Does a Healthsource Chiropractic franchisee acquire any ownership interest in the Confidential Information?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership interest in the Confidential Information. The Confidential Information includes methods, techniques, procedures, information, systems, and knowledge related to the design and operation of HealthSource Chiropractic franchises. This information is disclosed to franchisees through the initial training program, the Operations Manual, and ongoing guidance during the franchise term.

Healthsource Chiropractic retains ownership of the Confidential Information, granting franchisees only the right to use it for developing and operating their franchise during the franchise term. Franchisees are explicitly prohibited from using the Confidential Information in any other business or capacity, or for any purpose other than operating their Healthsource Chiropractic franchise. They must also maintain the confidentiality of the information both during and after the franchise term, and are not allowed to disclose it to any third party or make unauthorized copies.

To protect the Confidential Information, Healthsource Chiropractic franchisees must implement reasonable procedures to prevent unauthorized use or disclosure, including restricting disclosure to employees and using non-disclosure clauses in employment agreements. This ensures that the proprietary information remains protected and is not used to the detriment of the Healthsource Chiropractic system. These restrictions are typical in franchising, as the franchisor needs to protect its competitive advantage and brand identity.