For Focalpoint Coaching, what is the duration of the covenant not to compete after the termination or expiration of the Franchise Agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
correspondence between the parties and any other documents which Franchisee reasonably needs for compliance with any provision of law. Franchisee agrees that the foregoing items, materials, client lists, files, software and other similar items are at all times considered to be Franchisor's property for all purposes.
D. COVENANT NOT TO COMPETE.
Upon the termination or expiration of this Agreement, Franchisee and Franchisee's owners agree that, for two (2) years beginning on the effective date of termination or expiration of this Agreement (or upon a transfer as provided in Subsection 12.C(12) above), whichever is later, neither Franchisee nor any of Franchisee's owners will have any direct or indirect interest (e.g., through a spouse) as an owner (whether of record, beneficially, or otherwise), investor, partner, director, officer, employee, consultant, representative, or agent in any Competitive Business (as defined in Section 7 above) located or operating:
- (i) at the premises where the Office is located;
- (ii) within the Territory;
- (iii) within a twenty-five (25) mile radius of the Territory;
- (iv) within the Territory of any other FocalPoint Franchised Business in operation or in the process of opening on the later of the effective date of the termination or expiration of this Agreement or the date on which all persons restricted by this Subsection 15.D begin to comply with this Subsection 15.D.
E. COVENANT NOT TO SOLICIT.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the covenant not to compete lasts for two years after the termination or expiration of the Franchise Agreement. This restriction applies to the franchisee and their owners, preventing them from having a direct or indirect interest in a Competitive Business.
The non-compete applies beginning on the effective date of termination or expiration of the agreement, or upon a transfer as provided in Subsection 12.C(12), whichever is later. The restriction extends to businesses located at the former office premises, within the territory, within a 25-mile radius of the territory, or within the territory of any other FocalPoint franchise in operation or in the process of opening.
This means that after leaving the Focalpoint Coaching system, a former franchisee is restricted from engaging in a similar business within a defined geographic area for a period of two years. This is a fairly standard non-compete duration in the franchise industry. The franchisee is also prohibited from soliciting clients of Focalpoint Coaching or its affiliates for two years after termination or expiration of the agreement.