What is the process by which Healthsource Chiropractic discloses knowledge of experience in franchising?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
After I submit my Deposit, I further understand that HealthSource may disclose to me its confidential and proprietary information, including: (a) services and products offered and sold at HealthSource Chiropracticfranchises; (b) knowledge of sales and profit performance of any one or more HealthSource Chiropracticfranchises; (c) knowledge of sources of products sold at HealthSource Chiropracticfranchises, advertising and promotional programs, and image and decor; (d) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of HealthSource Chiropracticfranchises; and (e) the selection and methods of training employees, all of which may be disclosed verbally or visually via training programs, or in written form via HealthSource's Operations Manual, or otherwise (referred to as "Confidential Information" whether or not marked as such).
I acknowledge and agree that HealthSource is the sole owner of the Confidential Information and that I and my employees, representatives and agents: (x) will not use the Confidential Information for any purpose other than the operation of a HealthSource franchise; (y) will maintain the absolute confidentiality of the Confidential Information; and (z) will not
make unauthorized copies of any portion of the Confidential Information, and will return to HealthSource all tangible materials and media containing Confidential Information, including all copies thereof, upon HealthSource's request. I agree that the foregoing restrictions will apply even if I do not enter into a Franchise Agreement with HealthSource or if this Acknowledgement is revoked or expires or terminates, but nothing contained herein shall prevent me from using information or knowledge that is publicly available.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the company possesses confidential and proprietary information related to its franchising operations. This includes knowledge and experience in the development, operation, and franchising of Healthsource Chiropractic franchises.
Healthsource Chiropractic discloses this information to prospective franchisees during various stages, including advising on site selection, providing initial training, granting access to the Operations Manual, and offering ongoing guidance and assistance under the Franchise Agreement. The disclosure can be verbal, visual (through training programs), or in written form (via the Operations Manual).
Before receiving this confidential information, prospective franchisees must submit a deposit and sign a Franchise Deposit Acknowledgement. This acknowledgement includes a non-disclosure agreement, ensuring that franchisees understand the confidential nature of the information and agree not to use it for any purpose other than operating a Healthsource Chiropractic franchise. This obligation extends even if the franchisee does not ultimately enter into a Franchise Agreement.
Healthsource Chiropractic retains ownership of all Confidential Information, and franchisees are obligated to maintain its confidentiality. They cannot make unauthorized copies or disclose it to third parties. This protection of confidential information is a standard practice in franchising, ensuring that franchisees benefit from the franchisor's expertise while safeguarding the franchisor's competitive advantage.