After termination of a Healthsource Chiropractic agreement, is the Licensed Provider allowed to interfere with HealthSource's relationship with its vendors?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.3 Non-Competition Agreement and Other Restrictive Covenants.
- (c) Non-Solicitation. Licensed Provider agrees that during the Agreement Term, and thereafter for a period of two (2) years following any termination or expiration of this Agreement, Licensed Provider will not, directly or indirectly, (a) solicit for chiropractic, physical therapy, rehabilitation, weight loss, or related services or products with any person who was a patient of the Clinic within the two year period prior to such termination or expiration; or (b) interfere with Management Company's or HealthSource's relationship with any of its franchisees, vendors, suppliers or referral sources.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Licensed Provider is restricted from interfering with HealthSource Chiropractic's relationships with its vendors, suppliers, or referral sources both during the agreement term and for a period of two years following the termination or expiration of the agreement. This restriction is part of the non-solicitation agreement outlined in Section 10.3(c).
This provision prevents a former Licensed Provider from leveraging their past association with HealthSource Chiropractic to disrupt the franchisor's established business relationships. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's network and goodwill. By preventing interference with vendors, HealthSource Chiropractic aims to maintain stable supply chains and favorable terms with its suppliers, which ultimately benefits the entire franchise system.
For a prospective HealthSource Chiropractic franchisee, this means that after leaving the system, they cannot actively try to poach vendors or suppliers that HealthSource Chiropractic uses. Doing so could result in legal action. This restriction is in place for two years post-termination and is a critical aspect to consider when evaluating the long-term implications of the franchise agreement.