After termination or expiration of the Healthsource Chiropractic agreement, for how long does the non-competition agreement apply?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Non-Competition. During the Agreement Term, Licensed Provider will not, directly or indirectly, perform services for, or have any direct or indirect interest as an owner, investor, partner, director, officer, employee, manager, consultant, representative, or agent in, any business that offers products or services the same as or similar to those offered or sold at the Clinic. Licensed Provider's duties and obligations under this Section 10.3(a) shall survive for two (2) years following any termination or expiration of this Agreement; provided, however, that following such termination or expiration of this Agreement, this covenant shall only apply with respect to a competitive business that has a place of business located within a five (5) mile radius of the location of the Premises.
- (b) Non-Disparagement. Licensed Provider agrees that during the Agreement Term and thereafter, Licensed Provider will not, directly or indirectly, make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) Management Company, the Clinic Management Business, HealthSource or any of its franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of Management Company's or HealthSource's respective owners, officers, directors, employees, consultants or agents.
- (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 Healthsource Chiropractic's 2025 Franchise Disclosure Document, the non-competition agreement lasts for a specific duration after the termination or expiration of the franchise agreement. During the agreement term, the Licensed Provider is restricted from engaging in or having interests in businesses offering similar products or services as the Healthsource Chiropractic clinic.
Following the termination or expiration of the agreement, the non-competition obligations extend for a period of two years. However, this post-term covenant is limited to competitive businesses operating within a five-mile radius of the original Healthsource Chiropractic clinic location. This means that after leaving the Healthsource Chiropractic system, a former franchisee cannot operate a competing business within that immediate geographic area for the specified time.
In addition to the non-competition clause, the agreement also includes non-disparagement and non-solicitation clauses. The non-disparagement clause restricts the Licensed Provider from making negative statements about Healthsource Chiropractic, its affiliates, or their business practices, both during and after the agreement term. The non-solicitation clause prevents the Licensed Provider from soliciting patients of the clinic or interfering with Healthsource Chiropractic's relationships with franchisees, vendors, suppliers, or referral sources for a period of two years after termination or expiration.