factual

What is the Healthsource Chiropractic franchisee's obligation regarding the confidentiality of the Confidential Information after the franchise agreement terminates or expires?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.

You further agree that all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease using any Confidential Information and is prohibited from using it in any business or for any other purpose. The franchisee also agrees that all non-disclosure and related covenants outlined in Section 9 of the agreement will remain in effect even after termination or expiration.

Furthermore, the franchisee is obligated to promptly return all copies of the Operations Manual and any written Confidential Information or other confidential materials that Healthsource Chiropractic has provided. This ensures that Healthsource Chiropractic's proprietary information remains protected and is not used to the detriment of the franchise system.

These obligations are typical in franchising to protect the franchisor's intellectual property and trade secrets. A prospective Healthsource Chiropractic franchisee should understand that these confidentiality obligations extend beyond the term of the franchise agreement, which could impact their future business ventures should they choose to pursue other opportunities in the same or related fields after leaving the Healthsource Chiropractic system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.