Does the non-disparagement clause in the Healthsource Chiropractic agreement extend beyond the Agreement Term?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the non-disparagement clause extends beyond the term of the agreement. The agreement states that during the term of the agreement, and even after any transfer, termination, or expiration of the agreement, neither the franchisee, any principal owner, nor any member of their immediate family can directly or indirectly make negative or critical statements about Healthsource Chiropractic. This restriction applies to statements made to any third parties, whether verbally or in any other form or media. The restriction covers statements about Healthsource Chiropractic itself, its franchisees, regional developer franchisees, and their respective products, services, businesses, or business practices. It also includes statements about the actions, operations, or character of the owners, officers, directors, employees, consultants, or agents of Healthsource Chiropractic or its franchisees.

This means that even after a franchisee leaves the Healthsource Chiropractic system, they (and related parties) are still prohibited from making disparaging remarks about the brand. This type of clause is fairly common in franchise agreements to protect the brand's reputation. However, the indefinite nature of this clause is noteworthy.

A prospective Healthsource Chiropractic franchisee should consider the implications of this long-term restriction. While it is understandable that Healthsource Chiropractic wants to protect its brand, franchisees should be aware that their ability to publicly comment on their experiences with the franchise will be limited even after they are no longer part of the system. It would be prudent to seek legal counsel to fully understand the scope and enforceability of this clause, and to discuss with Healthsource Chiropractic the specific types of statements that would be considered disparaging.