What must the Principal Owners and General Manager of a Healthsource Chiropractic franchise do immediately upon termination of the franchise agreement?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, upon termination of the franchise agreement, the Principal Owners and General Manager must immediately adhere to the restrictive covenants outlined in the agreement and any Restrictive Covenants Agreement signed by the General Manager, if applicable. This implies that these individuals are bound by certain restrictions, likely concerning competition and confidentiality, which take effect immediately upon the termination of the franchise agreement.

These restrictive covenants are designed to protect Healthsource Chiropractic's business interests and prevent former franchisees and their key personnel from using confidential information or competing unfairly. Franchisees should carefully review these covenants before signing the agreement to understand the scope and duration of these restrictions, as they could significantly impact their future business activities.

It is common practice in franchising to include restrictive covenants to safeguard the franchisor's brand and proprietary information. These covenants typically restrict the franchisee from operating a similar business within a certain geographic area and for a specific period after the franchise agreement ends. The specific terms of these covenants can vary widely, so prospective Healthsource Chiropractic franchisees should seek legal counsel to fully understand their obligations.