What constitutes a breach of the Healthsource Chiropractic franchise agreement regarding copyrighted works?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Clinic Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service 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 HealthSource Chiropractic franchise or franchisee;
- b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Worksin 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 any Copyrightable Works or otherwise relating to a HealthSource Chiropractic 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.
You irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, using the brand's Marks and Copyrightable Works after the termination or expiration of the Clinic Franchise is considered an unlawful use of their intellectual property rights, which include trademarks and service marks. This means that a franchisee cannot continue to use Healthsource Chiropractic's logos, marketing materials, or other copyrighted content once the franchise agreement ends.
Specifically, after the franchise terminates or expires, the franchisee must not identify any business as a current or former HealthSource Chiropractic franchise, use any Mark or imitation of a Mark, or use any Copyrightable Works. The franchisee is also required to return or destroy all customer lists, forms, and materials containing any Mark or Copyrightable Works. Additionally, the franchisee must remove all Marks from uniforms or cease using those uniforms and take action to cancel any registrations related to the use of any Mark.
HealthSource Chiropractic retains the right to act as the franchisee's attorney-in-fact to ensure these actions are completed within 10 days after termination if the franchisee fails to do so. These measures are in place to protect Healthsource Chiropractic's brand identity and prevent any confusion or association with former franchisees after the agreement has ended. This is a standard practice in franchising, as franchisors need to maintain control over their intellectual property to ensure consistency and protect their brand reputation.