Is a Healthsource Chiropractic Licensed Provider allowed to make negative statements about HealthSource franchisees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.3 Non-Competition Agreement and Other Restrictive Covenants.
- (b) Non-Disparagement. Licensed Provider agrees that during the Agreement Term and thereafter, Licensed Provider will not, directly or indirectly, make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) Management Company, the Clinic Management Business, HealthSource or any of its franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of Management Company's or HealthSource's respective owners, officers, directors, employees, consultants or agents.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Licensed Provider is restricted from making negative statements about Healthsource Chiropractic or its franchisees. Specifically, during the term of the agreement and even after its termination, the Licensed Provider is prohibited from directly or indirectly making any negative or critical statements to third parties. This restriction applies to statements made verbally or through any other form of media.
This non-disparagement clause extends to statements about the Management Company, the Clinic Management Business, Healthsource Chiropractic, its franchisees, and their respective products, services, businesses, or business practices. It also covers statements about the actions, operations, or character of the owners, officers, directors, employees, consultants, or agents of the Management Company or Healthsource Chiropractic.
For a prospective Healthsource Chiropractic franchisee, this clause has significant implications. It means that the licensed provider associated with their clinic cannot publicly criticize the Healthsource Chiropractic system, other franchisees, or the company's leadership. This restriction aims to protect the brand's reputation and maintain a positive image. Franchisees should ensure their licensed providers fully understand and agree to these terms to avoid potential breaches of the agreement.
Non-disparagement clauses are common in franchise agreements to protect the brand and maintain a consistent public image. However, franchisees should carefully review the scope of these clauses to understand what types of statements are prohibited and the potential consequences of violating the clause.