How does Focalpoint Coaching define a 'Competitive Business'?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Competitive Business" means (i) any business which derives more than twenty percent (20%) of its revenue from selling business training or business consulting services and/or selling products similar to the Proprietary Products or (ii) any business granting franchises or licenses to others to operate the type of business specified in subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Franchisor).
Franchisee agrees to obtain similar covenants from the personnel Franchisor specifies, including officers, directors, managers, Associates and other employees attending Franchisor's training program or having access to Confidential Information. Franchisor has the right to regulate the form of agreement that Franchisee uses and to be a third party beneficiary of that agreement with independent enforcement rights.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a 'Competitive Business' is defined in the context of restrictions placed on franchisees and related parties during the term of the Franchise Agreement. Focalpoint Coaching considers a business to be competitive if it meets either of two criteria.
First, a business is competitive if more than 20% of its revenue comes from selling business training or business consulting services, or from selling products similar to Focalpoint Coaching's proprietary products. This means that if a franchisee or their spouse has a significant financial interest or role in a business that substantially overlaps with Focalpoint Coaching's core offerings, it would be considered a conflict of interest and a violation of the agreement.
Second, a business is considered competitive if it grants franchises or licenses to others to operate a business similar to Focalpoint Coaching, excluding other Focalpoint Coaching franchises. However, there is an exception: owning less than 2% of a publicly traded Competitive Business does not violate the agreement, provided that neither the franchisee nor their spouse controls the company. This exception allows for minor investment in publicly traded companies that might technically be considered competitive.
These restrictions are designed to protect Focalpoint Coaching's market position, trade secrets, and franchise system. Prospective franchisees should carefully consider these limitations, as they could impact other business ventures or investment opportunities during the term of their agreement with Focalpoint Coaching.