If a HealthSource Chiropractic franchisee develops improvements, can HealthSource Chiropractic authorize other franchisees to use them?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, in the course of the operation of your Franchise, you or your employees may develop ideas, concepts, methods, or techniques of improvement relating to the Franchise that you agree to disclose to us, and that we may then authorize you to use in the operation of your Franchise, and may use or authorize others to use in other HealthSource Chiropractic franchises owned or franchised by us or our affiliates. (All of such information disclosed to or developed by you will be referred to in this Agreement as our "Confidential Information".)
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 HealthSource Chiropractic Franchise Agreement, HealthSource Chiropractic has the right to authorize other franchisees to use improvements developed by a franchisee. Specifically, the franchise agreement states that if a franchisee or their employees develop ideas, concepts, methods, or techniques of improvement relating to the franchise, they agree to disclose these to HealthSource Chiropractic.
HealthSource Chiropractic may then authorize the franchisee who developed the improvement to use it in their own franchise operation. Furthermore, HealthSource Chiropractic retains the right to use or authorize other franchisees to use these improvements in other HealthSource Chiropractic franchises owned or franchised by them or their affiliates.
This clause ensures that innovations and improvements developed within the HealthSource Chiropractic franchise system can be shared and implemented across the network, potentially benefiting all franchisees. However, it also means that a franchisee who develops a valuable improvement does not have exclusive rights to it and must share it with the franchisor, who can then disseminate it throughout the system.