factual

What is the process by which Healthsource Chiropractic discloses knowledge of systems for 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; and (4) will adopt and implement all reasonable procedures, including any that we may prescribe from time to time, to prevent unauthorized use or disclosure of the Confidential Information, including without limitation restrictions on disclosure to or by your employees, and the use of non-disclosure, nonsolicitation, non-disparagement and non-competition agreements we may prescribe or approve for your shareholders, partners, members, officers, directors, employees, independent contractors, or agents who may have access to the Confidential Information.

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

What This Means (2025 FDD)

According to the 2025 Healthsource Chiropractic FDD, Healthsource Chiropractic possesses confidential and proprietary information and trade secrets. This includes information, methods, techniques, products, services, and knowledge developed by them. This information includes services and products offered at HealthSource Chiropractic franchises, knowledge of sales and profit performance, sources of products, advertising and promotional programs, methods, techniques, formats, specifications, procedures, information, systems, and knowledge of the franchise. It also includes copyrighted materials and methods of training employees.

Healthsource Chiropractic will disclose much of this information to franchisees in advising them about site selection, during initial training, by providing access to the Operations Manual, and by providing guidance and assistance under the Franchise Agreement. Franchisees may also develop ideas or improvements related to the franchise, which they must disclose to Healthsource Chiropractic. Healthsource Chiropractic may then authorize the franchisee to use these improvements or authorize others to use them in other Healthsource Chiropractic franchises.

Before a potential franchisee signs a franchise agreement with Healthsource Chiropractic, they may receive confidential and proprietary information after submitting a deposit. This information can be disclosed verbally, visually through training programs, or in written form via Healthsource Chiropractic's Operations Manual. The franchisee must acknowledge that Healthsource Chiropractic is the sole owner of this confidential information and agree to maintain its confidentiality, using it only for the operation of their Healthsource Chiropractic franchise. They must also agree not to make unauthorized copies and to return all materials containing confidential information upon request.

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.