What is the permitted use of Confidential Information by the Licensed Provider for Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Licensed Provider acknowledges and agrees that the Confidential Information belongs to HealthSource, may contain trade secrets belonging to HealthSource, and is disclosed to Licensed Provider or authorized for his/her/its use solely on the condition that Licensed Provider agrees, and Licensed Provider therefore does agree, that Licensed Provider (1) will not use, directly or indirectly, the Confidential Information in any business or capacity or for any purpose other
than as needed in the performance of the Licensed Provider Services pursuant to and in accordance with this Agreement during and after the Agreement Term; (2) will maintain the absolute confidentiality of the Confidential Information during and after the Agreement Term and not directly or indirectly publish or otherwise disclose it to any third party; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media that may be copied or duplicated; and (4) will adopt and implement all reasonable procedures, including any that HealthSource or Management Company may prescribe from time to time, to prevent unauthorized use or disclosure of the Confidential Information, including without limitation restrictions on disclosure to or by Licensed Provider's employees, and the use of non-disclosure, non-solicitation, non-disparagement and non-competition agreements HealthSource or Management Company may prescribe or approve for Licensed Provider's owners, officers, directors, employees, independent contractors, or agents who may have access to the Confidential Information. Licensed Provider and Management Company acknowledge and agree that HealthSource is a third-party beneficiary of the foregoing covenants and agreements, but that HealthSource is under no duty or obligation to Licensed Provider or Management Company to enforce any such agreements for its or HealthSource's benefit. Licensed Provider's duties and obligations with respect to the Confidential Information shall survive the termination or expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Licensed Provider can only use Confidential Information as needed to perform Licensed Provider Services, and this must be done according to the terms of the agreement both during and after the agreement's term. The Licensed Provider cannot use the Confidential Information in any other business or for any other purpose. This restriction is designed to protect Healthsource Chiropractic's proprietary information and maintain a fair competitive environment.
The Licensed Provider must maintain absolute confidentiality and is prohibited from publishing or disclosing the Confidential Information to any third party, either directly or indirectly, during and after the agreement term. Unauthorized copies of the Confidential Information are also prohibited. This ensures that Healthsource Chiropractic's trade secrets and operational methods remain protected from competitors and unauthorized individuals.
The Licensed Provider is required to implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information. These procedures may include restrictions on disclosure to employees and the use of non-disclosure, non-solicitation, non-disparagement, and non-competition agreements for the Licensed Provider's owners, officers, directors, employees, independent contractors, or agents. These measures are intended to create a secure environment that safeguards Healthsource Chiropractic's Confidential Information from misuse or leakage. The obligations regarding Confidential Information survive the termination or expiration of the agreement.