factual

Can a Focalpoint Coaching franchisee profit from the Confidential Information?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (c) will not sell, trade or otherwise profit in any way from the Confidential Information (including by selling or assigning any client names, addresses, phone numbers, e-mail contact information, or related data), unless Franchisor otherwise authorizes or approves in Franchisor's sole judgment;

Source: Item 22 — Contracts (FDD pages 56–57)

What This Means (2025 FDD)

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee is explicitly restricted from profiting from the Confidential Information associated with the Focalpoint Coaching franchise. The agreement specifies that franchisees cannot sell, trade, or otherwise gain financially from the Confidential Information, including client data, unless explicitly authorized by Focalpoint Coaching. This restriction applies both during the term of the Franchise Agreement and afterward, as long as the information remains non-public within the business training and consulting industry.

The definition of Confidential Information is broad, encompassing site selection criteria, training materials, sales and marketing techniques, client lists, supplier information, operating results, computer systems, and any other information designated as proprietary. This extensive definition aims to protect Focalpoint Coaching's competitive advantage and proprietary business methods. The franchisee acknowledges that they only have the right to use the Confidential Information as specified by Focalpoint Coaching for operating the Franchised Business during the agreement's term.

This restriction is further reinforced by the requirement that franchisees implement procedures to prevent unauthorized use or disclosure of Confidential Information, including using non-disclosure and non-competition agreements with personnel who have access to it. Focalpoint Coaching retains the right to regulate the form of these agreements and act as a third-party beneficiary with independent enforcement rights. The FDD also clarifies that information already publicly known in the industry or lawfully obtained by the franchisee before disclosure by Focalpoint Coaching is excluded from the definition of Confidential Information, placing the burden of proof on the franchisee to demonstrate such prior knowledge or public availability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.