To whom does the Healthsource Chiropractic agreement apply and benefit?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
agreement on an alternative fee arrangement, then HealthSource Chiropractic 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.
7. MARKS; COPYRIGHTED WORKS.
7.1 Ownership and Goodwill of Marks
- a. 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 this Agreement, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, and all other sums due to us.
- b.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the franchise agreement primarily applies to and benefits both Healthsource Chiropractic and the franchisee. The franchisee's right to use Healthsource Chiropractic's marks is derived solely from the agreement, contingent upon operating the franchise in compliance with the agreement's standards and procedures, including timely payments of fees. Healthsource Chiropractic retains the right to regulate the use of its marks, especially in electronic media. Unauthorized use of the marks by the franchisee constitutes a breach of the agreement and infringement of Healthsource Chiropractic's rights.
Healthsource Chiropractic also enters into agreements with third-party service providers to offer software and support services to franchisees. These agreements outline the products and services provided, licensing restrictions, and pricing. Franchisees may be required to sign a service agreement with Healthsource Chiropractic or a third-party provider, incorporating additional terms and conditions into the franchise agreement. All usage of Healthsource Chiropractic's marks by the franchisee, including any goodwill established, inures exclusively to the benefit of Healthsource Chiropractic and its affiliates, with the franchisee only having the right to operate the franchise in compliance with the agreement.
Healthsource Chiropractic reserves the right to modify its marks and specifications, and franchisees must conform to these changes at their own expense. The agreement emphasizes that Healthsource Chiropractic will perform its obligations only if the franchisee is in full compliance with all duties and obligations. Non-compliance allows Healthsource Chiropractic to withhold certain performance aspects, such as access to websites or participation in discount programs. Time is deemed of the essence in the agreement, meaning that failure to meet deadlines constitutes a material breach. Upon termination of the agreement, franchisees must take steps to remove their affiliation with Healthsource Chiropractic, and all obligations that survive termination remain in effect until fully satisfied.