What constitutes the Confidential Information that Healthsource Chiropractic will disclose?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have developed proprietary confidential information comprising methods, techniques, procedures, information, systems, and knowledge of and experience in the design and operation of HealthSource Chiropractic franchises, including but not limited to (1) services and products offered and sold at HealthSource Chiropractic franchises and knowledge of sales and profit performance of any one or more HealthSource Chiropractic franchises; (2) sources of products sold from HealthSource Chiropractic franchises; (3) advertising and promotional programs and image and decor; (4) HealthSource Chiropractic franchise image and decor; (5) methods, techniques, formats, specifications, procedures, information, systems and knowledge of and experience in the development, operation, and franchising of HealthSource Chiropractic franchises; (6) copyrighted or copyrightable materials, including, without limitation, office forms and procedures, training, promotional, and marketing materials, telephone scripts and the content of the Operations Manual and other works of authorship under or in connection with the operation of the System; and (7) the methods of training employees (collectively, the "Confidential Information"). We will disclose the Confidential Information to you in the initial training program described in Item 11, the Operations Manual lent to you, and guidance furnished to you during the term of your franchise. You will not acquire any interest in the Confidential Information other than the right to use it in the development and operation of your franchise during the term of the franchise.
The Confidential Information is proprietary, and, except to the extent that it is or becomes generally known in the industry or trade, is our trade secret, and is disclosed to you solely for your use in the operation of your franchise during the term of the franchise. You (1) must not use, directly or indirectly, the Confidential Information in any other business or capacity or for any purpose other than as needed in the development or operation of your franchise during the term of the franchise; (2) must maintain the confidentiality of the Confidential Information during and after the term of the franchise and not directly or indirectly publish or otherwise disclose it to any third party; (3) must not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media; and (4) must adopt and implement all reasonable procedures, including any that we may prescribe periodically, to prevent the unauthorized use or disclosure of any of the Confidential Information, including restrictions on disclosure to your employees and the use of nondisclosure clauses in employment agreements with your employees.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 50–51)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Confidential Information comprises proprietary methods, techniques, procedures, information, systems, and knowledge related to the design and operation of HealthSource Chiropractic franchises. This includes services and products offered, knowledge of sales and profit performance, sources of products, advertising and promotional programs, image and decor, methods for development, operation, and franchising, copyrighted materials like office forms and training materials, and employee training methods. Healthsource Chiropractic will disclose this Confidential Information during the initial training program, through the Operations Manual, and via ongoing guidance during the franchise term.
Healthsource Chiropractic considers this Confidential Information proprietary and a trade secret, only to be used for operating the franchise. Franchisees must maintain its confidentiality during and after the franchise term, and are prohibited from using it in any other business or disclosing it to third parties. Franchisees also cannot make unauthorized copies of the Confidential Information.
Healthsource Chiropractic requires franchisees to implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information, including restricting disclosure to employees and using non-disclosure clauses in employment agreements. This underscores the importance Healthsource Chiropractic places on protecting its proprietary information and maintaining a competitive advantage within the chiropractic franchise industry. Prospective franchisees should carefully consider these obligations and ensure they have the resources and commitment to safeguard this information.