What covenants does Healthsource Chiropractic require the general manager to conform with?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
y participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager, then the general manager will supervise the day-to-day operation of your franchise. You must not hire any general manager without our prior written approval of his or her qualifications. Each general manager and successor general manager must attend and complete our initial training
program for your franchise prior to commencing the role of General Manager (see Item 11). We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y).
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 51–52)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, if a franchisee employs a general manager, that general manager must adhere to certain covenants. Specifically, the general manager cannot have any interest in or business relationship with any business competitor of the Healthsource Chiropractic franchise.
Additionally, the general manager must sign a written agreement to maintain the confidentiality of proprietary information, as detailed in Item 14 of the FDD. The general manager must also conform to the non-competition covenants outlined in Items 17(q) and 17(r), as well as the non-disparagement and non-solicitation covenants described in Items 17(x) and 17(y) of the Healthsource Chiropractic FDD.
Upon termination of the franchise agreement, the general manager must immediately comply with the restrictive covenants set forth in the agreement and any Restrictive Covenants Agreement signed by the General Manager, as applicable.