When was the lawsuit between Healthsource Chiropractic and Dr. Dudley dismissed with prejudice?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
r use of "HealthSource Chiropractic" on the internet does not infringe on Dr. Dudley's right to use the mark in the Rochester, New York area.
The only issue that remained for determination by the Court related to the extent of Dr. Dudley's right to the "HealthSource Chiropractic" mark in the Rochester, New York area. In February 2013, we verbally settled the remaining issue with Dr. Dudley by agreeing not to use the HealthSource Chiropractic mark (or the name HealthQuest) in the counties of Wayne, Ontario, Livingston, Orleans, Genesee and Monroe in the State of New York and for a payment of $20,000.00. The settlement documents were completely signed by the parties on December 5, 2013 and the lawsuit was dismissed on March 6, 2014, with prejudice. Thus, if you purchase a franchise from us in the counties of Wayne, Ont
Source: Item 13 — Trademarks (FDD pages 47–50)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a lawsuit between Healthsource Chiropractic and Dr. Dudley was dismissed with prejudice on March 6, 2014. This lawsuit involved a dispute over the use of the "HealthSource Chiropractic" mark in the Rochester, New York area. The dismissal with prejudice indicates that the case was concluded and cannot be brought back to court.
Prior to the dismissal, Healthsource Chiropractic and Dr. Dudley reached a verbal settlement in February 2013, which was formalized with signed settlement documents on December 5, 2013. As part of the settlement, Healthsource Chiropractic agreed not to use the "HealthSource Chiropractic" mark (or the name HealthQuest) in specific counties in New York: Wayne, Ontario, Livingston, Orleans, Genesee, and Monroe. Healthsource Chiropractic also agreed to pay Dr. Dudley $20,000.00.
For a prospective franchisee, this information is crucial if they are considering opening a Healthsource Chiropractic franchise in any of the listed New York counties. The franchisee would be prohibited from using the "HealthSource Chiropractic" mark in their business operations in those specific areas due to the prior settlement. This restriction could impact marketing and branding strategies in those locations, and prospective franchisees should carefully consider this limitation.