What relationships of Healthsource Chiropractic are franchisees prohibited from interfering with after the franchise agreement expires, terminates, or transfers?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, Principal Owners are restricted from interfering with certain relationships of the Franchisor for a period of two years following the expiration, termination, or transfer of the Franchise Agreement. Specifically, the Principal Owner cannot interfere with Healthsource Chiropractic's relationships with its franchisees, Regional Developer franchisees, vendors, suppliers, or referral sources.

This post-term restriction means that a former Healthsource Chiropractic franchisee (or their Principal Owner) is prohibited from actively disrupting or damaging the relationships the franchisor has established with these key stakeholders. This could include, for example, attempting to poach existing franchisees to join a competing business, disparaging Healthsource Chiropractic to its vendors to damage those relationships, or interfering with referral agreements the franchisor has in place.

This type of clause is common in franchise agreements to protect the franchisor's business interests and goodwill. It prevents former franchisees from leveraging their knowledge of the Healthsource Chiropractic system and relationships to unfairly compete against the franchisor after they leave the system. Franchisees should understand the scope and duration of these restrictions before signing the agreement.

It is important to note that this restriction applies to the Principal Owner of the franchise, not necessarily to all employees or investors. The FDD specifies that the Principal Owner is subject to this non-interference clause. A prospective franchisee should carefully review the definition of "Principal Owner" in the Franchise Agreement to fully understand who is bound by this restriction.