For Focalpoint Coaching, what is the duration of the covenant not to solicit clients after the termination or expiration of the Franchise Agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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, officers, directors or employees will, directly or indirectly (e.g., through a spouse), solicit, or attempt to solicit, any client of Franchisor or of any of Franchisor's affiliates, franchise owners or area representatives to discontinue the client relationship with Franchisor or with any of Franchisor's affiliates, franchise owners or area representatives. In addition, the use of Franchisor's client lists, employee files or other such Confidential Information for the purpose of soliciting is prohibited.
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 solicit clients lasts for two years. Specifically, upon termination or expiration of the Franchise Agreement, the franchisee and their owners agree not to solicit, or attempt to solicit, any client of Focalpoint Coaching or its affiliates, franchise owners, or area representatives to discontinue their relationship with Focalpoint Coaching. This restriction begins 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.
This means that after a Focalpoint Coaching franchise agreement ends, the former franchisee cannot actively try to win over clients of the franchisor or other franchisees. This is a standard provision in franchise agreements to protect the brand's customer base and prevent unfair competition from former franchisees who may have gained knowledge of clients and business practices during their time with the franchise.
The agreement also prohibits the use of Focalpoint Coaching's client lists, employee files, or other confidential information for the purpose of soliciting. This reinforces the protection of the franchisor's proprietary information and prevents a former franchisee from using these resources to unfairly compete. The non-solicitation clause aims to maintain the integrity of the Focalpoint Coaching network and safeguard the relationships between the franchisor, its franchisees, and their clients.