After the Focalpoint Coaching franchise is terminated or expires, for how long is the franchisee prohibited from soliciting clients of FocalPoint Coaching, its affiliates, or other franchise owners or area representatives?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| r. Non-competition | No direct or indirect ownership interest in, or | |
| covenants after the | ||
| franchise is | ||
| terminated or | ||
| expires | performing services for, competing business for 2 years at the premises where the Office is located; within the Territory; within 25 miles of the radius of the Territory; or within the territory of any other FocalPoint Franchised Business in operation or in the process of opening as of date Franchise Agreement expires or is terminated; no solicitation for 2 years of any of our or our affiliates’ clients or any clients of any other franchise owner or area representative (same restrictions apply after transfer) (subject to state law). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting clients after the franchise is terminated or expires. Specifically, the franchisee cannot solicit any of Focalpoint Coaching's, its affiliates', or any other franchise owner's or area representative's clients for a period of 2 years. This restriction also applies after a transfer of the franchise.
This non-solicitation covenant means that for two years post-termination or expiration, a former Focalpoint Coaching franchisee is barred from actively seeking business from any existing clients within the Focalpoint Coaching network. This includes clients of the franchisor itself, its affiliated entities, and clients of other franchisees or area representatives within the Focalpoint Coaching system. The restrictions are subject to state law, so the enforceability and specific interpretation may vary depending on the franchisee's location.
This provision is designed to protect Focalpoint Coaching's established client base and the goodwill associated with the brand. It prevents a departing franchisee from leveraging their knowledge of and relationships with Focalpoint Coaching clients to immediately start a competing business. The non-solicitation clause aims to maintain the integrity of the franchise system and protect the investment of other franchisees.
A prospective Focalpoint Coaching franchisee should carefully consider the implications of this non-solicitation clause. It is essential to understand the geographic scope of the restriction, as it applies not only to the former franchisee's territory but also to the territory of any other Focalpoint Coaching franchised business in operation or in the process of opening as of the date the Franchise Agreement expires or is terminated. Franchisees should seek legal counsel to fully understand the enforceability and limitations of this clause in their specific jurisdiction.