After the franchise term ends, what are my obligations regarding the confidentiality of Healthsource Chiropractic's Confidential Information?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 14: Patents, Copyrights, and Proprietary Information]
The Confidential Information is proprietary, and, except to the extent that it is or becomes generally known in the industry or trade, is our trade secret, and is disclosed to you solely for your use in the operation of your franchise during the term of the franchise. You (1) must not use, directly or indirectly, the Confidential Information in any other business or capacity or for any purpose other than as needed in the development or operation of your franchise during the term of the franchise; (2) must maintain the confidentiality of the Confidential Information during and after the term of the franchise and not directly or indirectly publish or otherwise disclose it to any third party; (3) must not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media; and (4) must adopt and implement all reasonable procedures, including any that we may prescribe periodically, to prevent the unauthorized use or disclosure of any of the Confidential Information, including restrictions on disclosure to your employees and the use of nondisclosure clauses in employment agreements with your employees.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 50–51)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees are obligated to maintain the confidentiality of the Confidential Information both during and after the franchise term. This means that even after the franchise agreement ends, the franchisee cannot directly or indirectly publish or disclose Healthsource Chiropractic's Confidential Information to any third party.
The Confidential Information includes methods, techniques, procedures, information, systems, and knowledge related to the design and operation of Healthsource Chiropractic franchises. This encompasses various aspects such as services and products offered, sources of products, advertising and promotional programs, franchise image and decor, operational methods, copyrighted materials, and employee training methods.
Furthermore, franchisees must not use the Confidential Information in any other business or capacity other than for the operation of their Healthsource Chiropractic franchise during the term of the agreement. They are also prohibited from making unauthorized copies of any Confidential Information. Franchisees are required to implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information, including imposing restrictions on disclosure to employees and using non-disclosure clauses in employment agreements. This obligation extends indefinitely, even after the franchise agreement expires or is terminated.