What constitutes an unfair method of competition or irreparable damage to Management Company and/or Healthsource Chiropractic regarding Confidential Information?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, using or duplicating confidential information in any business or for any purpose other than performing Licensed Provider Services during the agreement term constitutes an unfair method of competition or could cause irreparable damage to the Management Company and/or Healthsource Chiropractic. Confidential information includes, but is not limited to, services and products offered at Healthsource Chiropractic franchises, knowledge of sales and profit performance, sources of products, advertising and promotional programs, methods, techniques, formats, specifications, procedures, information, systems, knowledge, experience in development, operation, and franchising, copyrighted materials, and methods of training employees.

Healthsource Chiropractic possesses unique confidential and proprietary information and trade secrets. This information is disclosed to the Licensed Provider for the performance of the Management Company Services and the operation of the Clinic Management Business. The Licensed Provider may also develop ideas, concepts, methods, or techniques of improvement relating to the Clinic Management Business, which they agree to disclose to the Management Company.

This clause protects Healthsource Chiropractic's proprietary information and trade secrets, preventing franchisees from using this information to compete unfairly. It ensures that franchisees only use the confidential information as intended within the franchise agreement. This restriction remains in place during the term of the agreement, safeguarding Healthsource Chiropractic's business model and competitive advantage.