Can Healthsource Chiropractic license others to establish and operate businesses different from Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve the right to engage in any activities we deem appropriate that your Franchise Agreement does not expressly prohibit, whenever and wherever we desire, including the right to (a) operate, or grant to others the right to operate, HealthSource Chiropractic Clinic franchises physically located outside of your Protected Territory on terms and conditions we deem appropriate; and (b) offer or operate other healthcare-related companies or franchises, or enter into other lines of business, offering products and services that are similar or dissimilar to those offered by HealthSource Chiropractic franchises, both in and outside of your Protected Territory, under trademarks and service marks other than the Marks without any compensation to you, and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); (c) the right to sell or distribute, at retail or wholesale, directly or indirectly, or via the internet or any other means, or license others to sell or distribute, via any means (including the internet and other channels of distribution) any products that bear any proprietary marks, including the Marks, whether within or outside your Protected Territory; (d) the right to own, acquire, establish, and/or operate, and license others to establish and operate, businesses different from HealthSource
Chiropractic franchises but operated under the Marks within or outside your Protected Territory, and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); and (e) the right to be acquired (whether though acquisition of assets, or equity interests or otherwise, regardless of the form of transaction) by a business or entity providing products and services similar to those provided by HealthSource Chiropractic franchises even if that business or entity operates, franchises, or licenses competitive businesses in your Protected Territory. We and our affiliates have used and reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, and other direct marketing, to make or solicit such sales under trademarks and service marks other than the Marks.
Source: Item 12 — Territory (FDD pages 44–47)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Healthsource Chiropractic and its affiliates retain specific rights regarding other business ventures. Healthsource Chiropractic reserves the right to license others to establish and operate businesses different from Healthsource Chiropractic franchises, even those operated under Healthsource Chiropractic's marks, within or outside a franchisee's protected territory. They can also use various distribution channels like the internet, email, social media, and telemarketing for these businesses. This means that while franchisees operate their Healthsource Chiropractic clinics, the franchisor can explore other business models, potentially impacting the market or creating competition, although they would be under the same brand.
This reservation of rights also extends to Healthsource Chiropractic's ability to offer or operate other healthcare-related companies or franchises with similar or dissimilar products and services under different trademarks, both inside and outside a franchisee's protected territory, without compensating the franchisee. They can also sell or distribute products bearing their marks through any means, including the internet, or license others to do so. Furthermore, Healthsource Chiropractic can be acquired by a business providing similar services, even if that business operates competitive franchises within a franchisee's protected territory.
For a prospective franchisee, this indicates that Healthsource Chiropractic retains considerable flexibility to diversify its business activities and partner with other entities, even if those activities could potentially compete with existing franchisees. While franchisees are granted a protected territory for their specific Healthsource Chiropractic clinic, this protection does not extend to other business ventures that Healthsource Chiropractic or its affiliates may pursue. Franchisees should carefully consider these reserved rights and how they might affect their business before investing in a Healthsource Chiropractic franchise.