Does the Healthsource Chiropractic franchise agreement grant franchisees ownership of the copyrighted works?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Clinic Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service marks. You agree that after the termination or expiration of the Franchise you will:
- a. not directly or indirectly at any time identify any business with which you are associated as a current or former HealthSource Chiropractic franchise or franchisee;
- b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Worksin any manner or for any purpose, or use for any purpose any trademark or other commercial symbol that suggests or indicates an association with us;
- c. return to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or any Copyrightable Works or otherwise relating to a HealthSource Chiropractic franchise;
- d. remove all Marks affixed to uniforms or, at our direction, cease to use those uniforms; and
- e. take any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark.
You irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees do not gain ownership of copyrighted works. The agreement specifies that after the termination or expiration of the franchise, any use of the Marks and Copyrightable Works constitutes an unlawful use of Healthsource Chiropractic's intellectual property rights, including trademarks and service marks.
Upon termination or expiration, franchisees must not identify any business they are associated with as a current or former Healthsource Chiropractic franchise. They are prohibited from using any Mark, imitation of any Mark, or any Copyrightable Works for any purpose, or using any commercial symbol that suggests an association with Healthsource Chiropractic.
Furthermore, franchisees are required to return or destroy all customer lists, forms, and materials containing any Mark or Copyrightable Works, and remove all Marks from uniforms. They must also take action to cancel any registrations related to their use of any Mark. Healthsource Chiropractic is appointed as the attorney-in-fact to take these actions if the franchisee fails to do so within 10 days after termination of the agreement. This clearly indicates that the ownership of the Marks and Copyrightable Works remains with Healthsource Chiropractic, not the franchisee.