Does the Healthsource Chiropractic Development Agreement grant the developer the right to use Healthsource Chiropractic's marks or system?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
nal programs, products and services may change from time to time.
- C. The System and Clinics are identified by means of certain trade names, service marks, trademarks, logos, emblems, and indicia of origin, including, but not limited, to the mark "HEALTHSOURCE", "HS", and "America's Chiropractor" and such other trade names, service marks, and trademarks as are now designated and may hereafter be designated by Franchisor in writing for use in connection with the System (the "Marks"). The parties agree and acknowledge that Franchisor has established substantial goodwill and business value in its Marks, expertise, and System.
- D. Franchisor grants qualified third parties the right to develop a certain number of Clinics within a defined site selection area (the "Site Selection Area") in accordance with the terms of this Agreement to which Developer must be strictly adhere, with each Clinic within the Site Selection Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then-current form of franchise agreement (each, a "Franchise Agreement").
- E. Developer recognizes the benefits from receiving the right to operate a Clinic utilizing the System and desires to: (i) become a multi-unit operator subject to the terms of this Agreement; and (ii) receive the benefits provided by Franchisor under this Agreement.
- F. Developer has applied for the right to open and operate a certain number of Clinics within the Site Selection Area as set forth in this Agreement (each, a "Clinic"), and Franchisor has approved such application in reliance on Developer's representations made therein.
- G. Developer hereby acknowledges that adherence to the terms of this Agreement, including Franchisor's operations manual and other System standards and specifications, are essential to the operation of all Clinics and the System as a whole.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENT
- Site Selection Area; Development Schedule and Obligations.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Development Agreement grants developers the right to develop a certain number of clinics within a defined site selection area. These clinics must be opened and operated utilizing Healthsource Chiropractic's marks and system. This is done under the terms and conditions set forth in the then-current form of the franchise agreement.
Healthsource Chiropractic identifies its system and clinics through trade names, service marks, trademarks, logos, emblems, and indicia of origin. These include, but are not limited to, the marks "HEALTHSOURCE", "HS", and "America's Chiropractor", as well as other trademarks designated by the franchisor in writing for use with the system. The agreement acknowledges that Healthsource Chiropractic has established substantial goodwill and business value in its marks, expertise, and system.
The franchisee's right to use Healthsource Chiropractic's marks is derived solely from the franchise agreement. This right is limited to the operation of the franchise in compliance with the agreement and all applicable standards, specifications, and operating procedures prescribed by Healthsource Chiropractic. This includes the timely payment of the initial franchise fee, continuing franchise fees, advertising fees, and all other sums due to Healthsource Chiropractic.
Healthsource Chiropractic retains the right to regulate the use of its marks, including any use in electronic media such as websites or as a domain name. Unauthorized use of the marks during or after the term of the agreement constitutes a breach of the agreement and an infringement of Healthsource Chiropractic's rights. All goodwill established through the franchisee's use of the marks inures exclusively to the benefit of Healthsource Chiropractic. Healthsource Chiropractic reserves the right to change its marks and specifications when it believes such changes will benefit the system, and franchisees are required to conform to these changes at their own expense.