Does the Healthsource Chiropractic franchise agreement grant franchisees any ownership interest in the Confidential Information?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees do not acquire any ownership interest in the confidential information. The franchise agreement specifies that the relationship between the franchisee (referred to as "Licensed Provider" in this context) and the Management Company does not grant the franchisee any ownership of the confidential information. Instead, franchisees are only granted the right to use the confidential information solely for performing services during the term of the agreement.

Healthsource Chiropractic emphasizes that using or duplicating the confidential information in any business other than the franchised business is considered an unfair method of competition. Such actions could cause irreparable damage to both the Management Company and Healthsource Chiropractic. This underscores the importance of maintaining the confidentiality and proprietary nature of the information provided to franchisees.

This arrangement is typical in franchising, where the franchisor retains ownership and control over its proprietary information and systems. This allows Healthsource Chiropractic to maintain consistency and protect its brand standards across all franchise locations. Prospective franchisees should understand that their rights to use the confidential information are limited to the scope and duration of the franchise agreement.