you will be required to install onto the Computer System and use in the daily operation of
the Franchise. In addition, we may, at any time and from time to time, contract with one or more software providers, business service
providers, or other third parties (individually, a “Service Provider”) to develop, license, or otherwise provide to
or for the use and benefit of you and other The Joint Corp. Franchises certain software, software applications, and software maintenance
and support services related to the Computer System that you must or may use in accordance with our instructions with respect to
your Computer System.

 

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3.5           Equipment,
Furniture, Fixtures, Furnishings and Signs.

 

You agree to use in
the development and operation of the Franchise only those brands, types, and/or models of equipment, furniture, fixtures, furnishings,
and signs we have approved.

 

3.6           Franchise
Opening.

 

You agree not to open
the Franchise for business until: (1) all of your obligations under Paragraphs 3.1 through 3.4 of this Section have been
fulfilled; (2) we determine that the Franchise has been constructed, decorated, furnished, equipped, and stocked with materials
and supplies in accordance with plans and specifications we have provided or approved; (3) you and any of your Franchise’s
employees whom we require complete our pre-opening Initial Training (as defined herein) to our satisfaction; (4) the Initial
Franchise Fee (as defined herein) and all other amounts due to us have been paid; (5) you have furnished us with copies of
all insurance policies required by Paragraph 10.8 of this Agreement, or have provided us with appropriate alternative evidence
of insurance coverage and payment of premiums as we have requested; and (6) we have approved any marketing, advertising, and promotional
materials you desire to use, as provided in Paragraph 11.2 of this Agreement.

 

The Company will provide,
at our expense, an opening supervisor to be on site at your Location to assist you with your operational efficiency, staff training,
Location setup and grand opening. The opening supervisor will be on site one (1) day before the opening of your first Location
and for one (1) day after the opening of your first Location franchise.

 

4.          TRAINING.

 

4.1           General
Manager.

 

At your request, we
may, but are not obligated to, agree for you to employ a general manager to operate the Franchise (“General Manager”).
The term “General Manager” means an individual with primary day-to-day responsibility for the Franchise’s operations,
and may or may not be you (if you are an individual) or a Principal Owner, officer, director, or employee of yours (if you are
other than an individual). We may or may not require that the General Manager have an equity interest in the Franchise. The General
Manager will be obligated to devote his or her full time, best efforts, and constant personal attention to the Franchise’s
operations, and must have full authority from you to implement the System at the Franchise. You must not hire any General Manager
or successor General Manager without first receiving our written approval of such General Manager’s qualifications. Each
General Manager and successor General Manager must attend and complete our Initial Training (as defined herein). No General Manager
may have any interest in or business relationship with any business competitor of your franchise. Each General Manager must sign
a written agreement, in a form approved by us, to maintain confidential our Confidential Information described in Paragraph 9.1,
and to abide by the covenants not to compete described in Paragraph 9.3. You must forward to us a copy of each such signed agreement.
If we determine, in our sole discretion, during or following completion of the Initial Training program, that your General Manager
(if any) is not qualified to act as General Manager of the Franchise, then we have the right to require you to choose (and obtain
our approval of) a new individual for that position.

 

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4.2           Training.

 

You acknowledge that
it is very important to the operation of the Franchise that you and your employees receive appropriate training. To that end, you
agree as follows:

 

(a)          No
later than thirty (30) days before the Franchise opens for business, you must attend our initial training program for your Franchise
(the “Initial Training”) at the time and place we designate. You (if you are an individual) or at least one of your
Principal Owners (if you are a legal entity) must complete the Initial Training to our satisfaction. If you employ a General Manager
other than yourself or one of your Principal Owners, that General Manager must also complete the Initial Training to our satisfaction.
Other employees may complete the Initial Training at your sole discretion and expense, provided you first obtain our approval and
subject to availability of facilities and materials. The Initial Training may include classroom instruction and Franchise operation
training, and will be furnished at our training facility in Scottsdale, Arizona, a The Joint Corp. Franchise location we designate,
your Franchise location, and/or at another location we designate. Our Initial Training programs may be different for each employee
depending on their responsibilities at the Franchise. There will be no tuition charge for the persons whom we require to attend
any Initial Training program or for any additional personnel of your choosing. All persons who attend our Initial Training must
attend and complete the Initial Training to our satisfaction. If we, in our sole discretion, determine that any General Manager
or employee whom we require to attend any Initial Training program is unable to satisfactorily complete such program, then you
must not hire that person, and must hire a substitute General Manager or employee (as the case may be), who must enroll in the
Initial Training program within fifteen (15) days thereafter, and complete the Initial Training to our satisfaction.

 

(b)          You
agree to have your General Manager (if any) and/or other employees who attend our Initial Training complete additional training
programs at places and times as we may request from time to time during the term of this Agreement.

 

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(c)          In
addition to providing the Initial Training described above, we reserve the right to offer and hold such additional ongoing training
programs and franchise owners meetings regarding such topics and at such times and locations as we may deem necessary or appropriate.
We also reserve the right to make any of these training programs mandatory for you and/or designated owners, employees, and/or
representatives of yours. We reserve the right to charge you a daily attendance fee in an amount to be set by us for each attendee
of yours who attends any mandatory or optional training program or owners meeting. If we offer any such mandatory training programs,
then you or your designated personnel must attend a minimum of seventy-five percent (75%) of the programs offered on an annual
basis. In addition to any other remedies we may have, if you fail to attend any required training, we reserve the right to charge
you a non-attendance fee of up to $400 per day for each day of mandatory training programs or meetings you miss or fail to attend.

 

(d)          You
agree to pay all wages and compensation owed to, and travel, lodging, meal, transportation, and personal expenses incurred by,
all of your personnel who attend our Initial Training and/or any mandatory or optional training we provide.

 

(e)          We
may require your employees to take and pass an online computer training course. While there is no cost to take such training, we
may require all employees and staff to pass such training to our satisfaction before they may begin working at your Franchise location.

 

(f)          The
Franchise’s General Manager (if any) and other employees shall obtain all certifications and licenses required by law in
order to perform their responsibilities and duties for the Franchise.

 

5.          GUIDANCE;
OPERATIONS MANUAL.

 

5.1           Guidance
and Assistance.

 

During the term of
this Agreement, we may from time to time furnish you guidance and assistance with respect to: (1) specifications, standards,
and operating procedures used by The Joint Corp. Location franchises; (2) purchasing approved equipment, furniture, furnishings,
signs, materials and supplies; (3) development and implementation of local advertising and promotional programs; (4) general
operating and management procedures; (5) establishing and conducting employee training programs for your Franchise; and (6) changes
in any of the above that occur from time to time. This guidance and assistance may, in our discretion, be furnished in the form
of bulletins, written reports and recommendations, operations manuals and other written materials (the “Operations Manual”),
and/or telephone consultations and/or personal consultations at our offices or your Franchise. If you request—and if we agree
to provide—any additional, special on-premises training of your personnel or other assistance in operating your Franchise,
then you agree to pay a daily training fee in an amount to be set by us, and all expenses we incur in providing such training or
assistance, including any wages or compensation owed to, and travel, lodging, transportation, and living expenses incurred by,
our Company personnel.

 

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5.2           Operations
Manual.

 

The Operations Manual
we lend to you will contain mandatory and suggested specifications, standards, and operating procedures that we prescribe from
time to time for your Franchise, as well as information relative to other obligations you have in the operation of the Franchise.
The Operations Manual may be composed of or include audio recordings, video recordings, computer disks, compact disks, and/or other
written or intangible materials. We may make all or part of the Manual available to you through various means, including the Internet.
A previously delivered Operations Manual may be superseded from time to time with replacement materials to reflect changes in the
specifications, standards, operating procedures and other obligations in operating the Franchise. You must keep your copy of the
Operations Manual current, and if you and we have a dispute over the contents of the Manual, then our master copy of the Manual
will control. You agree that you will not at any time copy any part of the Operations Manual, permit it to be copied, disclose
it to anyone not having a need to know its contents for purposes of operating your Franchise, or remove it from the Franchise location
without our permission. If your copy of the Operations Manual is lost, destroyed, or significantly damaged, then you must obtain
a replacement copy for us at our then-applicable charge.

 

5.3           Modifications
to System.

 

We will continually
be reviewing and analyzing developments in the healthcare, and chiropractic industries, as well as developments in fields related
to small-business management, and based upon our evaluation of this information, may make changes in the System, including but
not limited to, adding new components to services offered and equipment used by The Joint Corp. Location franchises. Moreover,
changes in laws regulating the services offered by The Joint Corp. franchises may (a) require us to restructure our franchise program,
(b) require your General Manager (if any) and employees to obtain additional licenses or certifications, (c) require you to
retain or establish relationships with additional professionals and specialists in the chiropractic and/or healthcare industries,
and/or (d) require you to modify your ownership or organizational structure. You agree, at our request, to modify the operation
of the Franchise to comply with all such changes, and to be solely responsible for all related costs.

 

5.4           Advisory
Councils.

 

You agree to participate
in, and, if required, become a member of any advisory councils or similar organizations we form or organize for The Joint Corp.
Location franchises.

 

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6.          FEES
AND COSTS.

 

6.1           Initial
Franchise Fee.

 

You agree to pay us
the initial franchise fee of Twenty-Nine Thousand and No/100 Dollars ($29,000.00) (the “Initial Franchise Fee”) when
you sign this Agreement. In recognition of the expenses we incur in furnishing assistance and services to you, you agree that we
will have fully earned the Initial Franchise Fee, and that is due and non-refundable when you sign this Agreement.

 

6.2           Royalty
Fee.

 

You agree to pay us
a continuing franchise royalty fee (“Royalty Fee”) in the amount of seven percent (7%) of the gross revenues of the
Franchise for all periods, with a minimum monthly amount of Seven Hundred and No/100 Dollars ($700.00). This fee will be payable
on the 1st and 16th of each month based on the Franchise’s gross revenues. If the 1st or
16th of the month fall on a weekend or holiday, then the fee is payable on the next business day. If, at the end of
any calendar month, the total Royalty Fee collected for the preceding month is less than $700.00, the difference between the amount
collected and $700.00 shall be due on the tenth (10th) day of the following month. The terms “gross revenues” shall,
for purposes of this Agreement, mean the total of all revenue and receipts derived from the operation of the Franchise, including
all amounts received at or away from the site of the Franchise, or through the business the Franchise conducts (such as fees for
chiropractic care, fees for the sale of any service or product, gift certificate sales, and revenue derived from products sales,
whether in cash or by check, credit card, debit card, barter or exchange, or other credit transactions); and excludes only sales
taxes collected from customers and paid to the appropriate taxing authority, and all customer refunds and credits the Franchise
actually makes. For the avoidance of doubt, you specifically acknowledge that “gross revenues” includes the gross revenues
of any P.C. or any of P.C.’s clinics that are managed by you pursuant to a Management Agreement, even if those revenues are
not recognized on your books, and that you are responsible for determining those revenues and paying the Royalty Fee as if those
revenues were recognized on your books. You and we acknowledge and agree that the Royalty Fee represents compensation paid by you
to us for the guidance and assistance we provide and for the use of our Marks, Confidential Information (as defined herein), know-how,
and other intellectual property we allow you to use under the terms of this Agreement. The Royalty Fee does not represent payment
for the referral of customers to you, and you acknowledge and agree that the services we offer to you and our other The Joint Corp.
franchisees do not include the referral of customers.

 

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6.3           Regional
and National Advertising Fee.

 

Recognizing the value
of advertising to the goodwill and public image of The Joint Corp. Location franchises, we may, in our sole discretion, establish,
maintain and administer one or more regional and/or national advertising funds (the “Ad Fund(s)”) for such advertising
as we may deem necessary or appropriate in our sole discretion. We may, however, choose to use only one Ad Fund to meet the needs
of regional, multi-regional, and national advertising and promotional programs. If we establish an Ad Fund, you agree to contribute
to the Ad Fund a percentage of gross revenues of the Franchise in an amount we designate from time to time by notice to you, up
to a maximum of two percent (2%) of the gross revenues of the Franchise. As of the date of this Agreement, the current required
contribution to the Ad Fund is one percent (1%) of the gross revenues of the Franchise. In the event we choose to change the required
contribution amount, which we may do at our sole and absolute discretion, up to a maximum of two percent (2%) of gross revenues,
we will provide you with thirty (30) days’ advance written notice of the change. These advertising fees (”Advertising
Fees”) will be payable with and at the same time as your Royalty Fees payable under Paragraph 6.2 above. A further description
of the Ad Fund and your obligations with respect to advertising and promoting the Franchise is found in Section 11 of this
Agreement.

 

6.4           Local
Advertising.

 

(a)          By
Franchisee. In addition to the Advertising Fees set forth in Paragraph 6.3, which will be used by us to promote The Joint Corp.
on a regional and national level, you agree to spend a certain amount on advertising in your local market area. This amount must
equal the greater of (a) Three Thousand and No/100 Dollars ($3,000.00); or (b) five percent (5%) of the Franchise’s gross
revenues for each month during the term of this Agreement (the “Local Advertising Requirement”). All proposed local
advertising must be submitted to and approved by us before you enter into any advertising agreements. At our request, you must
provide us with any documentation we request showing that you have met your monthly Local Advertising Requirement. 

 

(b)          Regional
Advertising Cooperative. In the event that more than one The Joint Corp. Location franchise is located in an area of dominant
influence (“ADI”), we reserve the right to form a regional advertising cooperative (the “Regional Ad Co-op”),
require you to join the Regional Ad Co-op and contribute to its funding. An ADI is a geographic market designation that defines
a broadcast media market, consisting of all counties in which the home market stations receive a preponderance of viewing. We reserve
the right to determine the amount to be contributed by each member of the Regional Ad Co-op as necessary. The required contributions
to any Regional Ad Co-op will not be credited against the Local Advertising Requirement set forth in Paragraph 6.4(a) or 11.2.

 

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6.5           Grand
Opening Costs.

 

During sixty (60) day
period that begins thirty (30) days prior to the opening of your Franchise, and ending thirty (30) days after the opening of your
Franchise (the “Grand Opening Period”), you will be required to expend at least Ten Thousand and No/100 Dollars
($10,000.00) in verifiable marketing costs to publicize the grand opening of your Franchise. These costs may include, but are not
limited to, signage, local advertising, flyers, promotions, and giveaways. Upon conclusion of the Grand Opening Period, you must
send to us a report detailing the amounts spent to publicize the grand opening of your franchise during the Grand Opening Period.
All proposed grand opening advertising must be submitted to and approved by us. At our request, you must provide us with any documentation
we request showing that you have met the required spend requirement for your Grand Opening.

 

6.6           Software
and Programming Fees.

 

The initial purchase
and installation fee for the Joint Software is Four Hundred Ninety-Five and No/100 Dollars ($495.00), which is payable along with
the Initial Franchise Fee. For each month during the term of this Agreement, the on-going license fee for the Joint Software is
Two Hundred Seventy-Five and No/100 Dollars ($275.00), which will be debited from the Account on the fifth (5th) day of each month
for the preceding month.

 

6.7           Relocation
Fee.

 

If you must relocate
the Premises of your Location for any reason, you must pay to us a Franchise Relocation Fee (the “Relocation Fee”)
of Two Thousand Five Hundred and No/100 Dollars ($2,500.00). The Relocation Fee will help the Company defray the costs of approving
a new location, reviewing and approving plans for the new location, and updating Company records and marketing materials to reflect
the new location.

 

6.8           Late
Payments.

 

All Royalty Fees,
Advertising Fees, amounts due from you for purchases from us or our affiliates, and other amounts which you owe us or our affiliates
(unless otherwise provided for in a separate agreement between us or our affiliates) will begin to accrue interest after their
respective due dates at the lesser of (i) the highest commercial contract interest rate permitted by state law, and (ii) the rate
of eighteen percent (18%) per annum. In addition to any accruing interest, all late payments will incur a late charge of Fifty
and No/100 Dollars ($50.00) per day until the payment is made. Payments due us or our affiliates will not be deemed received until
such time as funds from the deposit of any check by us or our affiliates is collected from your account. You acknowledge that
the inclusion of this Paragraph in this Agreement does not mean we agree to accept or condone late payments, nor does it indicate
that we have any intention to extend credit to, or otherwise finance your operation of the Franchise. We have the right to require
that any payments due us or our affiliates be made by certified or cashier’s check in the event that any payment by check
is not honored by the bank upon which the check is drawn. We also reserve the right to charge you a fee of One Hundred and No/100
Dollars ($100.00) for any payment by check that is not honored by the bank upon which it is drawn.

 

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6.9           Electronic
Funds Transfer.

 

We have the right to
require you to participate in an electronic funds transfer program under which Royalty Fees, Advertising Fees, and any other amounts
payable to us or our affiliates are deducted or paid electronically from your bank account (the “Account”). In the
event you are required to authorize us to initiate debit entries, you agree to make the funds available in the Account for withdrawal
by electronic transfer no later than the payment due date. The amount actually transferred from the Account to pay Royalty Fees
and Advertising Fees will be based on the Franchise’s gross revenues as reported in the Franchise’s practice management
software. If you have not properly input the Franchise’s gross revenues for any reporting period, then we will be authorized
to debit the Account in an amount equal to one hundred twenty percent (120%) of the Royalty Fee, Advertising Fee, and other amounts
transferred from the Account for the last reporting period for which a report of the Franchise’s gross revenues was provided
to us. If at any time we determine that you have under-reported the Franchise’s gross revenues or underpaid any Royalty Fee
or Advertising Fee due us under this Agreement, then we will be authorized to initiate immediately a debit to the Account in the
appropriate amount, plus applicable interest, in accordance with the foregoing procedure. Any overpayment will be credited, without
interest, against the Royalty Fee, Advertising Fee, and other amounts we otherwise would debit from your account during the following
reporting period. Our use of electronic funds transfers as a method of collecting Royalty Fees and Advertising Fees due us does
not constitute a waiver of any of your obligations to provide us with weekly reports as provided in Section 12, nor shall
it be deemed a waiver of any of the rights and remedies available to us under this Agreement.

 

6.10         Application
of Payments.

 

When we receive a payment
from you, we have the right in our sole discretion to apply it as we see fit to any past due indebtedness of yours due to us or
our affiliates, whether for Royalty Fees, Advertising Fees, purchases, interest, or for any other reason, regardless of how you
may designate a particular payment should be applied.

 

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6.11         Modification
of Payments.

 

If, by operation of
law or otherwise, any fees contemplated by this Agreement cannot be based upon gross revenues, then you and we agree to negotiate
in good faith an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement,
then the Company reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations
set forth in Section 16 shall apply.

 

6.12         Non-Compliance
Charge.

 

In addition to our
other rights and remedies, we may charge you a non-compliance charge in an amount up to five hundred dollars ($500) per violation
by you of any term or condition of this Agreement, including, without limitation, failure to pay (or to have adequate amounts available
for electronic transfer of) amounts owed to Franchisor or Franchisor’s affiliates or failure to timely provide required reports,
or failure to obtain prior approval from Franchisor whenever Franchisor approval is required (i.e., advertising).

 

7.          MARKS.

 

7.1           Ownership
and Goodwill of Marks.

 

You acknowledge that
your right to use the Marks is derived solely from this Agreement, and is limited to your operation of the Franchise pursuant to
and in compliance with this Agreement and all applicable standards, specifications, and operating procedures we prescribe from
time to time during the term of the Franchise. You understand and acknowledge that our right to regulate the use of the Marks includes,
without limitation, any use of the Marks in any form of electronic media, such as Websites (as defined herein) or web pages, or
as a domain name or electronic media identifier. If you make any unauthorized use of the Marks, it will constitute a breach of
this Agreement and an infringement of our rights in and to the Marks. You acknowledge and agree that all your usage of the Marks
and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this
Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in
compliance with this Agreement). All provisions of this Agreement applicable to the Marks will apply to any additional trademarks,
service marks, commercial symbols, designs, artwork, or logos we may authorize and/or license you to use during the term of this
Agreement.

 

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7.2           Limitations
on Franchise Owner’s Use of Marks.

 

You agree to use the
Marks as the sole trade identification of the Franchise, except that you will display at the Franchise location a notice, in the
form we prescribe, stating that you are the independent owner of the Franchise pursuant to a Franchise Agreement with us. You agree
not to use any Mark as part of any corporate or trade name or with any prefix, suffix, or other modifying words, terms, designs,
or symbols (other than logos and additional trade and service marks licensed to you under this Agreement), or in any modified form.
You also shall not use any Mark or any commercial symbol similar to the Marks in connection with the performance or sale of any
unauthorized services or products, or in any other manner we have not expressly authorized in writing. You agree to display the
Marks in the manner we prescribe at the Franchise and in connection with advertising and marketing materials, and to use, along
with the Marks, any notices of trade and service mark registrations we specify. You further agree to obtain any fictitious or assumed
name registrations as may be required under applicable law.

 

7.3           Notification
of Infringements and Claims.

 

You agree to immediately
notify us in writing of any apparent infringement of or challenge to your use of any Mark, or claim by any person of any rights
in any Mark or similar trade name, trademark, or service mark of which you become aware. You agree not to communicate with anyone
except us and our counsel in connection with any such infringement, challenge, or claim. We have the right to exclusively control
any litigation or other proceeding arising out of any actual or alleged infringement, challenge, or claim relating to any Mark.
You agree to sign any documents, render any assistance, and do any acts that our attorneys say is necessary or advisable in order
to protect and maintain our interests in any litigation or proceeding related to the Marks, or to otherwise protect and maintain
our interests in the Marks.

 

7.4           Discontinuance
of Use of Marks.

 

If it becomes advisable
at any time in our sole judgment for the Franchise to modify or discontinue the use of any Mark, or use one or more additional
or substitute trade or service marks, including the Marks used as the name of the Franchise, then you agree, at your sole expense,
to comply with our directions to modify or otherwise discontinue the use of the Mark, or use one or more additional or substitute
trade or service marks, within a reasonable time after our notice to you.

 

7.5           Indemnification
of Franchise Owner.

 

We agree to indemnify
you against, and reimburse you for, all damages for which you are held liable in any trademark infringement proceeding arising
out of your use of any Mark pursuant to and in compliance with this Agreement, and for all costs you reasonably incur in the defense
of any such claim in which you are named as a party, so long as you have timely notified us of the claim, and have otherwise complied
with this Agreement.

 

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8.          RELATIONSHIP
OF THE PARTIES; INDEMNIFICATION.

 

8.1           Independent
Contractor; No Fiduciary Relationship.

 

This Agreement does
not create a fiduciary relationship between you and us. You and we are independent contractors, and nothing in this Agreement is
intended to make either party a general or special agent, joint venture, partner, or employee of the other for any purpose whatsoever.
You agree to conspicuously identify yourself in all your dealings with customers, suppliers, public officials, Franchise personnel,
and others as the owner of the Franchise pursuant to a Franchise Agreement with us, and to place any other notices of independent
ownership on your forms, business cards, stationery, advertising, and other materials as we may require from time to time.

 

8.2           No
Liability, No Warranties.

 

We have not authorized
or empowered you to use the Marks except as provided by this Agreement, and you agree not to employ any of the Marks in signing
any contract, check, purchase agreement, negotiable instrument or legal obligation, application for any license or permit, or in
a manner that may result in liability to us for any indebtedness or obligation of yours. Except as expressly authorized by this
Agreement, neither you nor we will make any express or implied agreements, warranties, guarantees or representations, or incur
any debt, in the name of or on behalf of the other, or represent that your and our relationship is other than that of franchisor
and franchisee.

 

8.3           Indemnification.

 

We will not assume
any liability or be deemed liable for any agreements, representations, or warranties you make that are not expressly authorized
under this Agreement, nor will we be obligated for any damages to you or any person or property directly or indirectly arising
out of the operation of the business you conduct pursuant to this Agreement, whether or not caused by your negligent or willful
action or failure to act. We will have no liability for any sales, use, excise, income, gross receipts, property, or other taxes
levied against you or your assets, or on us, in connection with the business you conduct, or any payments you make to us pursuant
to this Agreement (except for our own income taxes). We will not assume any liability or be deemed liable for any agreements you
enter with any third-parties, whether or not they are an approved or required vendor. You agree to indemnify, defend, and hold
us, our affiliates and our and their respective owners, directors, officers, employees, agents, successors, and assigns (individually,
an “Indemnified Party,” and collectively, the “Indemnified Parties”), harmless against, and to reimburse
such Indemnified Parties for, all such obligations, damages, and taxes for which any Indemnified Party may be held liable, and
for all costs the Indemnified Party reasonably may incur in the defense of any such claim brought against the Indemnified Party,
or in any such action in which the Indemnified Party may be named as a party, including without limitation actual and consequential
damages; reasonable attorneys’, accountants’, and/or expert witness fees; cost of investigation and proof of facts;
court costs; other litigation expenses; and travel and living expenses. Each Indemnified Party has the right to defend any such
claim against the Indemnified Party. You further agree to hold us harmless and indemnify and defend us for all costs, expenses,
and/or losses we incur in enforcing the provisions of this Agreement, defending our actions taken relating to this Agreement, or
resulting from your breach of this Agreement, including without limitation reasonable arbitrator’s and attorneys’ fees
(including those for appeal), unless, after legal proceedings are completed, you are found to have fulfilled and complied with
all of the terms of this Agreement. Your indemnification obligations described above will continue in full force and effect after,
and notwithstanding, the expiration or termination of this Agreement.

 

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9.          CONFIDENTIAL
INFORMATION; NON-COMPETITION.

 

9.1           Types
of Confidential Information.

 

We possess certain
unique confidential and proprietary information and trade secrets consisting of the following categories of information, methods,
techniques, products, and knowledge developed by us, including but not limited to: (1) services and products offered and sold
at The Joint Corp. franchises; (2) knowledge of sales and profit performance of any one or more The Joint Corp. franchises;
(3) knowledge of sources of products sold at The Joint Corp. franchises, advertising and promotional programs, and image and
decor; (4) the Joint Software; (5) methods, techniques, formats, specifications, procedures, information, systems, and knowledge
of, and experience in, the development, operation, and franchising of The Joint Corp. franchises; and (6) the selection and
methods of training employees. We will disclose much of the above-described information to you in advising you about site selection,
providing our Initial Training, the Operations Manual, the Joint Software, and providing guidance and assistance to you under this
Agreement. In addition, in the course of the operation of your Franchise, you or your employees may develop ideas, concepts, methods,
or techniques of improvement relating to the Franchise that you disclose to us, and that we may then authorize you to use in the
operation of your Franchise, and may use or authorize others to use in other The Joint Corp. franchises owned or franchised by
us or our affiliates. Any such information disclosed to or developed by you will be referred to in this Agreement as “Confidential
Information”.

 

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9.2           Non-Disclosure
Agreement.

 

You agree that your
relationship with us does not vest in you any interest in the Confidential Information, other than the right to use it in the development
and operation of the Franchise, and that the use or duplication of the Confidential Information in any other business would constitute
an unfair method of competition. You acknowledge and agree that the Confidential Information belongs to us, may contain trade secrets
belonging to us, and is disclosed to you or authorized for your use solely on the condition that you agree, and you therefore do
agree, that you (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the
absolute confidentiality of the Confidential Information during and after the term of this Agreement; (3) will not make unauthorized
copies of any portion of the Confidential Information disclosed in written form or another form that may be copied or duplicated;
and (4) will adopt and implement all reasonable procedures we may prescribe from time to time to prevent unauthorized use
or disclosure of the Confidential Information, including without limitation restrictions on disclosure to your employees, and the
use of non-disclosure and non-competition agreements we may prescribe or approve for your shareholders, partners, members, officers,
directors, employees, independent contractors, or agents who may have access to the Confidential Information.

 

9.3           Non-Competition
Agreement.

 

You agree that we would
be unable to protect the Confidential Information against unauthorized use or disclosure, and would be unable to encourage a free
exchange of ideas and information among The Joint Corp. franchises, if franchise owners of The Joint Corp. franchises were permitted
to hold interests in any competitive businesses (as described below). Therefore, during the term of this Agreement, neither you,
nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, shall perform
services for, or have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer,
employee, manager, consultant, representative, or agent in, any business that offers products or services the same as or similar
to those offered or sold at The Joint Corp. Location franchises. The ownership of one percent (1%) or less of a publicly traded
company will not be deemed to be prohibited by this Paragraph. Upon expiration or termination of this Agreement for any reason,
you agree not to engage in a competitive business for a period of two (2) years after the termination or expiration and within
twenty-five (25) miles of your Franchise Premises or any other The Joint Corp. Location franchise location.

 

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10.         THE
JOINT CORP. FRANCHISE OPERATING STANDARDS.

 

10.1         Condition
and Appearance of the Franchise.

 

You agree that:

 

(a)          neither
the Franchise nor the Premises will be used for any purpose other than the operation of the Franchise in compliance with this Agreement;

 

(b)          you
will maintain the condition and appearance of the Franchise; its equipment, furniture, furnishings, and signs; and the Premises
in accordance with our standards and consistent with the image of a The Joint Corp. Location franchise as an efficiently operated
business offering high quality services, and observing the highest standards of cleanliness, sanitation, efficient, courteous service
and pleasant ambiance, and in that connection will take, without limitation, the following actions during the term of this Agreement:
(1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior
and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete equipment, furniture,
furnishings and signs;

 

(c)          you
will not make any material alterations to the Premises or the appearance of the Franchise, as originally developed, without our
advance written approval. If you do so, we have the right, at our option and at your expense, to rectify alterations we have not
previously approved;

 

(d)          you
will promptly replace or add new equipment when we reasonably specify in order to meet changing standards or new methods of service;

 

(e)          you
will expend at least Six Thousand and No/100 Dollars ($6,000.00) every four (4) years in remodeling, expansion, redecorating and/or
refurnishing of the Premises and the Franchise, if deemed necessary by us (any changes to the decoration or furnishing of the Premises
must be approved by us);

 

(f)          on
notice from us, you will engage in remodeling, expansion, redecorating and/or refurnishing of the Premises and the Franchise to
reflect changes in the operations of The Joint Corp. franchises that we prescribe and require of new franchisees, provided that
(1) no material changes will be required unless there are at least two (2) years remaining on the Initial Term of the Franchise
(any changes to the decoration or furnishing of the Premises must be approved by us); and (2) we have required the proposed
change in at least twenty-five percent (25%) of all similarly situated Company and affiliate-owned The Joint Corp. Locations, and
have undertaken a plan to make the proposed change in the balance of such Company and affiliate-owned Locations (any expenditures
incurred pursuant to this Paragraph 10.1(f) shall apply to the requirement in Paragraph 10.1(e));

 

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(g)          you
will place or display at the Premises (interior and exterior) only those signs, emblems, designs, artwork, lettering, logos, and
display and advertising materials that we from time to time approve; and

 

(h)          if
at any time in our reasonable judgment, the general state of repair, appearance, or cleanliness of the premises of the Franchise
or its fixtures, equipment, furniture, or signs do not meet our standards, then we shall have the right to notify you specifying
the action you must take to correct the deficiency. If you do not initiate action to correct such deficiencies within (ten) 10
days after receipt of our notice, and then continue in good faith and with due diligence, a bona fide program to complete any required
maintenance or refurbishing, then we shall have the right, in addition to all other remedies available to us at law or under this
Agreement, to enter the Premises or the Franchise and perform any required maintenance or refurbishing on your behalf, and you
agree to reimburse us on demand.

 

10.2         Franchise
Services and Products.

 

You agree that (a) the
Franchise will offer for sale all services and products that we from time to time specify for Locations, (b) the Franchise
will offer and sell approved services and products only in the manner we have prescribed; (c) you will not offer for sale
or sell at the Franchise, the Premises, or any other location any services or products we have not approved; (d) all products
will be offered at retail prices, and you will not offer or sell any products at wholesale prices; (e) you will not use the
Premises for any purpose other than the operation of the Franchise; and (f) you will discontinue selling and offering for
sale any services or products that we at any time decide (in our sole discretion) to disapprove in writing. In the event that you
use, sell or distribute unauthorized products or services, and do not cease the use, sale, or distribution of unauthorized services
or products within ten (10) days after written notice is given to you, we reserve the right to terminate this agreement and/or
charge you a fee of One Hundred and No/100 Dollars ($100.00) for each day that you fail to comply with our demand to cease the
use, sale or distribution of unauthorized products or services, which is a reasonable estimate of the damages we would incur from
your continued use, sale or distribution of unauthorized products or services, and not a penalty. You agree to maintain an inventory
of approved products sufficient in quantity and variety to realize the full potential of the Franchise. We may, from time to time,
conduct market research and testing to determine consumer trends and the saleability of new services and products. You agree to
cooperate by participating in our market research programs, test marketing new services and products in the Franchise, and providing
us with timely reports and other relevant information regarding such market research. In connection with any such test marketing,
you agree to offer a reasonable quantity of the products or services being tested, and effectively promote and make a reasonable
effort to sell them.

 

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10.3         Approved
Products, Distributors and Suppliers.

 

We have developed or
may develop various unique products or services that may be prepared according to our formulations. We have approved, and will
continue to periodically approve, specifications for suppliers and distributors (which may include us and/or our affiliates) for
products or services required to be purchased by, or offered and sold at, The Joint Corp. Location franchises, that meet our standards
and requirements, including without limitation standards and requirements relating to product quality, prices, consistency, reliability,
and customer relations. You understand and acknowledge we will not be liable to you or anyone else for any damages or claims arising
out of or resulting from the acts or omissions any supplier and distributor of products or services, whether or not such supplier
or distributor is an approved or required supplier or distributor of products or services. You agree that the Franchise will: (1) purchase
any required products or services in such quantities as we designate; (2) utilize such formats, formulae, and packaging for
products or services as we prescribe; and (3) purchase all designated products and services only from distributors and other
suppliers we have approved. In the event we designate a required supplier or distributor during the term of this Agreement, or
any subsequent franchise agreement, you must begin to use such required supplier or distributor with thirty (30) days of the date
we notify you that you must use such supplier or distributor, unless we designate a longer period for you to switch or convert
over to such supplier or distributor. Your failure or refusal to do so shall constitute a breach of this Agreement.

 

We may approve a single
distributor or other supplier (collectively “supplier”) for any product, and may approve a supplier only as to certain
products. We may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services
for any group of The Joint Corp. Locations franchised or operated by us. 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),
or other criteria, and may be temporary, pending our continued evaluation of the supplier from time to time.

 

If you would like to
purchase any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier.
We have the right to inspect the proposed supplier’s facilities, and require that product samples from the proposed supplier
be delivered, at our option, either directly to us, or to any independent, certified laboratory that we may designate, for testing.
We may charge you a supplier evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test)
to make the evaluation. We reserve the right to periodically re-inspect the facilities and products of any approved supplier, and
revoke our approval if the supplier does not continue to meet any of our criteria.

 

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We and/or our affiliates
may be an approved supplier of certain products or services to be purchased by you for use and/or sale by the Franchise. We and
our affiliates reserve the right to charge any licensed manufacturer engaged by us or our affiliates a royalty to manufacture products
for us or our affiliates, or to receive commissions or rebates from vendors that supply goods or services to you. We or our affiliates
may also derive income from our sale of products or services to you, and may sell these items at prices exceeding our or their
costs in order to make a profit on the sale.

 

10.4         Hours
of Operation.

 

You agree to keep the
Franchise open for business at such times and during such hours as we may prescribe from time to time.

 

10.5         Specifications,
Standards and Procedures.

 

You agree to comply
with all mandatory specifications, standards, and operating procedures relating to the appearance, function, cleanliness, sanitation
and operation of the Franchise. Any mandatory specifications, standards, and operating procedures that we prescribe from time to
time in the Operations Manual, or otherwise communicate to you in writing, will constitute provisions of this Agreement as if fully
set forth in this Agreement. All references to “this Agreement” include all such mandatory specifications, standards,
and operating procedures.

 

10.6         Compliance
with Laws and Good Business Practices.

 

You agree to secure
and maintain in force in your name all required licenses, permits and certificates relating to the operation of the Franchise.
You also agree to operate the Franchise in full compliance with all applicable laws, ordinances, and regulations, including without
limitation all government regulations relating to worker’s compensation insurance, unemployment insurance, and withholding
and payment of federal and state income taxes, social security taxes, and sales taxes.

 

All advertising you
employ must be completely factual, in good taste (in our judgment), and conform to the highest standards of ethical advertising
and all legal requirements. You agree that in all dealings with us and any of our affiliates, other franchisees, your customers,
your suppliers, and public officials, you will adhere to the highest standards of honesty, integrity, fair dealing and ethical
conduct. You further agree to refrain from any business or advertising practice that may be harmful to the business of the Company,
the Franchise, and/or the goodwill associated with the Marks and other The Joint Corp. franchises.

 

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You must notify us
in writing within 5 days of (1) the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ,
injunction, award, or decree of any court, agency, or other governmental unit, that may adversely affect your and/or the Franchise’s
operation, financial condition, or reputation; and/or (2) your receipt or knowledge any notice of violation of any law, ordinance,
or regulation relating to health or safety.

 

10.7         Management
and Personnel of the Franchise.

 

Unless we approve your
employment of a General Manager to operate the Franchise as provided in Paragraph 4.1, you must actively participate in the actual,
on-site, day-to-day operation of the Franchise, and devote as much of your time as is reasonably necessary for the efficient operation
of the Franchise. If you are other than an individual, then at least one (1) Principal Owner, director, officer, or other employee
of you whom we approve must comply with the this requirement. If we agree that you may employ a General Manager, then the General
Manager must fulfill this requirement. Any General Manager shall each obtain all licenses and certifications required by law before
assuming his or her responsibilities at the Franchise. You will ensure that your employees and independent contractors of the Franchise
have any licenses as may be required by law, and hold or are pursuing any licenses, certifications, and/or degrees required by
law or by us in the Operations Manual, as updated from time to time. You will be exclusively responsible for the terms of your
employees’ and independent contractors’ employment and compensation, and for the proper training of your employees
and independent contractors in the operation of the Franchise. You must establish any training programs for your employees and/or
independent contractors that we may prescribe in writing from time to time. You must require all employees and independent contractors
to maintain a neat and clean appearance, and conform to the standards of dress that we specify in the Operations Manual, as updated
from time to time. Each of your employees and independent contractors must sign a written agreement, in a form approved by us,
to maintain confidential our Confidential Information, proprietary information, and trade secrets as described in Paragraph 9.1,
and to abide by the covenants not to compete described in Paragraph 9.3. You must forward to us a copy of each such signed agreement.
All of your employees and independent contractors must render prompt, efficient and courteous service to all customers of the Franchise.
You agree not to recruit or hire, either directly or indirectly, any employee (or a former employee, for sixty (60) days after
his or her employment has ended) of any The Joint Corp. Location franchise operated by us, our affiliates, or another The Joint
Corp. franchise owner without first obtaining the written consent of us, our affiliate, or the franchise owner that currently employs
(or previously employed) such employee. If you violate this provision, in addition to any other right or remedy we may have,
you agree to pay the employee’s current or former employer twice the employee’s annual salary, plus all costs and attorneys’
fees incurred as a result of the violation. This amount is set at twice the employee’s annual salary because it is a reasonable
estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely
the actual damages from such a breach.

 

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10.8         Insurance.

 

Before you open the
Franchise and during any Term of this Agreement, you must maintain in force, under policies of insurance written on an occurrence
basis issued by carriers with an A.M. Best rating of A-VIII or better approved by us, and in such amounts as we may determine from
time to time: (1) comprehensive public, professional, product, medical malpractice and motor vehicle liability insurance against
claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the
Franchise or otherwise in conjunction with your conduct of the Franchise Business pursuant to this Agreement, under one or more
policies of insurance containing minimum liability coverage amounts as set forth in the Operations Manual; (2) general casualty
insurance, including theft, cash theft, fire and extended coverage, vandalism and malicious mischief insurance, for the replacement
value of the Franchise and its contents, and any other assets of the Franchise; (3) worker’s compensation and employer’s
liability insurance as required by law, with limits equal to or in excess of those required by statute; (4) business interruption
insurance for a period adequate to reestablish normal business operations, but in any event not less than six (6) months; (5) any
other insurance required by applicable law, rule, regulation, ordinance or licensing requirements; and (6) umbrella liability
coverage with limits of not less than $1,000,000/$3,000,000 or such other amounts that we may establish in the Operations Manual.
You must purchase such insurance coverage(s) only from our approved or designated supplier(s). We may periodically increase or
decrease the amounts of coverage required under these insurance policies, and/or require different or additional kinds of insurance,
including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability,
higher damage awards, or other relevant changes in circumstances.

 

Each insurance policy
must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds, and must
provide us with thirty (30) days’ advance written notice of any material modification, cancellation, or expiration of the
policy. Deductibles must be in reasonable amounts, and are subject to review and written approval by us. You must provide us with
copies of policies evidencing the existence of such insurance concurrently with execution of this Agreement and prior to each subsequent
renewal date of each insurance policy, along with certificates evidencing such insurance. You are responsible for any and all claims,
losses or damages, including to third persons, originating from, in connection with, or caused by your failure to name us as an
additional insured on each insurance policy. You agree to defend, indemnify and hold us harmless of, from, and with respect to
any such claims, loss or damage arising out of your failure to name us as additional insured, which indemnity shall survive the
termination or expiration and non-renewal of this Agreement.

 

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Prior
to the expiration of the term of each insurance policy, you must furnish us with a copy of a renewal or replacement insurance policy
and appropriate certificates of insurance. If you at any time fail or refuse to maintain any insurance coverage required by us
or to furnish satisfactory evidence thereof, then we, at our option and in addition to our other rights and remedies under this
Agreement, may, but need not, obtain such insurance coverage on your behalf, and you shall reimburse us on demand for any costs
or premiums paid or incurred by us, including any administrative fees or surcharges that we may incur. If you fail to pay us within
ten (10) days of our demand for reimbursement, we reserve the right to debit your account the amounts owed to us for any premiums
paid on your behalf for such insurance coverage along with any other costs, surcharges expenses and fees we incur to obtain such
coverage on your behalf or on behalf of your franchise. We reserve the right to require you to provide us with an application for
insurance (in a form acceptable to our required supplier for insurance) for any medical professional that has been offered a position
to work in a Franchise location so that we may, if you fail to do so, procure any necessary insurance coverage for such medical
professional. 

 

Notwithstanding
the existence of such insurance, you are and will be responsible for all loss or damage and contractual liability to third persons
originating from or in connection with the operation of the Franchise, and for all claims or demands for damages to property or
for injury, illness or death of persons directly or indirectly resulting therefrom; and you agree to defend, indemnify and hold
us harmless of, from, and with respect to any such claims, loss or damage, which indemnity shall survive the termination or expiration
and non-renewal of this Agreement. In addition to the requirements of the foregoing paragraphs of this Paragraph 10.8, you must
maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with
your lease or purchase of the Premises.

 

Your obligation to
maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance
we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under Section 7 of
this Agreement.

 

10.9         Credit
Cards and Other Methods of Payment.

 

You must at all times
have arrangements in existence with Visa, Master Card, American Express, Discover and any other credit and debit card issuers or
sponsors, check verification services, and electronic fund transfer systems that we designate from time to time, in order that
the Franchise may accept customers’ credit and debit cards, checks, and other methods of payment. We may require you to obtain
such services through us or our affiliates.

 

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10.10         Pricing.

 

To
the extent permitted by applicable law, we may periodically establish maximum and/or minimum prices for services and products that
the Franchise location offers, including without limitation, prices for promotions in which all or certain The Joint Franchise
locations participate. If we establish such prices for any services or products, you agree not to exceed or reduce that price,
but will charge the price for the service or product that we establish. You hereby agree to apply any pricing matrix or schedule
established by us. If you wish to offer an alternate pricing matrix, you must obtain our prior written approval. In states where
you must enter a Management Agreement (Section 2.3), this provision shall be modified, to the extent legally permissible, and/or
legally construed to conform to the laws of the state where your Franchise location will be located. 

 

11.         ADVERTISING.

 

11.1         By
Company.

 

As stated in Paragraph
6.3, due to the value of advertising and the importance of promoting the public image of The Joint Corp. Location franchises, we
will establish, maintain, and administer one or more Ad Funds to support and pay for national, regional, and/or local marketing
programs that we deem necessary, desirable, or appropriate to promote the goodwill and image of all The Joint Corp. Location franchises.
You will contribute to the Ad Fund the Advertising Fee set forth in Section 6.3. We agree that any Locations owned by us or our
affiliates will contribute to the Ad Fund on at least the same basis as you do.

 

We will be entitled
to direct all advertising programs financed by the Ad Fund, with sole discretion over the creative concepts, materials, and endorsements
used in them, and the geographic, market, and media placement and allocation of the programs. We will have the sole discretion
to use the Ad Fund to pay the costs of preparing and producing video, audio, and written advertising materials; administering regional,
multi-regional and/or national advertising programs; including purchasing direct mail and other media advertising; employing advertising
agencies and supporting public relations, market research, and other advertising and marketing firms; and paying for advertising
and marketing activities that we deem appropriate, including the costs of participating in any national or regional trade shows.
and providing advertising and marketing materials to The Joint Corp. Location franchises. We may in our discretion use the Ad Fund
to engage in advertising and promotional programs that benefit only one or several regionals, and not necessarily all Location
franchises Ad Funds. The Ad Fund will furnish you with approved advertising materials at its direct cost of producing those advertising
materials. The amounts you contribute to the Ad Fund will not be used for placement of advertising in television, radio, newspaper
or other media. Rather, any collective media placement will be conducted through the local and regional advertising cooperatives
described in Section 11.3.

 

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The Ad Fund will be
accounted for separately from other funds of the Company, and will not be used to defray any of our general operating expenses,
except for any reasonable salaries, administrative costs, and overhead we may incur in activities reasonably related to the administration
of the Ad Fund and its advertising programs (including without limitation conducting market research, preparing advertising and
marketing materials, and collecting and accounting for contributions to the Ad Fund). We may spend in any fiscal year an amount
greater or less than the total contributions to the Ad Fund in that year. We may cause the Ad Fund to borrow from us or other lenders
to cover deficits of the Ad Fund, or to invest any surplus for future use by the Ad Fund. You authorize us to collect for remission
to the Ad Fund any advertising monies or credits offered by any supplier to you based upon purchases you make. We will prepare
an annual statement of monies collected and costs incurred by the Ad Fund and will make it available to you on written request.

 

You understand and
acknowledge that the Ad Fund will be intended to maximize recognition of the Marks and patronage of The Joint Corp. Location franchises.
Although we will endeavor to use the Ad Fund to develop advertising and marketing materials, and to place advertising in a manner
that will benefit all The Joint Corp. Location franchises, we undertake no obligation to ensure that expenditures by the Ad Fund
in or affecting any geographic area are proportionate or equivalent to contributions to the Ad Fund by The Joint Corp. Location
franchises operating in that geographic area, or that any The Joint Corp. Location franchise will benefit directly or in proportion
to its contribution to the Ad Fund from the development of advertising and marketing materials or the placement of advertising.
Except as expressly provided in this Paragraph, we assume no direct or indirect liability or obligation to you with respect to
the maintenance, direction, or administration of the Ad Fund.

 

We will have the right
to terminate the Ad Fund by giving you thirty (30) days’ advance written notice. All unspent monies on date of termination
will be divided between the Company and the contributing The Joint Corp. Location franchisees in proportion to our and their respective
contributions. At any time thereafter, we will have the right to reinstate the Ad Fund under the same terms and conditions as described
in this Section (including the rights to terminate and reinstate the Ad Fund) by giving you thirty (30) days’ advance written
notice of reinstatement.

 

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11.2         By
Franchise Owner.

 

You must spend, in
addition to any contributions to the Ad Fund, a minimum of the greater of (a) Three Thousand and No/100 Dollars ($3,000.00); or
(b) five percent (5%) of the Franchise’s gross revenues for each month during the term of this Agreement, as outlined in
Paragraph 6.4, for local advertising, promotion and marketing. You must provide us (in a form we approve or designate) evidence
of your required local advertising, marketing and promotional expenditures by the thirtieth (30th) day of each month, for the preceding
calendar month, along with a year-to-date report of the total amount spent on local advertising.

 

You agree to list and
advertise the Franchise in each of the classified telephone directories distributed within your market area, in those business
classifications as we prescribe from time to time, using any standard form of classified telephone directory advertisement we may
provide.

 

On each occasion before
you use them, samples of all local advertising and promotional materials not prepared or previously approved by us must be submitted
to us for approval. If you do not receive our written disapproval within fifteen (15) days from the date we receive the materials,
the materials will be deemed to have been approved. You agree not to use any advertising or promotional materials that we have
disapproved. You will be solely responsible and liable to ensure that all advertising, marketing, and promotional materials and
activities you prepare comply with applicable federal, state, and local law, and the conditions of any agreements or orders to
which you may be subject.

 

11.3         Regional
Advertising Cooperatives.

 

In the event that more
than one The Joint Corp. Location franchise is located in an area of dominant influence (“ADI”), we reserve the right
to form a regional advertising cooperative (the “Regional Ad Co-op”). We also reserve the right to require you to join
the Regional Ad Co-op and to contribute to its funding. We reserve the right to determine the amount to be contributed by each
member of the Regional Ad Co-op as necessary. The required contributions to any Regional Ad Co-op will not be credited against
the Local Advertising Requirement set forth in Paragraphs 6.4(a) and 11.2.

 

11.4         Websites
and Other Forms of Advertising Media.

 

You acknowledge and
agree that any Website or Other Forms of Advertising Media (as defined below) will be deemed “advertising” under this
Agreement, and will be subject to, among other things, the need to obtain our prior written approval in accordance with Paragraphs
7.2 and 11.2. As used in this Agreement, the term or reference to “Website or Other Forms of Advertising Media” means
any interactive system, including but not limited to all types of online communications, virtual applications, social media, or
the like, including but not limited to Groupon, Living Social, Facebook, Twitter, etc., that you operate or use, or authorize others
to operate or use, and that refer to the Franchise, the Marks, us, and/or the System. The term or reference Website or Other Forms
of Advertising Media includes, but is not limited to, Internet and World Wide Web home pages. In connection with any Website or
Other Forms of Advertising Media, you agree to the following:

 

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(a)          Before
establishing any Website or Other Form of Advertising Media, you will submit to us a sample of such Website or Other Form of Advertising
Media format and information in the form and manner we may require.

 

(b)          You
will not establish or use any Website or Other Forms of Advertising Media without our prior written approval.

 

(c)          In
addition to any other applicable requirements, you must comply with our standards and specifications for Website or Other Forms
of Advertising Media as we prescribe in the Operations Manual or otherwise in writing, including any specifications relating to
the use of organic and paid search engine optimization, keyword and landing page management. If we require, you will establish
a website as part of our corporate website and/or establish electronic links to our corporate website.

 

(d)          If
you propose any material revision to Website or Other Forms of Advertising Media or any of the information contained therein, you
will submit each such revision to us for our prior written approval.

 

12.         ACCOUNTING,
REPORTS AND FINANCIAL STATEMENTS.

 

You agree to maintain,
at your own expense, the Joint Software and accounting software, to act as a bookkeeping, accounting, and record keeping system
for the Franchise. The Joint Software includes the capability of being polled by our central computer system, which you agree to
permit. With respect to the operation and financial condition of the Franchise, we will pull from the Joint Software (if available),
or require you to provide from your accounting software in a form we designate, or in accordance with General Acceptably Accounting
Principles (“GAAP”), as the case may be, the following: (1) by Tuesday of each week, an electronic report of the Franchise’s
gross revenues for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records
that we may require; (2) by the thirtieth (30th) day of each month, a profit and loss statement for the preceding
calendar month, and a year-to-date profit and loss statement and balance sheet; (3) within ninety (90) days after the end
of your fiscal year, a fiscal year-end balance sheet, and an annual profit and loss statement for that fiscal year, reflecting
all year-end adjustments; and (4) such other reports as we require from time to time (collectively, the “Reports”).
You agree to input all Franchise transactions into the Joint Software and your accounting software in a timely manner to ensure
that all Reports are accurate. If it is determined that any information was omitted from the Joint Software or your accounting
software was input inaccurately, or you have failed to provide us any required Reports, we may charge a non-refundable accounting
fee of One Hundred and No/100 Dollars ($100.00), payable in a lump sum by the fifth (5th) day of the month following the month
during which the inaccurate report was submitted or for any late Reports. You agree to maintain and furnish upon our request complete
copies of federal and state income tax returns you file with the Internal Revenue Service and state tax departments, reflecting
revenues and income of the Franchise or the corporation, partnership, or limited liability company that holds the Franchise. We
reserve the right to require you to have audited or reviewed financial statements prepared by a certified public accountant on
an annual basis. You agree to retain hard copies of all records for a minimum of four (4) years.

 

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13.         INSPECTIONS
AND AUDITS.

 

13.1         Company’s
Right to Inspect the Franchise.

 

To determine whether
you and the Franchise are complying with this Agreement and the specifications, standards, and operating procedures we prescribe
for the operation of the Franchise, we or our agents have the right, at any reasonable time and without advance notice to you,
to: (1) inspect the Premises; (2) observe the operations of the Franchise for such consecutive or intermittent periods
as we deem necessary; (3) interview personnel of the Franchise; (4) interview customers of the Franchise; and (5) inspect
and copy any books, records and documents relating to the operation of the Franchise. You agree to fully cooperate with us in connection
with any of those inspections, observations and interviews. You agree to present to your customers any evaluation forms we periodically
prescribe, and agree to participate in, and/or request that your customers participate in, any surveys performed by or on our behalf.
Based on the results of any such inspections and audits and your other reports, we may provide to you such guidance and assistance
in operating your Franchise as we deem appropriate.

 

13.2         Company’s
Right to Audit.

 

We have the right at
any time during business hours, and without advance notice to you, to inspect and audit, or cause to be inspected and audited,
the business records, bookkeeping and accounting records, sales and income tax records and returns and other records of the Franchise,
and the books and records of any corporation, limited liability company, or partnership that holds the Franchise. You agree to
fully cooperate with our representatives and any independent accountants we may hire to conduct any inspection or audit. If the
inspection or audit is necessary because of your failure to furnish any reports, supporting records, other information or financial
statements as required by this Agreement, or to furnish such reports, records, information, or financial statements on a timely
basis, or if an understatement of gross revenues for any period is determined by an audit or inspection to be greater than two
percent (2%), then you agree to pay us all monies owed, plus interest of one and one-half percent (1.5%) per month, and reimburse
us for the cost of such inspection or audit, including without limitation any attorneys’ fees and/or accountants’ fees
we may incur, and the travel expenses, room and board, and applicable per diem charges for our employees or contractors. The above
remedies are in addition to all our other remedies and rights under this Agreement or under applicable law.

 

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14.         TRANSFER
REQUIREMENTS.

 

14.1         Organization.

 

If you are a corporation,
partnership or limited liability company (or if this Agreement is assigned to a corporation, partnership or limited liability company
with our approval), you represent and warrant to us that you are and will continue to be throughout the term of this Agreement,
duly organized and validly existing in good standing under the laws of the state of your incorporation, registration or organization,
that you are qualified to do business and will continue to be qualified to do business throughout the term of this Agreement in
all states in which you are required to qualify, that you have the authority to execute, deliver and carry out all of the terms
of this Agreement, and that during the term of this Agreement the only business you (i.e., the corporate, partnership or limited
liability entity) will conduct will be the development, ownership and operation of the Franchise.

 

14.2         Interests
in Franchise Owner; Reference to Exhibit 4.

 

You and each Principal
Owner represent, warrant and agree that all “Interests” in Franchise Owner are owned in the amount and manner described
in Exhibit 4. No Interests in Franchise Owner will, during the term of this Agreement, be “public” securities
(i.e., securities that require, for their issuance, registration with any state or federal authority). (An “Interest”
is defined to mean any shares, membership interests, or partnership interests of Franchise Owner and any other equitable or legal
right in any of Franchise Owner’s stock, revenues, profits, rights or assets. When referring to Franchise Owner’s rights
or assets, an “Interest” means this Agreement, Franchise Owner’s rights under and interest in this Agreement,
any The Joint Corp. franchise, or the revenues, profits or assets of any The Joint Corp. franchise.) You and each Principal Owner
also represent, warrant, and agree that no Principal Owner’s Interest has been given as security for any obligation (i.e.,
no one has a lien on or security interest in a Principal Owner’s Interest), and that no change will be made in the ownership
of an Interest other than as expressly permitted by this Agreement or as we may otherwise approve in writing. You and each Principal
Owner agree to furnish us with such evidence as we may request from time to time to assure ourselves that the Interests of Franchise
Owner and each of your Principal Owners remain as permitted by this Agreement, including a list of all persons or entities owning
any Interest, as defined above. If you have transferred your Interests in violation of this Agreement you shall be considered in
breach of this Agreement.

 

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14.3         Transfer
by Company.

 

This Agreement is fully
transferable by us and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor
to our interests in this Agreement.

 

14.4         No
Transfer Without Approval.

 

You understand and
acknowledge that the rights and duties created by this Agreement are personal to you and that we have entered into this Agreement
in reliance on the individual or collective character, skill, aptitude, attitude, business ability, and financial capacity of you
and your Principal Owners. Accordingly, neither this Agreement nor any part of your interest in it, nor any Interest (as defined
in Paragraph 14.2) of Franchise Owner or a Principal Owner, may be transferred (see definition below) without our advance
written approval if such transfer will result in the Principal Owner(s) set forth in Exhibit 4 holding less than a seventy-five
percent (75%) Interest in Franchise Owner. Any Transfer that is made without our approval will constitute a breach of this Agreement
and convey no rights to or interests in this Agreement, you, the Franchise, or any other The Joint Corp. franchise.

 

As used in this Agreement
the term “Transfer” means any voluntary, involuntary, direct or indirect assignment, sale, gift, exchange, grant of
a security interest, or occurrence of any other event which would or might change the ownership of any Interest, and includes,
without limitation: (1) the Transfer of ownership of capital stock, partnership interest or other ownership interest (including
the granting of options (such as stock options or any option which give anyone ownership rights now or in the future); (2) merger
or consolidation, or issuance of additional securities representing an ownership interest in Franchise Owner; (3) sale of
common stock of Franchise Owner sold pursuant to a private placement or registered public offering; (4) Transfer of an Interest
in a divorce proceeding or otherwise by operation of law; or (5) Transfer of an Interest by will, declaration of or transfer
in trust, or under the laws of intestate succession.

 

We will not unreasonably
withhold consent to a Transfer of an Interest by a Principal Owner to a member of his or her immediate family or to your key employees,
so long as all Principal Owners together retain a “controlling Interest” (i.e., the minimum ownership percentage listed
in Exhibit 4), although we reserve the right to impose reasonable conditions on the Transfer as a requirement for our consent.

 

Interests owned by
persons other than the Principal Owners (“minority owners”) may be Transferred without our advance consent unless the
Transfer would give that transferee and any person or group of persons affiliated or having a common interest with the transferee
more than a collective twenty-five percent (25%) Interest in Franchise Owner, in which case our advance written approval for the
Transfer must be obtained. Your formal partnership, corporation or other formation documents and all stock certificates, partnership
units or other evidence of ownership must recite or bear a legend reflecting the transfer restrictions of this Paragraph 14.4.

 

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14.5         Conditions
for Approval of Transfer.

 

If you and your Principal
Owners are in full compliance with this Agreement, we will not unreasonably withhold our approval of a Transfer that meets all
the applicable requirements of this Section 14. The person or entity to whom you wish to make the Transfer, or its principal owners
(“Proposed New Owner”), must be individuals of good moral character and otherwise meet our then-applicable standards
for The Joint Corp. Location franchisees. If you propose to Transfer this Agreement, the Franchise or its assets, or any Interest,
or if any of your Principal Owners proposes to Transfer a controlling Interest in you or make a Transfer that is one of a series
of Transfers which taken together would constitute the Transfer of a controlling Interest in you, then all of the following conditions
must be met before or at the time of the Transfer:

 

(a)          the
Proposed New Owner must have sufficient business experience, aptitude, and financial resources to operate the Franchise;

 

(b)          you
must pay any amounts owed for purchases from us and our affiliates, and any other amounts owed to us or our affiliates which are
unpaid;

 

(c)          the
Proposed New Owner’s directors and such other personnel as we may designate must have successfully completed our Initial
Training program, and shall be legally authorized and have all licenses necessary to perform the services offered by the Franchise.
The Proposed New Owner shall be responsible for any wages and compensation owed to, and the travel and living expenses (including
all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;

 

(d)          if
your lease for the Premises requires it, the lessor must have consented to the assignment of the lease of the Premises to the Proposed
New Owner;

 

(e)          you
(or the Proposed New Owner) must pay us a Transfer fee equal to seventy-five percent (75%) of the then current initial franchise
fee we charge to new Start-up Location franchisees, and must reimburse us for any reasonable expenses incurred by us in investigating
and processing any Proposed New Owner where the Transfer is not consummated for any reason;

 

(f)          you
and your Principal Owners and your and their spouses must execute a general release (in a form satisfactory to us) of any and all
claims you and/or they may have against us, our affiliates, and our and our affiliates’ respective officers, directors, employees,
and agents;

 

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(g)          we
must approve the material terms and conditions of the proposed Transfer, including without limitation that the price and terms
of payment are not so burdensome as to adversely affect the operation of the Franchise;

 

(h)          the
Franchise and the Premises shall have been placed in an attractive, neat and sanitary condition;

 

(i)          you
and your Principal Owners must enter into an agreement with us providing that all obligations of the Proposed New Owner to make
installment payments of the purchase price (and any interest on it) to you or your Principal Owners will be subordinate to the
obligations of the Proposed New Owner to pay any amounts payable under this Agreement or any new Franchise Agreement that we may
require the Proposed New Owner to sign in connection with the Transfer;

 

(j)          you
and your Principal Owners must enter into a non-competition agreement wherein you agree not to engage in a competitive business
for a period of two (2) years after the Transfer and within twenty-five (25) miles of your Franchise Premises or any other The
Joint Corp. Location franchise location;

 

(k)          the
Franchise shall have been determined by us to contain all equipment and fixtures in good working condition, as were required at
the initial opening of the Franchise. The Proposed New Owner shall have agreed, in writing, to make such reasonable capital expenditures
to remodel, equip, modernize and redecorate the interior and exterior of the premises in accordance with our then existing plans
and specifications for a The Joint Corp. Location franchise, and shall have agreed to pay our expenses for plan preparation or
review, and site inspection;

 

(l)          upon
receiving our consent for the Transfer or sale of the Franchise, the Proposed New Owner shall agree to assume all of your obligations
under this Agreement in a form acceptable to us, or, at our option, shall agree to execute a new Franchise Agreement with us in
the form then being used by us. We may, at our option, require that you guarantee the performance, and obligations of the Proposed
New Owner; and

 

(m)          you
must have properly offered us the opportunity to exercise our right of first refusal as described below, and we must have then
declined to exercise it.

 

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14.6         Right
of First Refusal.

 

If you or any of your
Principal Owners wishes to Transfer any Interest, we will have a right of first refusal to purchase that Interest as follows. The
party proposing the Transfer (the “transferor”) must obtain a bona fide, executed written offer (accompanied by
a “good faith” earnest money deposit of at least five percent (5%) of the proposed purchase price) from a responsible
and fully disclosed purchaser, and must submit an exact copy of the offer to us. You also agree to provide us with any other information
we need to evaluate the offer, if we request it within five (5) days of receipt of the offer. We have the right, exercisable by
delivering written notice to the transferor within fifteen (15) days from the date of last delivery to us of the offer and any
other documents we have requested, to purchase the Interest for the price and on the terms and conditions contained in the offer,
except that we may substitute cash for any form of payment proposed in the offer, and will not be obligated to pay any “finder’s”
or broker’s fees that are a part of the proposed Transfer. We also will not be required to pay any amount for any claimed
value of intangible benefits, for example, possible tax benefits that may result by structuring and/or closing the proposed Transfer
in a particular manner or for any consideration payable other than the bona fide purchase price for the Interest proposed to be
transferred. (In fact, we may in our sole and absolute discretion withhold consent to any proposed Transfer if the offer directly
or indirectly requires payment of any consideration other than the bona fide purchase price for the Interest proposed to be transferred.)
Our credit will be deemed equal to the credit of any other proposed purchaser, and we will have at least sixty (60) days to prepare
for closing. We will be entitled to all customary representations and warranties given purchasers in connection with such sales.
If the proposed Transfer includes assets not related to the operation of the Franchise, we may purchase only the assets related
to the operation of the Franchise or may also purchase the other assets. (An equitable purchase price will be allocated to each
asset included in the Transfer.)

 

If we do not exercise
our right of first refusal, the transferor may complete the sale to the Proposed New Owner pursuant to and on the terms of the
offer, as long as we have approved the Transfer as provided in this Section 14. You must immediately notify us of any changes
in the terms of an offer. Any material change in the terms of an offer before closing will make it a new offer, revoking any previous
approval or previously made election to purchase and giving us a new right of first refusal effective as of the day we receive
formal notice of a material change in the terms. If the sale to the Proposed New Owner is not completed within one hundred twenty
(120) days after we have approved the Transfer, our approval of the proposed Transfer will expire. Any later proposal to complete
that proposed Transfer will be deemed a new offer, giving us a new right of approval and right of first refusal effective as of
the day we receive formal notice of the new (or continuing) proposal. We will not exercise a right of first refusal with respect
to a proposed Transfer of less than a controlling interest to a member of a Principal Owner’s immediate family or to your
key employees.

 

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14.7         Death
and Disability.

 

Upon the death or permanent
disability of you or a Principal Owner, the executor, administrator, conservator or other personal representative of the deceased
or disabled person must Transfer the deceased or disabled person’s Interest within a reasonable time, not to exceed forty-five
(45) days from the date of death or permanent disability, to a person we have approved. Such Transfers, including without limitation
transfers by a will or inheritance, will be subject to all the terms and conditions for assignments and Transfers contained in
this Agreement. Failure to so dispose of an Interest within the forty-five (45) day period of time will constitute grounds for
termination of this Agreement.

 

14.8         Effect
of Consent to Transfer.

 

Our consent to a proposed
Transfer pursuant to this Section 14 will not constitute a waiver of any claims we may have against you or any Principal Owner,
nor will it be deemed a waiver of our right to demand exact compliance with any of the terms or conditions of this Agreement by
the Proposed New Owner.

 

14.9         Consent
Not Unreasonably Delayed.

 

If all the conditions
are met to transfer the FA or any interest therein, we will not unreasonably delay granting our consent to the transfer.

 

15.         TERMINATION
OF THE FRANCHISE.

 

We have the right to
terminate this Agreement effective upon delivery of notice of termination to you, if: (1) you do not develop or open the Franchise
as provided in this Agreement; (2) you abandon, surrender, transfer control of, lose the right to occupy the Premises of,
or do not actively operate, the Franchise, or your lease for or purchase of the location of the Franchise is terminated for any
reason; (3) you or your Principal Owners assign or Transfer this Agreement, any Interest, the Franchise, or assets of the
Franchise without complying with the provisions of Section 14; (4) you are adjudged a bankrupt, become insolvent or make
a general assignment for the benefit of creditors; (5) you use, sell, distribute or give away any unauthorized services or
products, and do not cease the use, sale, or distribution of unauthorized services or products within ten (10) days after written
notice is given to you; (6) you fail to maintain a valid license to practice and/or fail to maintain compliance with state
and federal regulations and do not cure the failure within twenty (20) days after written notice is given to you; (7) you
or any of your Principal Owners are convicted of or plead no contest to a felony or are convicted or plead no contest to any crime
or offense that is likely to adversely affect the reputation of the Company, the Franchise, and/or the goodwill associated with
the Marks; (8) you are involved in any action that is likely to adversely affect the reputation of the Company, the Franchise,
and/or the goodwill associated with the Marks; (9) you or any of your employees violate any health or safety law, ordinance
or regulation, or operate the Franchise in a manner that presents a health or safety hazard to your customers or the public; (10) you
do not pay when due any monies owed to us or our affiliates, and do not make such payment within ten (10) days after written notice
is given to you; (11) you fail to meet the minimum local advertising expenditures required in Section 11.2, and to provide the
required proof of your expenditures; (12) you or any of your Principal Owners fail to comply with any other provision of this
Agreement or any mandatory specification, standard, or operating procedure or you fail to make changes required to comply with
applicable state or federal laws within twenty (20) days after written notice of such failure to comply is given to you; (13) you
fail to procure or maintain any and all insurance coverage that we require, or otherwise fail to name us as an additional insured
on any such insurance policies and failure to do so within ten (10) days after written notice is given to you; or (13) you
or any of your Principal Owners fail on three (3) or more separate occasions within any twelve (12) consecutive month period to
submit when due any financial statements, reports or other data, information, or supporting records; pay when due any amounts due
under this Agreement; or otherwise fail to comply with this Agreement, whether or not such failures to comply are corrected after
notice is given to you or your Principal Owners.

 

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In addition, if, in
the opinion of our legal counsel, any provision of this Agreement is contrary to law, then you and we agree to negotiate in good
faith an amendment that would make this Agreement conform to the applicable legal requirements. If you and we are unable to reach
such an agreement, or if fundamental changes to this Agreement are required to make it conform to the legal requirements, then
we reserve the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set
forth in Section 16 shall apply.

 

In the event that we
terminate this Agreement under this Section or other applicable provisions of this Agreement, we shall be entitled, in those states
in which such termination fees are enforceable, to receive from you a termination fee in the amount equal to one-half (1/2) of
our then-current initial franchise fee for new The Joint Corp. Location franchises (the “Termination Fee”).
The Termination Fee shall be payable by you in addition to any damages payable to us, including loss of future revenues, resulting
from your improper or wrongful breach or other termination of this Agreement. We shall be entitled to recover all costs, including
attorneys’ fees, incurred in connection with the termination and collection of the Termination Fee.

 

If you continue to
operate the Franchise after termination of this Agreement, in addition to any other right or remedy we may have (including the
Termination Fee), you agree to pay to us the amount of One Thousand and No/100 Dollars ($1,000.00) per day that you operate the
Franchise in violation of this Agreement, plus all costs and attorneys’ fees incurred as a result of the violation. This
amount is set at $1,000 per day because it is a reasonable estimation of the damages that would occur from such a breach, and it
will almost certainly be impossible to calculate precisely the actual damages from such a breach.

 

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16.         RIGHTS
AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.

 

16.1         Payment
of Amounts Owed to Company.

 

You agree to pay us
within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts
due to us are determined, all amounts owed to us or our affiliates which are then unpaid.

 

16.2         Marks.

 

You agree that after
the termination or expiration of the Franchise you will:

 

(a)          not
directly or indirectly at any time identify any business with which you are associated as a current or former The Joint Corp. franchise
or franchisee;

 

(b)          not
use any Mark or any colorable imitation of any Mark in any manner or for any purpose, or use for any purpose any trademark or other
commercial symbol that suggests or indicates an association with us;

 

(c)          return
to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or otherwise relating to a
The Joint Corp. franchise;

 

(d)          remove
all Marks affixed to uniforms or, at our direction, cease to use those uniforms; and

 

(e)          take
any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any
Mark.

 

16.3         De-Identification.

 

If you retain possession
of the Premises, you agree to completely remove or modify, at your sole expense, any part of the interior and exterior decor that
we deem necessary to disassociate the Premises with the image of a The Joint Corp. franchise, including any signage bearing the
Marks. If you do not take the actions we request within thirty (30) days after notice from us, we have the right to enter the Premises
and make the required changes at your expense, and you agree to reimburse us for those expenses on demand.

 

16.4         Confidential
Information.

 

You agree that on termination
or expiration of the Franchise you will immediately cease to use any of the Confidential Information, and agree not to use it in
any business or for any other purpose. You further agree to immediately return to us all copies of the Operations Manual and any
written Confidential Information or other confidential materials that we have loaned or provided to you. Upon

 

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16.5         Joint
Software.

 

You agree that on termination
or expiration of the Franchise, you will immediately cease to use the Joint Software and will uninstall it from all computer systems
owned by the Franchise.

 

16.6         Company’s
Option to Purchase the Franchise.

 

Upon the termination
or expiration of the Franchise, we will have the option, but not the obligation, exercisable for thirty (30) days upon written
notice to you, to purchase at fair market value all of the assets of the Franchise, including all approved equipment, fixtures,
furniture and signs and all supplies, materials, and other items imprinted with any Mark, and to take an assignment of the lease
for the Premises and any other lease or concession agreement necessary for the operation of the Franchise. If you and we cannot
agree on the fair market value of the assets of the Franchise within a reasonable time, such value shall be determined by an average
of the appraisals of two (2) independent appraisers, one of whom will be selected by you and one of whom will be selected by us.
If the appraisals differ by more than ten percent (10%), then you and we will mutually agree on a value, or if you and we cannot
agree, our appraisers will select a third appraiser whose determination of market value will be final. We shall not assume any
liabilities, debts or obligations of the Franchise in connection with any such transfer, and you will indemnify us from any and
all claims made against us arising out of any such transfer of the assets of the Franchise. All parties will comply with all applicable
laws in connection with any such transfer, and you agree to cooperate with us in complying with all such requirements.

 

The closing shall occur
within thirty (30) days after we exercise our option to purchase the assets or such later date as may be necessary to comply with
applicable bulk sales or similar laws. At the closing, you and we both agree to execute and deliver all documents necessary to
vest title in the purchased assets and/or real property in us free and clear of all liens and encumbrances, except those assumed
by us and/or to effectuate the lease of the Franchise Premises. You also agree to provide us with all information necessary to
close the transaction. We reserve the right to assign our option to purchase the Franchise or designate a substitute purchaser
for the Franchise. By signing this Agreement, you irrevocably appoint us as your lawful attorney-in-fact with respect to the matters
contemplated by this Paragraph 16.6, with full power and authority to execute and deliver in your name all documents required to
be provided by you under this Paragraph in the event you do not provide them in a timely and proper manner. You also agree to ratify
and confirm all of our acts as your lawful attorney-in-fact, and indemnify and hold us harmless from all claims, liabilities, losses
or damages suffered by us in so doing.

 

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Once we give notice
that we will purchase the Franchise assets, we will have the right to immediately take over the operations of the Franchise. From
the date we take over the Franchise to the date of closing of the purchase of the Franchise assets, we will be entitled to use
any gross revenues of the Franchise to operate the Franchise, and to retain as a management fee up to ten percent (10%) of the
balance of such gross revenues after operating expenses are paid, plus any additional costs and expenses we may incur.

 

16.7         Continuing
Obligations.

 

All obligations of
this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement
will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full
or by their nature expire.

 

16.8         Management
of the Franchise.

 

In the event that we
are entitled to terminate this Agreement in accordance with Section 15 above or any other provision of this Agreement, and
in addition to any other rights or and remedies available to us in the event of such termination, we may, but need not, assume
the Franchise’s management. All gross revenues from the Franchise’s operation while we assume its management will be
kept in a separate account, and all of the Franchise’s expenses will be charged to this account. We may charge you (in addition
to the Royalty Fee and Advertising Fee contributions due under this Agreement) a reasonable management fee in an amount that we
may specify, equal to up to ten percent (10%) of the Franchise’s gross revenues, plus our direct out-of-pocket costs and
expenses, if we assume management of the Franchise under this Paragraph. We have a duty to utilize only our reasonable efforts
in managing the Franchise, and will not be liable to you for any debts, losses, or obligations the Franchise incurs, or to any
of your creditors for any products or services the Franchise purchases, while we manage it pursuant to this Paragraph.

 

17.         ENFORCEMENT.

 

17.1         Invalid
Provisions; Substitution of Valid Provisions.

 

To the extent that
the non-competition provisions of Sections 9.3 and 14.5 are deemed unenforceable because of their scope in terms of area,
business activity prohibited, or length of time, you agree that the invalid provisions will be deemed modified or limited to the
extent or manner necessary to make that particular provisions valid and enforceable to the greatest extent possible in light of
the intent of the parties expressed in that such provisions under the laws applied in the forum in that we are seeking to enforce
such provisions.

 

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If any lawful requirement
or court order of any jurisdiction (1) requires a greater advance notice of the termination or non-renewal of this Agreement
than is required under this Agreement, or the taking of some other action which is not required by this Agreement, or (2) makes
any provision of this Agreement or any specification, standard, or operating procedure we prescribed invalid or unenforceable,
then the advance notice and/or other action required or revision of the specification, standard, or operating procedure will be
substituted for the comparable provisions of this Agreement in order to make the modified provisions enforceable to the greatest
extent possible. You agree to be bound by the modification to the greatest extent lawfully permitted.

 

17.2         Unilateral
Waiver of Obligations.

 

Either you or we may,
by written notice, unilaterally waive or reduce any obligation or restriction of the other under this Agreement. The waiver or
reduction may be revoked at any time for any reason on ten (10) days’ written notice.

 

17.3         Written
Consents from Company.

 

Whenever this Agreement
requires our advance approval or consent, you agree to make a timely written request for it. Our approval or consent will not be
valid unless it is in writing.

 

17.4         Lien.

 

To secure your performance
under this Agreement and indebtedness for all sums due us or our affiliates, we shall have a lien upon, and you hereby grant us
a security interest in, the following collateral and any and all additions, accessions, and substitutions to or for it and the
proceeds from all of the same: (a) all inventory now owned or after-acquired by you and the Franchise, including but not limited
to all inventory and supplies transferred to or acquired by you in connection with this Agreement; (b) all accounts of you and/or
the Franchise now existing or subsequently arising, together with all interest in you and/or the Franchise, now existing or subsequently
arising, together with all chattel paper, documents, and instruments relating to such accounts; (c) all contract rights of you
and/or the Franchise, now existing or subsequently arising; and (d) all general intangibles of you and/or the Franchise, now owned
or existing, or after-acquired or subsequently arising. You agree to execute such financing statements, instruments, and other
documents, in a form satisfactory to us, that we deem necessary so that we may establish and maintain a valid security interest
in and to these assets.

 

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17.5         No
Guarantees.

 

If in connection with
this Agreement we provide to you any waiver, approval, consent, or suggestion, or if we neglect or delay our response or deny any
request for any of those, then we will not be deemed to have made any warranties or guarantees upon which you may rely, and will
not assume any liability or obligation to you.

 

17.6         No
Waiver.

 

If at any time we do
not exercise a right or power available to us under this Agreement or do not insist on your strict compliance with the terms of
the Agreement, or if there develops a custom or practice that is at variance with the terms of this Agreement, then we will not
be deemed to have waived our right to demand exact compliance with any of the terms of this Agreement at a later time. Similarly,
our waiver of any particular breach or series of breaches under this Agreement, or of any similar term in any other agreement between
us and any other The Joint Corp. franchisee will not affect our rights with respect to any later breach. It will also not be deemed
to be a waiver of any breach of this Agreement for us to accept payments that are due to us under this Agreement.

 

17.7         Cumulative
Remedies.

 

The rights and remedies
specifically granted to either you or us by this Agreement will not be deemed to prohibit either you or us from exercising any
other right or remedy provided under this Agreement, or permitted by law or equity.

 

17.8         Specific
Performance; Injunctive Relief.

 

Provided we give you
the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions
and orders of specific performance to (1)  enforce the provisions of this Agreement relating to your use of the Marks and
non-disclosure and non-competition obligations under this Agreement; (2)  prohibit any act or omission by you or your employees
that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair
the goodwill associated with the Marks or The Joint Corp. franchises; or (3)  prevent any other irreparable harm to our interests.
If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of
obtaining it, including without limitation reasonable attorneys’ and expert witness fees, costs of investigation and proof
of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach
of any such provision. You further agree to waive any claims for damage in the event there is a later determination that an injunction
or specific performance order was issued improperly.

 

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17.9         Arbitration.

 

Except insofar as we
elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided above, all controversies, disputes
or claims arising between us, our affiliates, and our and their respective owners, officers, directors, agents, and employees (in
their representative capacity) and you (and your Principal Owners and guarantors) arising out of or related to: (1) this Agreement,
any provision thereof, or any related agreement (except for any lease or sublease with us or any of our affiliates); (2) the
relationship of the parties hereto; (3) the validity of this Agreement or any related agreement, or any provision thereof;
or (4) any specification, standard or operating procedure relating to the establishment or operation of the Franchise, shall
be submitted for arbitration to be administered by the office of the American Arbitration Association. Such arbitration proceedings
shall be conducted in Maricopa County, Arizona, and, except as otherwise provided in this Agreement, shall be conducted in accordance
with then current commercial arbitration rules of the American Arbitration Association. The arbitrator shall have the right to
award or include in his award any relief that he or she deems proper in the circumstances, including without limitation, money
damages (with interest on unpaid amounts from date due), specific performance, injunctive relief, attorneys’ fees, and costs.
The award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement, and judgment on the
award may be entered in any court of competent jurisdiction, and each such party waives any right to contest the validity or enforceability
of such award. The provisions of this Paragraph are intended to benefit and limit third-party non-signatories, and will continue
in full force and effect subsequent to, and notwithstanding expiration or termination of, this Agreement. You and we agree that
any such arbitration shall be conducted on an individual, not a class-wide basis, and shall not be consolidated with any other
arbitration proceeding.

 

17.10         Waiver
of Punitive Damages and Jury Trial; Limitations of Actions.

 

Except with respect
to your obligations to indemnify us and claims that we may bring under Sections 7, 9, 15, or 16 of this Agreement, and except for
claims arising from your non-payment or underpayment of any amounts owed to us or our affiliates, (1) any and all claims arising
out of or related to this Agreement or the relationship between you and us shall be barred, by express agreement of the parties,
unless an action or proceeding is commenced within two (2) years from the date the cause of action accrues; and (2) you and we
hereby waive to the fullest extent permitted by law, any right to or claim for any punitive or exemplary damages against the other,
and agree that, except to the extent provided to the contrary in this Agreement, in the event of a dispute between you and us,
each party will be limited to the recovery of any actual damages sustained by it. You and we irrevocably waive trial by jury in
any action, proceeding or counterclaim, whether at law or in equity, brought by either you or us.

 

The Joint...The
Chiropractic PlaceTM

Franchise Agreement

    	46

    	 

    

 

17.11         Governing
Law/Consent To Jurisdiction.

 

Except to the extent
governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. §§ 1051 et seq.) and except
that all issues relating to arbitrability or the enforcement or interpretation of the agreement to arbitrate set forth in Section 17.9
which will be governed by the United States Arbitration Act (9 U.S.C. § 1 et seq.) and the federal common
law relating to arbitration, this Agreement and the Franchise will be governed by the internal laws of the State of Arizona (without
reference to its choice of law and conflict of law rules), except that the provisions of any Arizona law relating to the offer
and sale of business opportunities or franchises or governing the relationship of a franchisor and its franchisees will not apply
unless their jurisdictional requirements are met independently without reference to this Paragraph. You agree that we may institute
any action against you arising out of or relating to this Agreement (which is not required to be arbitrated hereunder or as to
which arbitration is waived) in any state or federal court of general jurisdiction in Maricopa County, Arizona, and you irrevocably
submit to the jurisdiction of such courts and waive any objection you may have to either the jurisdiction or venue of such court.

 

17.12         Binding
Effect.

 

This Agreement is binding
on and will inure to the benefit of our successors and assigns and, subject to the Transfers provisions contained in this Agreement,
will be binding on and inure to the benefit of your successors and assigns, and if you are an individual, on and to your heirs,
executors, and administrators.

 

17.13         No
Liability to Others; No Other Beneficiaries.

 

We will not, because
of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity that
is not a party to this Agreement, and no other party shall have any rights because of this Agreement.

 

17.14         Construction.

 

All headings of the
various Sections and Paragraphs of this Agreement are for convenience only, and do not affect the meaning or construction of any
provision. All references in this Agreement to masculine, neuter or singular usage will be construed to include the masculine,
feminine, neuter or plural, wherever applicable. Except where this Agreement expressly obligates us to reasonably approve or not
unreasonably withhold our approval of any of your actions or requests, we have the absolute right to refuse any request by you
or to withhold our approval of any action or omission by you. The term “affiliate” as used in this Agreement is applicable
to any company directly or indirectly owned or controlled by you or your Principal Owners, or any company directly or indirectly
owned or controlled by us that sells products or otherwise transacts business with you.

 

	The Joint...The Chiropractic PlaceTM	
	Franchise Agreement	 

    	47

    	 

    

 

17.15         Joint
and Several Liability.

 

If two (2) or more
persons are the Franchise Owner under this Agreement, their obligation and liability to us shall be joint and several.

 

17.16         Multiple
Originals.

 

This Agreement may
be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other parties hereto.  This Agreement, once executed
by a party, may be delivered to the other parties hereto by facsimile transmission or other electronic means of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

 

17.17         Timing
Is Important.

 

Time is of the essence
of this Agreement. “Time is of the essence” is a legal term that emphasizes the strictness of time limits. In this
case, it means it will be a material breach of this Agreement to fail to perform any obligation within the time required or permitted
by this Agreement.

 

17.18         Independent
Provisions.

 

The provisions of this
Agreement are deemed to be severable. In other words, the parties agree that each provision of this Agreement will be construed
as independent of any other provision of this Agreement.

 

18.         NOTICES
AND PAYMENTS.

 

All written notices,
reports and payments permitted or required under this Agreement or by the Operations Manual will be deemed delivered: (a) at
the time delivered by hand; (b) one (1) business day after transmission by telecopy, facsimile or other electronic system;
(c) one (1) business day after being placed in the hands of a reputable commercial courier service for next business day delivery;
or (d) three (3) business days after placed in the U.S. mail by Registered or Certified Mail, Return Receipt Requested, postage
prepaid; and addressed to the party to be notified or paid at its most current principal business address of which the notifying
party has been advised, or to any other place designated by either party. Any required notice, payment or report which we do not
actually receive during regular business hours on the date due (or postmarked by postal authorities at least two (2) days
before it is due) will be deemed delinquent.

 

	The Joint...The Chiropractic PlaceTM	
	Franchise Agreement	 

    	48

    	 

    

 

19.         INDEPENDENT
PROFESSIONAL JUDGMENT OF YOU AND YOUR GENERAL MANAGER.

 

You and we acknowledge
and agree that the specifications, standards and operating procedures related to the services offered by the Franchise are not
intended to limit or replace your or your General Manager’s (if any) professional judgment in supervising and performing
the services offered by your Franchise. The specifications, standards, and operating procedures represent only the minimum standards,
and you and your General Manager (if any) are solely responsible for ensuring that the Franchise performs services in accordance
with all applicable requirements and standards of care. Nothing in this Agreement shall obligate you or your General Manager (if
any) to perform any act that is contrary to your or your General Manager’s (if any) professional judgment; provided, however,
that you must notify us immediately upon your determination that any specification, standard or operating procedure is contrary
to your or your General Manager’s (if any) professional judgment.

 

20.         ENTIRE
AGREEMENT.

 

This Agreement, together
with the introduction and exhibits to it, constitutes the entire agreement between us, and there are no other oral or written understandings
or agreements between us concerning the subject matter of this Agreement. This Agreement may be modified only by written agreement
signed by both you and us, except that we may modify the Operations Manual at any time as provided herein. However, nothing in
this Agreement or any addendum shall have the effect of disclaiming any of the representations made in the Franchise Disclosure
Document or any of its exhibits.

 

IN WITNESS WHEREOF, the parties have duly
executed this Agreement as of the Agreement Date.

 

	
        “Company”

        The Joint Corp., 

        a Delaware corporation
	
        “Franchise Owner”

        ___________________,

        a_________________

 

	By:	 	 	By:	 
	Name:	Chad Everts	 	Name:	 
	Title:	V.P. Franchise Development 	 	Title:	 

 

	The Joint...The Chiropractic PlaceTM	
	Franchise Agreement	 

    	49

    	 

    

 

EXHIBIT 1

 

TO THE JOINT
CORP. FRANCHISE AGREEMENT

FRANCHISE AGREEMENT EXPIRATION DATE

 

PROJECTED
FRANCHISING OPENING SCHEDULE

 

1-1        Expiration
Date. Unless sooner terminated in accordance with the provisions of this Agreement, this Agreement will expire on _______________________________________.

 

1-2        Franchising
Opening Schedule. In signing the foregoing Agreement to which this Exhibit 1 is attached, you acknowledge
that:

 

You have
purchased the Franchise to which the Agreement corresponds as a The Joint Corp. Location Franchise. You will establish this Franchise
as a Start-up Location.

 

2.          You
must open the Franchise mentioned above within a certain time period specified by us, the length of which depends upon the number
of Franchises you have purchased and the number of these Franchises that you have developed and opened for business before developing
and opening the Franchise to which the Agreement corresponds.

 

3.          You
must open the Franchise to which this Agreement corresponds within the following time period (the “Opening Deadline”),
subject to the requirements of Paragraphs 3.3 and 3.6, and any other applicable provision of the Agreement:

	 	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

  

	The Joint...The Chiropractic PlaceTM	Exhibit 1 – Expiration Date and Opening Schedule
	Franchise Agreement	 

    	1

    	 

    

 

EXHIBIT 2

 

TO THE JOINT
CORP. FRANCHISE AGREEMENT

 

OWNER’S
GUARANTY AND ASSUMPTION OF OBLIGATIONS

 

In consideration of,
and as an inducement to, the execution of the Franchise Agreement, dated as of this _____ day of ____________________, 20__ (the
“Agreement”), by and between The Joint Corp. (“us”) and                                      
 (the “Franchise Owner”), each of the undersigned owners of the Franchise Owner and their respective spouses (“you,”
for purposes of this Guaranty only), hereby personally and unconditionally agree to perform and keep during the terms of the Agreement,
each and every covenant, obligation, payment, agreement, and undertaking on the part of Franchise Owner contained and set forth
in the Agreement. Each of you agree that all provisions of the Agreement relating to the obligations of Franchise Owners, including,
without limitation, the covenants of confidentiality and non-competition and other covenants set forth in the Agreement, shall
be binding on you.

 

Each of you waives
(1) protest and notice of default, demand for payment or nonperformance of any obligations guaranteed by this Guaranty; (2) any
right you may have to require that an action be brought against Franchise Owner or any other person as a condition of your liability;
(3) all right to payment or reimbursement from, or subrogation against, the Franchise Owner which you may have arising out of your
guaranty of the Franchise Owner’s obligations; and (4) any and all other notices and legal or equitable defenses to which
you may be entitled in your capacity as guarantor.

 

Each of you consents
and agrees that (1) your direct and immediate liability under this Guaranty shall be joint and several; (2) you will make any payment
or render any performance required under the Agreement on demand if Franchise Owner fails or refuses to do so when required; (3)
your liability will not be contingent or conditioned on our pursuit of any remedies against Franchise Owner or any other person;
(4) your liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence
which we may from time to time grant to Franchise Owner or to any other person, including without limitation, the acceptance of
any partial payment or performance, or the compromise or release of any claims; and (5) this Guaranty will continue and be irrevocable
during the term of the Agreement and afterward for so long as the Franchise Owner has any obligations under the Agreement.

 

If we are required
to enforce this Guaranty in a judicial or arbitration proceeding, and prevail in such proceeding, we will be entitled to reimbursement
of our costs and expenses, including, but not limited to, reasonable accountants’, attorneys’, attorneys’ assistants’,
arbitrators’ and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and
travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding.
If we are required to engage legal counsel in connection with any failure by you to comply with this Guaranty, you agree to reimburse
us for any of the above-listed costs and expenses incurred by us.

 

[Remainder of Page
Left Intentionally Blank – Signature Page Follows]

 

	The Joint...The Chiropractic PlaceTM	Exhibit 2 – Owner’s Guaranty and Assumption of Obligations

	Franchise Agreement	 

    	1

    	 

    

 

This Guaranty is now
executed as of the Agreement Date.

 

	OWNER:	 	OWNER’S SPOUSE:
	 	 	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 
	OWNER:	 	OWNER’S SPOUSE:
	 	 	 
	 	 	 	 	 
	Name:	 	 	Name: 	 
	 	 	 
	OWNER:	 	OWNER’S SPOUSE:
	 	 	 
	 	 	 	 	 
	Name:	 	 	Name:	 

 

	The Joint...The Chiropractic PlaceTM	Exhibit 2 – Owner’s Guaranty and Assumption of Obligations

	Franchise Agreement	 

    	2

    	 

    

 

EXHIBIT 3

 

TO THE JOINT
CORP. FRANCHISE AGREEMENT

ADDENDUM TO LEASE AGREEMENT

 

This Addendum to Lease
Agreement (this “Addendum”), is entered into effective on this ______ day of _______________, 20___, (the “Effective
Date”) by and between __________________, a ________________________ (the “Lessor”), and __________________,
a ________________________ (the “Lessee”) (each a “Party” and collectively, the “Parties”).

RECITALS

 

WHEREAS, the Parties
hereto have entered into a certain Lease Agreement, dated on the ______ day of _______________, 20___ (the “Agreement”),
and pertaining to the premises located at _____________________________ (the “Premises”);

 

WHEREAS, Lessor acknowledges
that Lessee intends to operate The Joint franchise from the Premises pursuant to a Franchise Agreement (the “Franchise Agreement”)
with The Joint Corp. (“Franchisor”) under the name The Joint or other name designated by Franchisor (“Franchised
Business”); and

 

WHEREAS, the Parties
now desire to amend the Lease Agreement in accordance with the terms and conditions contained herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein set forth and each act done and to be done pursuant hereto, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to
be legally bound, do hereby represent, warrant, covenant and agree as follows:

 

1.          Remodeling
and Decor. The above recitals are hereby incorporated by reference. Lessor agrees that Lessee shall have the right to remodel,
equip, paint and decorate the interior of the Premises and to display the proprietary marks and signs on the interior and exterior
of the Premises as Lessee is reasonably required to do pursuant to the Franchise Agreement and any successor Franchise Agreement
under which Lessee may operate a Franchised Business on the Premises.

 

2.          Assignment.
Lessee shall have the right to assign all of its right, title and interest in and to the Lease Agreement to Franchisor or its parent,
subsidiary, or affiliate, (including another franchisee) at any time during the term of the Lease, including any extensions
or renewals thereof, without first obtaining Lessor’s consent, pursuant to the terms of the Collateral Assignment of Lease
attached hereto as Exhibit A. However, no assignment shall be effective until such time as Franchisor or its designated
affiliate gives Lessor written notice of its acceptance of the assignment, and nothing contained herein or in any other document
shall constitute Franchisor or its designated subsidiary or affiliate a party to the Lease Agreement, or guarantor thereof, and
shall not create any liability or obligation of Franchisor or its parent unless and until the Lease Agreement is assigned to, and
accepted in writing by, Franchisor or its parent, subsidiary or affiliate. In the event of any assignment, Lessee shall remain
liable under the terms of the Lease. Franchisor shall have the right to reassign the Lease to another franchisee without the Landlord’s
consent in accordance with Section 4(a).

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement

	Franchise Agreement	 

    	1

    	 

    

 

3.          Default
and Notice.

 

(a)          In
the event there is a default or violation by Lessee under the terms of the Lease Agreement, Lessor shall give Lessee and Franchisor
written notice of the default or violation within ten (10) days after Lessor receives knowledge of its occurrence. If Lessor gives
Lessee a default notice, Lessor shall contemporaneously give Franchisor a copy of the notice. Franchisor shall have the right,
but not the obligation, to cure the default. Franchisor will notify Lessor whether it intends to cure the default and take an automatic
assignment of Lessee’s interest as provided in Paragraph 4(a). Franchisor will have an additional fifteen (15) days from
the expiration of Lessee’s cure period in which it may exercise the option to cure, but is not obligated to cure the default
or violation.

 

(b)          All
notices to Franchisor shall be sent by registered or certified mail, postage prepaid, to the following address:

 

The Joint Corp.

16767 N. Perimeter Dr., Suite 240

Scottsdale, AZ 85260

Attention: Chad Everts

E-mail: ceverts@thejoint.com

 

Franchisor may change its address
for receiving notices by giving Lessor written notice of the new address. Lessor agrees that it will notify both Lessee and Franchisor
of any change in Lessor’s mailing address to which notices should be sent.

 

(c)          Following
Franchisor’s approval of the Lease Agreement, Lessee agrees not to terminate, or in any way alter or amend the same during
the Initial Term of the Franchise Agreement or any Interim Period thereof without Franchisor’s prior written consent, and
any attempted termination, alteration or amendment shall be null and void and have no effect as to Franchisor’s interests
thereunder; and a clause to the effect shall be included in the Lease.

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

 

    	2

    	 

    

  

4.          Termination
or Expiration.

 

(a)          Upon
Lessee’s default and failure to cure the default within the applicable cure period, if any, under either the Lease Agreement
or the Franchise Agreement, Franchisor will, at its option, have the right, but not the obligation, to take an automatic assignment
of Lessee’s interest in the Lease Agreement and at any time thereafter to re-assign the Lease Agreement to a new franchisee
without Lessor’s consent and to be fully released from any and all liability to Lessor upon the reassignment, provided the
franchisee agrees to assume Lessee’s obligations and the Lease Agreement. Upon notice from Franchisor to Lessor requesting
an automatic assignment, Lessor will, at the cost of Franchisor, take appropriate actions to secure the leased premises including
but not limited changing the locks and granting Franchisor sole rights to the Premises.

 

(b)          Upon
the expiration or termination of either the Lease Agreement or the Franchise Agreement (attached), Lessor will cooperate with and
assist Franchisor in securing possession of the Premises and if Franchisor does not elect to take an assignment of the Lessee’s
interest, Lessor will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability
to Lessor, to remove all signs, awnings, and all other items identifying the Premises as a Franchised Business and to make other
modifications (such as repainting) as are reasonably necessary to protect The Joint marks and system, and to distinguish the Premises
from a Franchised Business. In the event Franchisor exercises its option to purchase assets of Lessee or has rights to those through
the terms and conditions any agreement between Lessee and Franchisor, Lessor shall permit Franchisor to remove all the assets being
purchased by Franchisor.

 

5.          Consideration;
No Liability.

 

(a)          Lessor
hereby acknowledges that the provisions of this Addendum are required pursuant to the Franchise Agreement under which Lessee plans
to operate its business and Lessee would not lease the Premises without this Addendum. Lessor also hereby consents to the Collateral
Assignment of Lease from Lessee to Franchisor as evidenced by Exhibit A.

 

(b)          Lessor
further acknowledges that Lessee is not an agent or employee of Franchisor and Lessee has no authority or power to act for, or
to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Lessor has entered
into this Addendum with full understanding that it creates no duties, obligations or liabilities of or against Franchisor or any
affiliate of Franchisor.

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

 

    	3

    	 

    

  

6.          Sales
Reports. If requested by Franchisor, Lessor will provide Franchisor with whatever information Lessor has regarding Lessee’s
sales from its Franchised Business.

 

7.          Amendments.
No amendment or variation of the terms of the Lease or this Addendum shall be valid unless made in writing and signed by the Parties
hereto.

 

8.          Reaffirmation
of Lease. Except as amended or modified herein, all of the terms, conditions and covenants of the Lease Agreement shall remain
in full force and effect and are incorporated herein by reference and made a part of this Addendum as though copied herein in full.

 

9.          Beneficiary.
Lessor and Lessee expressly agree that Franchisor is a third party beneficiary of this Addendum.

 

[Remainder of Page Left Intentionally
Blank – Signature Page Follows]

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

 

    	4

    	 

    

 

IN WITNESS WHEREOF,
the Parties have duly executed this Addendum as of the Effective Date.

 

	LESSOR:	 	LESSEE:
	 	 	 
	_____________________________,	 	_____________________________,
	a _____________________________	 	a _____________________________

 

	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Its:	 	 	Its:	 

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

    	5

    	 

    

 

EXHIBIT A

 

COLLATERAL ASSIGNMENT OF LEASE

 

This COLLATERAL ASSIGNMENT
OF LEASE (this “Assignment”) is entered into effective as of the ___ day of _____, 20___ (the “Effective Date”),
the undersigned, __________________________________, (“Assignor”) hereby assigns, transfers and sets over unto The
Joint Corp., a Delaware Corporation (“Assignee”) all of Assignor’s right, title and interest as tenant, in, to
and under that certain lease, a copy of which is attached hereto as Exhibit 1 (the “Lease Agreement”)
with respect to the premises located at _______________________________________________________________ (the “Premises”).
This Assignment is for collateral purposes only and except as specified herein, Assignee shall have no liability or obligation
of any kind whatsoever arising from or in connection with this Assignment unless Assignee shall take possession of the Premises
demised by the Lease Agreement pursuant to the terms hereof and shall assume the obligations of Assignor thereunder.

 

Assignor represents
and warrants to Assignee that it has full power and authority to so assign the Lease Agreement and its interest therein and that
Assignor has not previously, and is not obligated to, assign or transfer any of its interest in the Lease Agreement nor the Premises
demised thereby.

 

Upon a default by
Assignor under the Lease Agreement or under that certain franchise agreement for The Joint between Assignee and Assignor (“Franchise Agreement”),
or in the event of a default by Assignor under any document or instrument securing the Franchise Agreement, Assignee shall have
the right and is hereby empowered to take possession of the Premises, expel Assignor therefrom, and, in the event, Assignor shall
have no further right, title or interest in the Lease Agreement.

 

Assignor agrees it
will not suffer or permit any surrender, termination, amendment or modification of the Lease Agreement without the prior written
consent of Assignee. Through the Initial Term of the Franchise Agreement and any Renewal Period thereof (as defined in the Franchise
Agreement), Assignor agrees that it shall elect and exercise all options to extend the term of or renew the Lease Agreement not
less than thirty (30) days before the last day that said option must be exercised, unless Assignee otherwise agrees in writing.
Upon failure of Assignee to otherwise agree in writing, and upon failure of Assignor to so elect to extend or renew the Lease Agreement
as stated herein, Assignor hereby irrevocably appoints Assignee as its true and lawful attorney-in-fact, which appointment is coupled
with an interest, to exercise the extension or renewal options in the name, place and stead of Assignor for the sole purpose of
effecting the extension or renewal.

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

    	6

    	 

    

 

IN WITNESS WHEREOF,
Assignor and Assignee have duly executed this Collateral Assignment of Lease as of the Effective Date.

  

	ASSIGNOR:	 	ASSIGNEE:
	 	 	 
	 	,	THE JOINT CORP.,
	a__________________________	 	
        a Delaware corporation

         

 

	By:	 	 	By:	 
	Name:	 	 	Name:	Chad Everts
	Its:	 	 	Its:	VP Franchise Development

 

	The Joint...The Chiropractic PlaceTM	Exhibit 3 – Addendum to Lease Agreement
	Franchise Agreement	 

    	7

    	 

    

  

EXHIBIT 4

 

TO THE JOINT
CORP. FRANCHISE AGREEMENT

 

OWNERSHIP
INTERESTS IN FRANCHISE OWNER

 

4-1.          Full
name and address of the owners of, and a description of the type of, all currently held Interests in Franchise Owner:

	 	 
	 
	 
	 
	 
	 
	 
	 
	 

 

4-2.Minimum
individual and aggregate Principal Owner ownership percentage required at all times during the term of this Agreement:

 

4-2.1           During
the term of this Agreement, the Principal Owners together must have a “controlling interest” of no less than seventy-five
percent (75%) of the equity, voting control and profits in the Franchise Owner. 

 

4-2.2           Unless
otherwise permitted, the required minimum “ownership interest” of each Principal Owner during the term of this Agreement
is:

 

	Name	 	
        Ownership

        Percentage

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	The Joint...The Chiropractic PlaceTM	Exhibit 4 – Ownership Interests in Franchise Owner
	Franchise Agreement	 

    	1

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