What is the 'Business' referring to in the Focalpoint Coaching Nondisclosure and Non-Competition Agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchised business Company authorizes Franchisee to operate under the Franchise Agreement is known as the "Business," which Business is one among all businesses that Company owns, operates, or franchises under the "FocalPoint" name. I agree that, unless otherwise specified, all capitalized terms in this Agreement have those meanings ascribed to them in the Franchise Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the "Business" in the Nondisclosure and Non-Competition Agreement refers to the franchised business that Focalpoint Coaching authorizes the franchisee to operate under the Franchise Agreement. This business operates under the "FocalPoint" name and is one of many businesses that Focalpoint Coaching owns, operates, or franchises. The agreement specifies that capitalized terms within it hold the meanings defined in the Franchise Agreement.
This definition is crucial because the Nondisclosure and Non-Competition Agreement places restrictions on individuals associated with the Focalpoint Coaching franchise, preventing them from engaging in activities that could harm the company's interests. This includes direct and indirect competition, such as working for or owning a competitive business. The agreement aims to protect Focalpoint Coaching's confidential information, trademarks, and the goodwill associated with its franchised businesses.
The agreement also defines a "Competitive Business" as any business deriving more than 20% of its revenue from selling business training or consulting services, or granting franchises/licenses for similar businesses. However, it allows for passive ownership of less than 2% of a publicly traded Competitive Business, provided the individual does not control the company. These restrictions apply during the term of employment, service, association, or ownership participation and continue even after termination.
For a prospective Focalpoint Coaching franchisee, understanding this definition is essential. It clarifies the scope of activities that are restricted under the Nondisclosure and Non-Competition Agreement, ensuring they are aware of the limitations on their business activities and those of their personnel. It also highlights the importance of protecting Focalpoint Coaching's interests and maintaining the integrity of the franchise system.