factual

What specific services are Healthsource Chiropractic principal owners prohibited from soliciting after the franchise agreement expires, terminates, or transfers?

Healthsource_Chiropractic Franchise · 2025 FDD

Answer 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.

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.