Under what circumstances is confidential information related to Healthsource Chiropractic not subject to confidentiality obligations?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
You must give HealthSource Chiropractic a final accounting for your Franchised Business, and you must maintain all accounts and records for your Franchised Business for a period of not less than seven years after final payment of any amounts you owe to HealthSource Chiropractic, its affiliates, and/or related persons when this Agreement is terminated, but you may not sell, disclose, or otherwise transfer any of the information contained in those accounts and
records (other than patient records needed for their continuing care) to, or for use by, any competitive business.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
Based on the 2025 Healthsource Chiropractic Franchise Disclosure Document, the confidentiality obligations surrounding patient records are specifically addressed in the context of business termination. Franchisees are required to maintain all accounts and records related to their Healthsource Chiropractic franchise for at least seven years after the final payment of any amounts owed to Healthsource Chiropractic, its affiliates, and related persons, following the termination of the agreement.
However, there is a notable exception to this strict confidentiality. Franchisees are permitted to transfer patient records if those records are needed for the continuing care of those patients. This exception acknowledges the importance of ensuring that patients continue to receive appropriate medical care, even after a franchise location closes or changes ownership.
This provision balances the need to protect Healthsource Chiropractic's confidential business information with the ethical obligation to provide for the ongoing healthcare needs of patients. It is a practical consideration that allows for a smooth transition of patient care without unduly burdening former franchisees or compromising patient well-being. Prospective franchisees should understand this obligation to maintain records and the specific allowance for transferring patient records for continuing care.