Is a Focalpoint Coaching franchisee allowed to use Confidential Information in any other business?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee is explicitly prohibited from using Confidential Information in any business other than their Focalpoint Coaching franchise. The FDD states that franchisees agree they "will not use Confidential Information in any other business or capacity". This restriction applies both during the term of the Franchise Agreement and indefinitely afterward, as long as the information remains confidential and not generally known in the business training and consulting industry.

This restriction is crucial for protecting Focalpoint Coaching's proprietary assets and maintaining a competitive advantage. The definition of "Confidential Information" is broad, encompassing items such as training materials, operating procedures, marketing techniques, client lists, supplier information, and financial performance data. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including restricting access to personnel within the Franchised Business and using non-disclosure agreements with those who have access.

There are limited exceptions to this rule. Information that the franchisee can demonstrate was already lawfully known to them before the franchise agreement, or that has become publicly known through legitimate means (not due to the franchisee's actions), is not considered Confidential Information. However, the burden of proof lies with the franchisee to demonstrate that these exceptions apply. This ensures that Focalpoint Coaching's confidential and proprietary information remains protected, preventing franchisees from leveraging it for personal gain or in competing ventures.

For a prospective franchisee, this means understanding the strict limitations on using any information learned or accessed during the operation of their Focalpoint Coaching franchise. It is essential to maintain the confidentiality of all proprietary information and to avoid any activity that could be construed as using this information for the benefit of another business. Failure to comply with these restrictions could result in legal action and termination of the franchise agreement.