After the termination or expiration of a Healthsource Chiropractic franchise, what constitutes unlawful use of Healthsource Chiropractic's intellectual property rights?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Clinic Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service marks. You agree that after the termination or expiration of the Franchise you will:
- a. not directly or indirectly at any time identify any business with which you are associated as a current or former HealthSource Chiropractic franchise or franchisee;
- b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Worksin any manner or for any purpose, or use for any purpose any trademark or other commercial symbol that suggests or indicates an association with us;
- c. return to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or any Copyrightable Works or otherwise relating to a HealthSource Chiropractic franchise;
- d. remove all Marks affixed to uniforms or, at our direction, cease to use those uniforms; and
- e. take any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark.
You irrevocably appoint HealthSource Chiropractic your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, using the brand's marks and copyrightable works after the franchise terminates or expires is an unlawful use of their intellectual property rights. This includes trademarks and service marks.
Specifically, a former franchisee cannot identify any business they are associated with as a current or former Healthsource Chiropractic franchise. They are prohibited from using any mark, imitation of a mark, or copyrightable works in any manner, or using any commercial symbol that suggests an association with Healthsource Chiropractic.
Upon termination or expiration, franchisees must return or destroy (as specified by Healthsource Chiropractic) all customer lists, forms, and materials containing any mark or copyrightable works. They must also remove all marks from uniforms or cease using the uniforms altogether, as directed by Healthsource Chiropractic. Additionally, franchisees must take action to cancel any assumed name registrations related to the use of any mark. If the franchisee fails to do so within 10 days after termination, Healthsource Chiropractic is irrevocably appointed as the attorney-in-fact to take these actions.