Is a Healthsource Chiropractic franchisee's right to use the Marks dependent on timely payment of fees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to use the Marks is derived solely from your Franchise Agreement, and is limited to your conduct of business in compliance with the Franchise Agreement and all applicable specifications, standards, and operating procedures we prescribe during the term of your franchise, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, and all other sums due to us. Any unauthorized use of the Marks by you will constitute an infringement of our rights in and to the Marks. Your use of the Marks and any goodwill established by them will be for our exclusive benefit, and your Franchise Agreement does not confer any goodwill or other interests in the Marks upon you. All provisions of your Franchise Agreement applicable to the Marks will apply to any additional proprietary trade and service marks and commercial symbols authorized for use by, and licensed to you under, your Franchise Agreement. You may not at any time during or after the term of your franchise contest, or assist any other person in contesting, the validity or ownership of any of the Marks.
Source: Item 13 — Trademarks (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a franchisee's right to use the Healthsource Chiropractic marks is contingent upon compliance with the Franchise Agreement, including the timely payment of fees. This means that if a franchisee fails to make timely payments of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, or any other sums due to Healthsource Chiropractic, their right to use the trademarks can be revoked.
This condition is fairly standard in franchising, as franchisors need to protect their brand identity and ensure consistent standards across all franchise locations. By requiring franchisees to remain current on all payments, Healthsource Chiropractic can maintain control over its trademarks and ensure that franchisees are meeting their financial obligations. This protects the overall value and reputation of the Healthsource Chiropractic brand.
It is important for prospective Healthsource Chiropractic franchisees to understand that any unauthorized use of the marks constitutes an infringement of Healthsource Chiropractic's rights. The Franchise Agreement does not confer any goodwill or other interests in the marks to the franchisee; instead, all goodwill established through the use of the marks benefits Healthsource Chiropractic exclusively. Franchisees must also use the marks as the sole identification of their franchise and identify themselves as independent owners in the manner prescribed by Healthsource Chiropractic.