Can Healthsource Chiropractic prescribe or approve non-disclosure, non-solicitation, non-disparagement and non-competition agreements for a franchisee's personnel?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.4 Licensed Provider further agrees that it will cause Licensed Provider's employees to enter into and deliver to Management Company a "Restrictive Covenant Agreement" in such
form as Management Company may prescribe, either concurrently with the execution of this Agreement or at such later date as determined by Management Company.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, franchisees are required to ensure their employees sign a Restrictive Covenant Agreement. Healthsource Chiropractic has the authority to prescribe the form of this agreement, either at the time of the Franchise Agreement's execution or at a later date determined by Healthsource Chiropractic.
This requirement means that as a Healthsource Chiropractic franchisee, you must ensure your employees agree to certain restrictions to protect Healthsource Chiropractic's interests. These restrictions likely include clauses related to non-disclosure of confidential information, non-competition, non-solicitation of patients and employees, and non-disparagement of the Healthsource Chiropractic brand.
The fact that Healthsource Chiropractic can dictate the terms of the Restrictive Covenant Agreement provides them with significant control over the behavior of your employees, even after they leave your employment. This is designed to protect Healthsource Chiropractic's confidential information, customer relationships, and brand reputation. Franchisees should carefully review the standard Restrictive Covenant Agreement to understand the specific obligations it places on their employees.