What costs will Healthsource Chiropractic reimburse a franchisee for in the defense of a trademark infringement claim?

According to the 2025 Healthsource Chiropractic Franchise Agreement, Healthsource Chiropractic does not offer reimbursement for expenses related to trademark infringement. The agreement states that if a franchisee makes unauthorized use of the Healthsource Chiropractic marks, it constitutes a breach of the agreement and an infringement of Healthsource Chiropractic's rights.

The agreement explicitly states that Healthsource Chiropractic need not reimburse a franchisee for any loss of revenue due to a modified or discontinued mark. Furthermore, Healthsource Chiropractic will not cover expenses incurred by the franchisee when changing to, or promoting, a modified or substitute trademark or service mark. The franchisee is responsible for conforming to any changes to the marks at their own expense.

This means that if Healthsource Chiropractic decides to change its marks, or if a franchisee is found to be infringing on the trademarks, the franchisee bears the full financial burden of adapting to the changes or defending against infringement claims. This is a notable risk for prospective franchisees, as they must be prepared to cover these costs independently, which could potentially impact their profitability.