What is the effect of Healthsource Chiropractic disclosing confidential information to me?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
- d. HealthSource's acceptance of the Deposit does not constitute the grant of any rights to me to operate a HealthSource chiropractic clinic or use HealthSource's marks, logos, information or materials in practice or otherwise, and that such rights may only be granted through a Franchise Agreement that has been duly executed by both me and HealthSource.
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- Non-Disclosure of Confidential Information. After I submit my Deposit, I further understand that HealthSource may disclose to me its confidential and proprietary information, including: (a) services and products offered and sold at HealthSource Chiropracticfranchises; (b) knowledge of sales and profit performance of any one or more HealthSource Chiropracticfranchises; (c) knowledge of sources of products sold at HealthSource Chiropracticfranchises, advertising and promotional programs, and image and decor; (d) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of HealthSource Chiropracticfranchises; and (e) the selection and methods of training employees, all of which may be disclosed verbally or visually via training programs, or in written form via HealthSource's Operations Manual, or otherwise (referred to as "Confidential Information" whether or not marked as such). I acknowledge and agree that HealthSource is the sole owner of the Confidential Information and that I and my employees, representatives and agents: (x) will not use the Confidential Information for any purpose other than the operation of a HealthSource franchise; (y) will maintain the absolute confidentiality of the Confidential Information; and (z) will not
make unauthorized copies of any portion of the Confidential Information, and will return to HealthSource all tangible materials and media containing Confidential Information, including all copies thereof, upon HealthSource's request.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, after submitting a deposit, Healthsource Chiropractic may disclose confidential and proprietary information to potential franchisees. This information includes details about services and products, sales and profit performance of franchises, sources of products, advertising programs, and methods for training employees. This information may be shared verbally, visually through training programs, or in written form, such as in the Healthsource Chiropractic Operations Manual.
As a potential franchisee, you must acknowledge that Healthsource Chiropractic owns this confidential information and agree to specific conditions. You can only use the information to operate a Healthsource Chiropractic franchise. You must maintain the confidentiality of the information and not make unauthorized copies. Upon request, all materials containing confidential information must be returned to Healthsource Chiropractic. These restrictions apply regardless of whether a Franchise Agreement is ultimately signed.
Even after the franchise agreement terminates, you must cease using any confidential information and agree not to use it in any business. All non-disclosure agreements remain in effect, and you must return all copies of the Operations Manual and any written confidential information. This ensures that Healthsource Chiropractic's proprietary information remains protected, even after the franchise relationship ends. This is a standard practice in franchising to protect the brand's competitive advantage and trade secrets.