What happens to the ideas, concepts, methods, or techniques of improvement relating to the Clinic Management Business that the Licensed Provider develops for Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, in the course of the performance of the Licensed Provider Services, Licensed Provider (or its employees) may develop ideas, concepts, methods, or techniques of improvement relating to the Clinic Management Business that Licensed Provider agrees to disclose to Management Company, who then may disclose to HealthSource to use or authorize others to use in other HealthSource franchises owned or franchised by HealthSource or its affiliates. (All of such information disclosed to or developed by Licensed Provider will be referred to in this Agreement as the "Confidential Information".)
10.2 Non-Disclosure Agreement.
(a) Licensed Provider agrees that its relationship with Management Company does not vest in Licensed Provider any interest in the Confidential Information, other than the right to use it solely in the performance of the Licensed Provider Services during the Agreement Term, and that the use or duplication of the Confidential Information in any other business or for any other purpose would constitute an unfair method of competition or otherwise result in irreparable damage to Management Company and/or HealthSource.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a Licensed Provider develops any ideas, concepts, methods, or techniques of improvement related to the Clinic Management Business, they must disclose these to the Management Company. The Management Company may then disclose this information to Healthsource Chiropractic. Healthsource Chiropractic can then use this information or authorize others to use it in other Healthsource Chiropractic franchises owned or franchised by Healthsource Chiropractic or its affiliates. All such information disclosed to or developed by the Licensed Provider is considered "Confidential Information".
The Licensed Provider's relationship with the Management Company only allows them to use the Confidential Information during the term of the agreement for providing Licensed Provider Services. The Licensed Provider does not gain any ownership or interest in the Confidential Information itself. Using or copying the Confidential Information in any other business or for any purpose outside of the agreement would be considered unfair competition and cause irreparable damage to the Management Company and/or Healthsource Chiropractic.
This clause ensures that Healthsource Chiropractic can leverage improvements and innovations developed within individual clinics across the entire franchise system. However, it also means that a Licensed Provider will not have exclusive rights to their own innovations and must share them with Healthsource Chiropractic. This is a fairly standard practice in franchising, where the franchisor aims to maintain consistency and benefit from collective knowledge across the network.