Does the Focalpoint Coaching franchise agreement define what constitutes trade secrets?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) site selection criteria;
- (2) training and operations materials and manuals;
- (3) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating FocalPoint Franchised Businesses;
- (4) marketing, promotional and advertising research and programs for FocalPoint Franchised Businesses;
- (5) knowledge of specifications for and suppliers of Operating Assets, Proprietary Products, and other products and supplies, including supplier pricing and related terms;
- (6) any computer software or similar technology which is proprietary to Franchisor or the Franchise System, including, without limitation, digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or similar technology;
- (7) knowledge of the operating results and financial performance of FocalPoint Franchised Businesses other than the Franchised Business;
- (8) graphic designs and related intellectual property;
- (9) client solicitation, communication and retention programs, along with data and information used or generated in connection with those programs;
- (10) all data and other information generated by, or used in, the operation of the Franchised Business, including client names, addresses, phone numbers and other information supplied by any client, and any other information contained at any time and from time to time in the Computer System or that visitors to the Franchised Business (including Franchisee and Franchisee's personnel) provide to the Website for the network of FocalPoint Franchised Businesses;
- (11) future business plans relating to FocalPoint Franchised Businesses and the FocalPoint franchise opportunity, including expansion and development plans; and
- (12) any other information that Franchisor reasonably designates as confidential or proprietary.
Franchisee acknowledges and agrees that Franchisee will not acquire any interest in Confidential Information, other than the right to use it as Franchisor specifies in operating the Franchised Business during this Agreement's term, and that Confidential Information is proprietary, includes Franchisor's trade secrets, and is disclosed to Franchisee only on the condition that Franchisee agrees, and Franchisee in fact does agree, that Franchisee:
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchise agreement does address what the company considers to be trade secrets. The agreement refers to this information as "Confidential Information," which includes Focalpoint Coaching's trade secrets. This information is disclosed to the franchisee with the understanding that the franchisee only has the right to use it as specified by Focalpoint Coaching during the term of the agreement.
The agreement lists twelve specific categories of information that Focalpoint Coaching considers confidential and proprietary. These include site selection criteria; training and operations materials; methods, formats, specifications, standards, systems, procedures, sales and marketing techniques; marketing and advertising research and programs; knowledge of suppliers and pricing; proprietary computer software; operating results and financial performance of other Focalpoint Coaching franchises; graphic designs; client programs and data; data generated by the franchised business; future business plans; and any other information that Focalpoint Coaching designates as confidential or proprietary.
For a prospective Focalpoint Coaching franchisee, this means that they will have access to a wide range of confidential information necessary to operate the franchise. However, it also means that they are obligated to protect this information and only use it as authorized by Focalpoint Coaching. This obligation extends beyond the term of the franchise agreement, as franchisees are typically restricted from using or disclosing trade secrets even after they leave the Focalpoint Coaching system. Franchisees do not acquire any ownership interest in the confidential information, only the right to use it during the agreement term.