Who owns the intellectual property rights to the Healthsource Chiropractic System Website?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement, then HealthSource Chiropractic reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set forth in Section 16 shall apply.
7. MARKS; COPYRIGHTED WORKS.
7.1 Ownership and Goodwill of Marks
a. You acknowledge that your right to use the Marks is derived solely from this Agreement, and is limited to your operation of the Franchise pursuant to and in compliance with this Agreement and all applicable standards, specifications, and operating procedures we prescribe from time to time during the Term of this Agreement, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, and all other sums due to us.
b. You understand and acknowledge that our right to regulate the use of the Marks includes, without limitation, any use of the Marks in any form of electronic media, such as Websites or web pages, or as a domain name or electronic media identifier.
c. If you make any unauthorized use of the Marks either during or after the Term of this Agreement, it will constitute a breach of this Agreement and an infringement of our rights in and to the Marks.
d. You acknowledge and agree that all your usage of the Marks and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in compliance with this Agreement).
e. All provisions of this Agreement applicable to the Marks will apply to any additional trademarks, service marks, commercial symbols, designs, artwork, or logos we may authorize and/or license you to use during the Term of this Agreement.
f. HealthSource Chiropractic has invested substantial time, energy, and money in the promotion and protection of its Marks as they exist on the date of this Agreement. However, rights in intangible property such as the Marks are often difficult to establish and defend. In addition, other circumstances, such as changes in the cultural and economic environment within which the System operates, changes in marketing or other strategies, or third-party challenges to HealthSource Chiropractic's rights in the Marks, may make changes in the Marks desirable or necessary. HealthSource Chiropractic therefore reserves the right to change its Marks and the specifications for each when we believe that such changes will benefit the System. You will promptly conform at your own expense, to any such changes.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Agreement, Healthsource Chiropractic retains ownership of the intellectual property rights to its website. As stated in paragraph 7.1a, the franchisee's right to use Healthsource Chiropractic's marks is derived solely from the franchise agreement. This right is limited to operating the franchise in compliance with the agreement's terms, including the timely payment of all required fees. Paragraph 7.1b clarifies that Healthsource Chiropractic's control over its marks extends to their use in any form of electronic media, including websites and domain names.
Section 15.4 outlines Healthsource Chiropractic's right to deny a franchisee access to the Healthsource Chiropractic website or intranet, and to remove the franchisee's business from the website's locator page or interior pages if the franchisee is not in full compliance with their obligations under the agreement or operations manual. This further underscores Healthsource Chiropractic's control over the website and its content.
Upon termination or expiration of the franchise agreement, Section 16.2 states that the franchisee must cease all use of Healthsource Chiropractic's marks and copyrighted works, including on websites. Continued use of these marks after termination constitutes unlawful use of Healthsource Chiropractic's intellectual property rights. This includes trademarks and service marks, reinforcing that the website and its contents remain the property of Healthsource Chiropractic, not the franchisee.