Who is required to sign a Restrictive Covenant Agreement for a Healthsource Chiropractic franchise?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, both the Principal Owners and the General Manager are required to comply with the restrictive covenants. Specifically, the General Manager must comply with the Restrictive Covenants Agreement if they have signed one.

This means that if you are a franchisee, your Principal Owners (those with significant ownership or control) are bound by the restrictive covenants outlined in the franchise agreement. Additionally, if you employ a General Manager, that individual must also adhere to a Restrictive Covenants Agreement, if one exists.

The purpose of these agreements is to protect Healthsource Chiropractic's interests by preventing individuals with knowledge of the business from competing or sharing confidential information, especially after the franchise agreement ends. Prospective franchisees should carefully review the terms of these restrictive covenants to understand their obligations and limitations, particularly concerning competition and solicitation, during and after the franchise term.

It is important for franchisees to ensure their General Manager signs the Restrictive Covenants Agreement, if applicable, and that all parties understand the implications of these covenants. This helps maintain compliance and avoid potential legal issues with Healthsource Chiropractic.