What is the process by which Healthsource Chiropractic discloses methods of training employees?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer 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. You acknowledge and agree that we are under no duty or obligation to you to enforce any such Agreements for your or our benefit. Your duties and obligations with respect to Confidential Information shall survive the Transfer, termination or expiration of this Agreement.
9.3 Non-Competition Agreement and Other Restrictive Covenants.
a. Non-Competition. You agree that we would be unable to protect the Confidential Information against unauthorized use or disclosure, and would be unable to encourage a free exchange of ideas and information among HealthSource Chiropractic franchises, if franchise owners of HealthSource Chiropractic franchises were permitted to hold interests in any competitive businesses (as described below). Therefore, during the Term of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the
immediate family of any Principal Owner, shall directly or indirectly perform services for, or have any direct or indirect interest as an owner, investor, partner, director, officer, employee, manager, consultant, representative, or agent in, any business that offers products or services the same as or similar to those offered or sold at HealthSource Chiropractic Clinic franchises; provided, however, that the ownership of one percent (1%) or less of a publicly traded company will not be deemed to be prohibited by this Paragraph.
- b. Non-Disparagement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the methods of training employees are considered confidential and proprietary information. Healthsource Chiropractic will disclose this information to franchisees through various means, including advising on site selection, providing initial training, granting access to the Operations Manual, and offering ongoing guidance and assistance.
Prior to signing a franchise agreement, potential franchisees may receive confidential information regarding employee training methods. This information can be shared verbally, visually through training programs, or in written form within Healthsource Chiropractic's Operations Manual. Franchisees and their employees are obligated to maintain the confidentiality of this information and can only use it for operating their Healthsource Chiropractic franchise. They must also prevent unauthorized copying and return all materials containing confidential information upon request.
Healthsource Chiropractic also requires franchisees to establish training programs for their employees and independent contractors as prescribed in writing. Franchisees are responsible for the proper training of their staff in the operation of the franchise. Employees must maintain a neat and clean appearance, adhere to dress standards outlined in the Operations Manual, and sign an agreement to protect Healthsource Chiropractic's confidential information.
Initial training is provided to the franchisee and designated staff at least 30 days before the franchise opens. This training includes virtual classroom instruction, self-directed learning, and franchise operation training. Healthsource Chiropractic may modify the location of the training in the future. If Healthsource Chiropractic determines that a general manager or employee cannot complete the initial training satisfactorily, the franchisee must hire a substitute who can complete the training.