After termination or expiration of a Healthsource Chiropractic franchise, what happens to the non-disclosure covenants?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.
You further agree that all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the non-disclosure covenants outlined in Section 9 of the franchise agreement remain in full effect even after the termination or expiration of the franchise agreement. This means that the franchisee's obligation to protect Healthsource Chiropractic's confidential information continues indefinitely, even after the franchise relationship ends.
Upon termination or expiration, the franchisee must immediately stop using any of Healthsource Chiropractic's confidential information and is prohibited from using it in any business or for any other purpose. The franchisee must also return all copies of the Operations Manual and any other written confidential materials that Healthsource Chiropractic provided.
This obligation to protect confidential information is a standard practice in franchising, as it protects the franchisor's business methods, trade secrets, and other proprietary information. For a prospective Healthsource Chiropractic franchisee, this means understanding that the duty to maintain confidentiality extends beyond the term of the franchise agreement, which could impact future business ventures or employment opportunities.