What specific services are Healthsource Chiropractic principal owners prohibited from soliciting after the franchise agreement expires, terminates, or transfers?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| franchisees, or any of their respective | ||
| products, | ||
| services, | ||
| businesses | ||
| or | ||
| business practices, or (b) the actions, | ||
| operations | ||
| or | ||
| character | ||
| of | ||
| the | ||
| Franchisor | ||
| or | ||
| the | ||
| Franchise's | ||
| respective owners, officers, directors, | ||
| employees, consultants or agents. | ||
| The | ||
| Franchise | ||
| Agreement | ||
| also | ||
| prohibits | ||
| each | ||
| Principal | ||
| Owner, | ||
| during the term of the Franchise | ||
| Agreement | ||
| and for a period of two (2) | ||
| years | ||
| following | ||
| the | ||
| expiration, | ||
| termination | ||
| or | ||
| Transfer | ||
| of | ||
| the | ||
| Franchise | ||
| Agreement, | ||
| from | ||
| (a) | ||
| soliciting for chiropractic, physical | ||
| therapy, | ||
| rehabilitation, | ||
| function | ||
| restoration, weight loss or related | ||
| services or products with any person | ||
| who was a patient of the Franchise | ||
| within the two year period prior to the | ||
| expiration, termination or Transfer of | ||
| the Franchise Agreement; or (b) | ||
| interfering | ||
| with | ||
| the | ||
| Franchisor's | ||
| relationship | ||
| with | ||
| any | ||
| of | ||
| the | ||
| Franchisor's | ||
| franchisees, | ||
| Regional | ||
| Developer | ||
| franchisees, | ||
| vendors, | ||
| suppliers or referral sources. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 53–64)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, principal owners face certain restrictions on soliciting services following the end of their franchise agreement. Specifically, for two years after the expiration, termination, or transfer of the franchise agreement, principal owners are prohibited from soliciting for chiropractic, physical therapy, rehabilitation, function restoration, weight loss, or related services or products. This restriction applies to individuals who were patients of the Healthsource Chiropractic franchise within the two years before the agreement ended.
This non-solicitation clause aims to protect Healthsource Chiropractic's patient base and prevent former franchisees from directly competing for the same customers immediately after leaving the system. It ensures that the goodwill and patient relationships built during the franchise term remain with the franchise.
In addition to the non-solicitation of patients, the agreement also prevents principal owners from interfering with Healthsource Chiropractic's relationships with its franchisees, regional developer franchisees, vendors, suppliers, or referral sources during the same two-year period. This broader restriction is designed to safeguard the franchisor's network and business relationships beyond just the patient base.
Prospective franchisees should carefully consider these post-term restrictions, as they could impact their ability to continue offering similar services in the same geographic area after the franchise agreement concludes. Understanding the scope and duration of these covenants is crucial for planning future business activities.