Can Healthsource Chiropractic change the Marks that the Licensed Provider is sub-licensed to use?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
4.2 With the prior consent of HealthSource, Management Company hereby grants Licensed Provider a revocable, non-assignable and non-exclusive sub-license to use certain identifying trade and service marks, names, service marks and other commercial symbols, including the marks "HS" and "HealthSource Chiropractic" and certain associated designs, artwork, and logos (as may be changed by HealthSource from time to time, the "Marks"), as well as certain System materials, forms, intellectual property and décor items, during the Agreement Term. Licensed Provider hereby agrees to use the Marks in accordance with all applicable laws, rules and regulations, in accordance with the rules and requirements of HealthSource, and under
HealthSource Chiropractic therefore reserves the right to change its Marks and the specifications for each when we believe that such changes will benefit the System.
You will promptly conform at your own expense, to any such changes.
HealthSource Chiropractic need not reimburse you for any loss of revenue due to any modified or discontinued Mark or for your expenses in changing to, or promoting, a modified or substitute trademark or service mark.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic has the right to change the Marks that the Licensed Provider is sub-licensed to use. Specifically, the agreement grants the Licensed Provider a sublicense to use identifying marks like "HS" and "HealthSource Chiropractic," which Healthsource Chiropractic can change from time to time.
Healthsource Chiropractic reserves the right to change its Marks and specifications when it believes such changes will benefit the System. The reasons for these changes could include shifts in the cultural and economic environment, modifications in marketing strategies, or third-party challenges to Healthsource Chiropractic's rights in the Marks.
The franchisee is responsible for promptly conforming to any such changes at their own expense. Healthsource Chiropractic is not obligated to reimburse the franchisee for any loss of revenue or expenses incurred while changing to a modified or substitute trademark or service mark. This means a Healthsource Chiropractic franchisee must be prepared to update signage, marketing materials, and other branded items at their own cost if Healthsource Chiropractic decides to change its Marks.
This clause highlights the importance of adaptability for a Healthsource Chiropractic franchisee. While changes to branding can potentially benefit the overall system, the financial burden of implementing these changes falls on the franchisee. A prospective franchisee should consider the potential costs associated with rebranding when evaluating the Healthsource Chiropractic franchise opportunity.