Is a Healthsource Chiropractic Licensed Provider required to have their employees sign a Restrictive Covenant Agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.4 Licensed Provider further agrees that it will cause Licensed Provider's employees to enter into and deliver to Management Company a "Restrictive Covenant Agreement" in such
form as Management Company may prescribe, either concurrently with the execution of this Agreement or at such later date as determined by Management Company.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, a Licensed Provider is required to ensure that their employees sign and deliver a Restrictive Covenant Agreement to Management Company. The specific form of this agreement will be determined by Management Company and can be implemented either when the agreement is executed or at a later date.
This requirement ensures that Healthsource Chiropractic can protect its interests by restricting employees from actions that could harm the business, such as competing with the franchise or disclosing confidential information. This is a common practice in franchising to maintain brand consistency and protect trade secrets.
Additionally, Healthsource Chiropractic requires all employees and independent contractors to sign a written agreement, in a form approved by them, to maintain the confidentiality of their Confidential Information, proprietary information, and trade secrets. The Licensed Provider must also forward a copy of each signed agreement to Healthsource Chiropractic. This reinforces the importance of confidentiality and the legal obligation of employees to protect sensitive business information.