What is the process by which Healthsource Chiropractic discloses knowledge of information for Healthsource Chiropractic franchises?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
do not sign a Franchise Agreement or I do not pay the entire remaining portion of the Initial Franchise Fee on or before the Deadline Date, I will not have the right to operate a HealthSource Chiropractic franchise in the Protected Territory or use any HealthSource marks, logos, information or materials, and HealthSource may grant all or any portion the Protected Territory to another person or entity.
- d. HealthSource's acceptance of the Deposit does not constitute the grant of any rights to me to operate a HealthSource chiropractic clinic or use HealthSource's marks, logos, information or materials in practice or otherwise, and that such rights may only be granted through a Franchise Agreement that has been duly executed by both me and HealthSource.
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- Non-Disclosure of Confidential Information. 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.
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- Governing Law, Venue. This Acknowledgement will be governed by the laws of the State of Ohio, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic discloses confidential and proprietary information to prospective franchisees after they submit a deposit. This information includes details about services and products, sales and profit performance of existing franchises, sources of products, advertising and promotional programs, and methods for training employees. This confidential information can be shared verbally, visually through training programs, or in written form, such as in the Healthsource Chiropractic Operations Manual.
Before receiving this confidential information, prospective franchisees must acknowledge that Healthsource Chiropractic is the sole owner of the information and agree to maintain its confidentiality. They must also agree not to use the information for any purpose other than operating a Healthsource Chiropractic franchise. This non-disclosure agreement remains in effect even if the prospective franchisee does not ultimately sign a Franchise Agreement with Healthsource Chiropractic.
Healthsource Chiropractic also discloses confidential information to franchisees during the term of the Franchise Agreement. This includes advising on site selection, providing initial training, granting access to the Operations Manual, and offering ongoing guidance and assistance. Franchisees may also develop ideas or improvements related to the franchise, which they must disclose to Healthsource Chiropractic. This allows Healthsource Chiropractic to potentially use these improvements across other franchises within the system. Upon termination of the franchise agreement, franchisees must continue to protect this confidential information.