What is the duration of the non-compete period for principal owners of a Healthsource Chiropractic franchise after the franchise agreement's expiration, termination, or transfer?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
the new owner to make | | | | installment payments of the purchase | | | | price to you or your Principal Owners | | | | will be subordinate to the obligations |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| of the new owner to pay any amounts payable under the Franchise Agreement or any new Franchise Agreement that we may require the new owner to sign in connection with the transfer, and containing a general release of any claims that you may have against us. (see Exhibit I). | ||
| n. Our right of first refusal to | Not applicable. | Not applicable. |
| acquire your business | ||
| o. Our option to purchase your | Not applicable. | Not applicable. |
| business | ||
| p. Death or disability of franchisee | Section 14.6 | Executor, administrator, or other personal representative must transfer interest within 12 months; all transfers are subject to provisions in Franchise Agreement regulating transfers. |
| q. Non-competition covenants during the term of the franchise | Section 9.3 and 17.8 | Neither you, your Principal Owners, General Managers, nor any immediate family members of you or your Principal Owners may perform services for or have any interest in any competitive business. |
| r. Non-competition covenants after | Not applicable | Not applicable. |
| the franchise is terminated or | ||
| expires | ||
| s. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Item 17 indicates that the specifics regarding non-competition covenants after the franchise is terminated or expires are not applicable within the Development Agreement. Instead, the document directs prospective franchisees to refer to the non-competition covenants outlined in the Franchise Agreement(s) entered into under the Development Agreement. However, when looking at the Franchise Agreement, the FDD states that non-competition covenants after the franchise is terminated or expires are also not applicable.
This suggests that the FDD excerpts provided do not contain information regarding the duration of the non-compete period for principal owners after the franchise agreement's expiration, termination, or transfer.
Therefore, a prospective Healthsource Chiropractic franchisee should directly ask the franchisor for details about the non-compete obligations that apply after the termination or expiration of the franchise agreement to fully understand these restrictions.