What was the monetary amount Healthsource Chiropractic paid to Dr. Dudley as part of the settlement agreement?
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 settlement was reached with Dr. Donald R. Dudley in February 2013. As part of this settlement, Healthsource Chiropractic agreed to pay Dr. Dudley $20,000.00. In return, Healthsource Chiropractic agreed not to use the HealthSource Chiropractic mark (or the name HealthQuest) in specific counties within New York State. These counties include Wayne, Ontario, Livingston, Orleans, Genesee, and Monroe. The settlement documents were finalized on December 5, 2013, and the lawsuit was dismissed with prejudice on March 6, 2014.
For a prospective franchisee, this settlement has a direct impact on where they can operate a Healthsource Chiropractic franchise using the HealthSource Chiropractic mark. Specifically, if a franchisee is considering opening a location in any of the listed New York counties, they will not be permitted to use the HealthSource Chiropractic mark. This restriction could significantly affect the franchisee's marketing and branding strategies in that region, potentially requiring them to operate under a different name or brand identity.
It is important for potential franchisees to carefully consider these geographic limitations, especially if they have a specific interest in operating in the New York counties mentioned. They should also inquire about any alternative branding or marketing strategies that Healthsource Chiropractic might offer to mitigate the impact of this restriction. Understanding these limitations is crucial for making an informed decision about investing in a Healthsource Chiropractic franchise.