When must the General Manager deliver the Restrictive Covenant Agreement to Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree that you will cause each General Manager to enter into and deliver to us a Restrictive Covenant Agreement in such form as we may approve, either concurrently with the execution of this Agreement or at such later date when the affiliation of such person with you is established. You acknowledge and agree that we are under no duty or obligation to you to enforce any such Agreements for your or our benefit. The duties and obligations imposed in the Restrictive Covenant Agreement shall survive the Transfer, expiration or earlier termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the General Manager must deliver the Restrictive Covenant Agreement either concurrently with the execution of the Franchise Agreement or at a later date when their affiliation with the franchisee is established. The specific form of this agreement must be one that Healthsource Chiropractic approves.
This agreement ensures that the General Manager is bound by certain restrictions, likely including non-competition, non-solicitation, and non-disparagement clauses, similar to those imposed on the franchisee themselves. These restrictions are designed to protect Healthsource Chiropractic's confidential information, customer relationships, and brand reputation.
Healthsource Chiropractic is not obligated to enforce these agreements for the benefit of the franchisee. The obligations within the Restrictive Covenant Agreement will remain in effect even if the Franchise Agreement is transferred, expires, or is terminated early. This highlights the importance of carefully reviewing the terms of the Restrictive Covenant Agreement and understanding its long-term implications for the General Manager.