Who may Healthsource Chiropractic disclose the Licensed Provider's developed ideas, concepts, methods, or techniques of improvement to?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, in the course of the performance of the Licensed Provider Services, Licensed Provider (or its employees) may develop ideas, concepts, methods, or techniques of improvement relating to the Clinic Management Business that Licensed Provider agrees to disclose to Management Company, who then may disclose to HealthSource to use or authorize others to use in other HealthSource franchises owned or franchised by HealthSource or its affiliates.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a Licensed Provider develops ideas, concepts, methods, or techniques of improvement relating to the Clinic Management Business, the Licensed Provider agrees to disclose them to the Management Company. The Management Company may then disclose these to Healthsource Chiropractic. Healthsource Chiropractic may then use or authorize others to use these improvements in other Healthsource Chiropractic franchises owned or franchised by Healthsource Chiropractic or its affiliates.
This means that any innovations or improvements a franchisee or their employees develop in their Healthsource Chiropractic practice can be shared with the entire franchise system. While this could benefit the system as a whole, it also means the franchisee may not have exclusive rights to their own innovations.
Prospective franchisees should consider the implications of this clause. While contributing to the collective knowledge of the Healthsource Chiropractic system could be rewarding, franchisees should also understand they may not directly benefit financially from their innovations beyond their own practice. It would be prudent to discuss with Healthsource Chiropractic how such innovations are evaluated, implemented, and whether there are any mechanisms for recognizing or rewarding franchisees whose ideas are adopted system-wide.