Under what section of the Healthsource Chiropractic agreement are marks discussed?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
7. MARKS; COPYRIGHTED WORKS.
7.1 Ownership and Goodwill of Marks
a. You acknowledge that your right to use the Marks is derived solely from this Agreement, and is limited to your operation of the Franchise pursuant to and in compliance with this Agreement and all applicable standards, specifications, and operating procedures we prescribe from time to time during the Term of this Agreement, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Advertising Fees, and all other sums due to us.
b. You understand and acknowledge that our right to regulate the use of the Marks includes, without limitation, any use of the Marks in any form of electronic media, such as Websites or web pages, or as a domain name or electronic media identifier.
c.
If you make any unauthorized use of the Marks either during or after the Term of this Agreement, it will constitute a breach of this Agreement and an infringement of our rights in and to the Marks.
- d.
You acknowledge and agree that all your usage of the Marks and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in compliance with this Agreement).
- e.
All provisions of this Agreement applicable to the Marks will apply to any additional trademarks, service marks, commercial symbols, designs, artwork, or logos we may authorize and/or license you to use during the Term of this Agreement.
- f.
HealthSource Chiropractic has invested substantial time, energy, and money in the promotion and protection of its Marks as they exist on the date of this Agreement.
However, rights in intangible property such as the Marks are often difficult to establish and defend.
In addition, other circumstances, such as changes in the cultural and economic environment within which the System operates, changes in marketing or other strategies, or third-party challenges to HealthSource Chiropractic's rights in the Marks, may make changes in the Marks desirable or necessary.
HealthSource Chiropractic therefore reserves the right to change its Marks and the specifications for each when we believe that such changes will benefit the System.
You will promptly conform at your own expense, to any such changes.
HealthSource Chiropractic need not reimburse you for any loss of revenue due to any modified or discontinued Mark or for your expenses in changing to, or promoting, a modified or substitute trademark or service mark.
- 7.2 Limitations on Franchise Owner's Use of Marks.
You agree to use the Marks as the sole trade identification of the Franchise, except that you will display at the Franchise location a notice, in a form acceptable to us, stating that you are the independent owner of the Franchise pursuant to a Franchise Agreement with us.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the franchise agreement discusses marks under Section 7, titled "MARKS; COPYRIGHTED WORKS". This section outlines the franchisee's rights and responsibilities regarding the use of Healthsource Chiropractic's trademarks, service marks, and logos.
Specifically, Section 7.1 addresses the ownership and goodwill associated with the marks, emphasizing that the franchisee's right to use them is solely derived from the franchise agreement. It also states that any unauthorized use of the marks constitutes a breach of the agreement and an infringement of Healthsource Chiropractic's rights. Section 7.2 further details the limitations on the franchisee's use of the marks, requiring them to use the marks as the sole trade identification of the franchise, with a notice indicating independent ownership under a franchise agreement.
These provisions are typical in franchise agreements, as franchisors need to protect their brand identity and ensure consistent representation across all franchise locations. Healthsource Chiropractic retains the right to modify its marks and requires franchisees to conform to these changes at their own expense, highlighting the importance of adhering to the franchisor's brand standards. Prospective franchisees should carefully review Article 7 to understand their obligations and limitations regarding the use of Healthsource Chiropractic's intellectual property.