From where does a Healthsource Chiropractic franchisee's right to use the Marks derive?
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.
You must use the Marks as the sole identification of your franchise, but must also identify yourself as the independent owner of the franchise in the manner we prescribe. You may not use any Mark as part of any corporate or trade name, or with any prefix, suffix, or other modifying words, terms, designs or symbols, or in any modified form. You also may not use any Mark with the sale of any unauthorized service, to promote any business or commercial venture other than your Clinic franchise, or in any manner we have not expressly authorized in writing. You must prominently display the Marks on or with franchise posters and displays, service contracts, stationery, other forms we designate, and in the manner we prescribe; to give any notices of trade and service mark registrations and copyrights that we specify; and to obtain any fictitious or assumed name registrations that may be required under applicable law.
Source: Item 13 — Trademarks (FDD pages 47–50)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee's right to use the brand's trademarks is derived solely from the Franchise Agreement. This right is specifically limited to conducting business in compliance with the Franchise Agreement, including adherence to all specifications, standards, and operating procedures prescribed by Healthsource Chiropractic. Compliance also includes the timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, and all other sums due to Healthsource Chiropractic. Unauthorized use of the marks constitutes an infringement of Healthsource Chiropractic's rights.
This means that as a Healthsource Chiropractic franchisee, your ability to legally use the brand's name, logos, and other trademarks is contingent upon your adherence to the terms of the Franchise Agreement. You must operate your clinic according to Healthsource Chiropractic's standards and ensure all payments are current. Failure to meet these obligations could result in the loss of your right to use the trademarks and potential legal action from the franchisor.
Furthermore, the Franchise Agreement stipulates that all goodwill established through the use of the marks will be for the exclusive benefit of Healthsource Chiropractic, and the agreement does not confer any goodwill or other interests in the marks upon the franchisee. Franchisees must use the marks as the sole identification of their franchise while also identifying themselves as the independent owner in the manner prescribed by Healthsource Chiropractic. Franchisees are prohibited from using any mark as part of any corporate or trade name, or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modified form, or with the sale of any unauthorized service.
In practical terms, this means a Healthsource Chiropractic franchisee cannot build equity in the Healthsource Chiropractic brand itself. The franchisee is essentially renting the brand name and must follow strict guidelines on how it is presented to the public. This is a common arrangement in franchising, where the franchisor retains control over its brand identity and reputation, and it is important for prospective franchisees to understand these limitations.