Is the sub-license to use the Healthsource Chiropractic marks assignable?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 With the prior consent of HealthSource, Management Company hereby grants Licensed Provider a revocable, non-assignable and non-exclusive sub-license to use certain identifying trade and service marks, names, service marks and other commercial symbols, including the marks "HS" and "HealthSource Chiropractic" and certain associated designs, artwork, and logos (as may be changed by HealthSource from time to time, the "Marks"), as well as certain System materials, forms, intellectual property and décor items, during the Agreement Term. Licensed Provider hereby agrees to use the Marks in accordance with all applicable laws, rules and regulations, in accordance with the rules and requirements of HealthSource, and under
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the sub-license granted to a Licensed Provider for using Healthsource Chiropractic's trademarks is not assignable. Specifically, the Management Company grants the Licensed Provider a "revocable, non-assignable and non-exclusive sub-license" to use the specified marks. This means a franchisee cannot transfer this sub-license to another party.
This restriction is typical in franchising, as franchisors like Healthsource Chiropractic want to maintain control over who uses their brand's intellectual property. This control helps ensure brand consistency and protects the reputation of the franchise system.
Prospective Healthsource Chiropractic franchisees should understand that the inability to assign the sub-license means they cannot transfer the right to use the Healthsource Chiropractic marks to anyone else, even if they sell their franchise. This condition is clearly outlined in the franchise agreement, and franchisees must adhere to it.