What condition is placed on the Licensed Provider's use of Healthsource Chiropractic's Confidential Information?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Licensed Provider acknowledges and agrees that the Confidential Information belongs to HealthSource, may contain trade secrets belonging to HealthSource, and is disclosed to Licensed Provider or authorized for his/her/its use solely on the condition that Licensed Provider agrees, and Licensed Provider therefore does agree, that Licensed Provider (1) will not use, directly or indirectly, the Confidential Information in any business or capacity or for any purpose other
than as needed in the performance of the Licensed Provider Services pursuant to and in accordance with this Agreement during and after the Agreement Term; (2) will maintain the absolute confidentiality of the Confidential Information during and after the Agreement Term and not directly or indirectly publish or otherwise disclose it to any third party; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media that may be copied or duplicated; and (4) will adopt and implement all reasonable procedures, including any that HealthSource or Management Company may prescribe from time to time, to prevent unauthorized use or disclosure of the Confidential Information, including without limitation restrictions on disclosure to or by Licensed Provider's employees, and the use of non-disclosure, non-solicitation, non-disparagement and non-competition agreements HealthSource or Management Company may prescribe or approve for Licensed Provider's owners, officers, directors, employees, independent contractors, or agents who may have access to the Confidential Information. Licensed Provider and Management Company acknowledge and agree that HealthSource is a third-party beneficiary of the foregoing covenants and agreements, but that HealthSource is under no duty or obligation to Licensed Provider or Management Company to enforce any such agreements for its or HealthSource's benefit. Licensed Provider's duties and obligations with respect to the Confidential Information shall survive the termination or expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Licensed Provider's use of Confidential Information is specifically conditioned on adhering to the terms of the agreement. The Licensed Provider acknowledges that the Confidential Information belongs to HealthSource and may contain trade secrets.
The Licensed Provider must agree not to use the Confidential Information, directly or indirectly, in any business or capacity or for any purpose other than what is needed to perform the Licensed Provider Services, and this applies both during and after the agreement term. They must maintain absolute confidentiality and not disclose it to any third party, and they cannot make unauthorized copies of the Confidential Information.
Furthermore, the Licensed Provider is required to implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information, including restrictions on disclosure by their employees and the use of non-disclosure, non-solicitation, non-disparagement, and non-competition agreements for anyone who may have access to the Confidential Information. These obligations regarding Confidential Information survive the termination or expiration of the agreement.