Under what section of the Healthsource Chiropractic agreement is discontinuance of use of marks discussed?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
wledge and agree that, should we choose to withhold performance rather than terminate this Agreement, HealthSource Chiropractic's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.
16. RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.
16.1 Payment of Amounts Owed to HealthSource Chiropractic. You agree to pay us within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts due to us are determined, all amounts owed to us or our affiliates which are then unpaid including, without limitation, any unpaid Initial Franchise Fee, any unpaid
Continuing Franchise Fees, and any termination fee, damages, costs or expenses owed by you pursuant to Section 15.3, together with any audit costs and expenses owed by you pursuant to Section 13.2.
- 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.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the obligations regarding the use of Healthsource Chiropractic's marks upon termination or expiration of the franchise agreement are detailed in Section 16.2, titled "Marks".
This section explicitly states that any use of the marks or copyrightable works after the franchise's termination or expiration constitutes an unlawful use of Healthsource Chiropractic's intellectual property rights. Franchisees are prohibited from identifying any business they are associated with as a current or former Healthsource Chiropractic franchise, using any mark or imitation thereof, or using any commercial symbol that suggests an association with Healthsource Chiropractic.
Furthermore, franchisees must return or destroy all customer lists, forms, and materials containing any mark or copyrightable works, remove all marks from uniforms, and take action to cancel any fictitious or assumed name registrations related to the use of any mark. Healthsource Chiropractic is also irrevocably appointed as the franchisee's attorney-in-fact to take these actions if the franchisee fails to do so within 10 days of termination.