During what period can a Healthsource Chiropractic franchisee use the Confidential Information?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disclose the Confidential Information to you in the initial training program described in Item 11, the Operations Manual lent to you, and guidance furnished to you during the term of your franchise. You will not acquire any interest in the Confidential Information other than the right to use it in the development and operation of your franchise during the term of the franchise.
The Confidential Information is proprietary, and, except to the extent that it is or becomes generally known in the industry or trade, is our trade secret, and is disclosed to you solely for your use in the operation of your franchise during the term of the franchise. You (1) must not use, directly or indirectly, the Confidential Information in any other business or capacity or for any purpose other than as needed in the development or operation of your franchise during the term of the franchise; (2) must maintain the confidentiality of the Confidential Information during and after the term of the franchise and not directly or indirectly publish or otherwise disclose it to any third party; (3) must not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media; and (4) must adopt and implement all reasonable procedures, including any that we may prescribe periodically, to prevent the unauthorized use or disclosure of any of the Confidential Information, including restrictions on disclosure to your employees and the use of nondisclosure clauses in employment agreements with your employees.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 50–51)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a franchisee is granted the right to use the Confidential Information only during the term of the franchise agreement. This proprietary information, which includes methods, techniques, procedures, systems, and knowledge related to the operation of Healthsource Chiropractic franchises, is disclosed to the franchisee during the initial training program, through the Operations Manual, and via ongoing guidance.
Healthsource Chiropractic emphasizes that franchisees do not acquire any ownership interest in the Confidential Information itself, but merely a limited right to utilize it for the specific purpose of developing and operating their franchise. This means that upon termination or expiration of the franchise agreement, the franchisee's right to use this information ceases.
Healthsource Chiropractic also stipulates that franchisees must maintain the confidentiality of this information both during and after the franchise term. They are prohibited from using it in any other business or capacity, or from disclosing it to third parties. This is a standard practice in franchising, as protecting proprietary information is crucial for maintaining a brand's competitive advantage and consistency across all franchise locations.