factual

What is the process by which Healthsource Chiropractic discloses knowledge of experience in the development, operation, and franchising of Healthsource Chiropractic franchises?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer from 2025 FDD Document

and/or (6) your breach of any provision of this Agreement.**

e. The allocation of responsibility and your indemnification obligations described above will continue in full force and effect after, and notwithstanding, the expiration, renewal or termination of this Agreement.

9. CONFIDENTIAL INFORMATION; NON-COMPETITION; OTHER COVENANTS.

9.1 Types of Confidential Information. We possess certain unique confidential and proprietary information and trade secrets consisting of the following categories of information, methods, techniques, products, services and knowledge developed by us, including but not limited to: (a) services and products offered and sold at HealthSource Chiropractic franchises; (b) knowledge of sales and profit performance of any one or more HealthSource Chiropractic franchises; (c) knowledge of sources of products sold at HealthSource Chiropractic franchises, (d) advertising and promotional programs and image and decor; (e) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of HealthSource Chiropractic franchises; (f) copyrighted materials, including, without limitation, office forms and procedures, marketing materials, telephone scripts and the content of the Operations Manual; and (g) the methods of training employees. We will disclose much of the above-described information to you in advising you about site selection, providing our Initial Training, providing access to the Operations Manual, and providing guidance and assistance to you under this Agreement. In addition, in the course of the operation of your Franchise, you or your employees may develop ideas, concepts, methods, or techniques of improvement relating to the Franchise that you agree to disclose to us, and that we may then authorize you to use in the operation of your Franchise, and may use or authorize others to use in other HealthSource Chiropractic franchises owned or franchised by us or our affiliates. (All of such information disclosed to or developed by you will be referred to in this Agreement as our "Confidential Information".)

9.2 Non-Disclosure Agreement.

  • a. You agree that your relationship with us does not vest in you any interest in the Confidential Information, other than the right to use it solely in the development and operation of the Franchise during the Term of this Agreement, and that the use or duplication of the Confidential Information in any other business or for any other purpose would constitute an unfair method of competition or otherwise result in irreparable damage to us.
  • b. You acknowledge and agree that the Confidential Information belongs to us, may contain trade secrets belonging to us, and is disclosed to you or authorized for your use solely on the condition that you agree, and you therefore do agree, that you (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 development and operation of the Franchise during the Term of this Agreement; (2) will maintain the absolute confidentiality of the Confidential Information during and after the Term of this Agreement 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;

Source: Item 23 — Receipts (FDD pages 77–282)

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic possesses unique confidential and proprietary information and trade secrets. This includes knowledge and experience in the development, operation, and franchising of Healthsource Chiropractic franchises.

Healthsource Chiropractic discloses this information to prospective franchisees through several avenues. Initially, after a deposit is submitted, Healthsource Chiropractic may disclose confidential information verbally or visually via training programs, or in written form via HealthSource's Operations Manual. This disclosure is part of the process of application, reserving the protected territory, and providing initial training.

Furthermore, Healthsource Chiropractic will disclose much of the above-described information to you in advising you about site selection, providing our Initial Training, providing access to the Operations Manual, and providing guidance and assistance to you under this Agreement. This information is considered confidential, and franchisees are required to maintain its confidentiality, using it only for the operation of their Healthsource Chiropractic franchise. Franchisees also agree not to make unauthorized copies and to return all materials containing confidential information upon request.

In the event that a franchisee or their employees develop any improvements or techniques related to the franchise, they are expected to disclose these to Healthsource Chiropractic. This allows Healthsource Chiropractic to potentially use or authorize others to use these improvements across other Healthsource Chiropractic franchises, ensuring a continuous cycle of shared knowledge and improvement within the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.