Must a Focalpoint Coaching franchisee restrict disclosure of Confidential Information to need-to-know personnel?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, franchisees must adopt and implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information. This includes restricting its disclosure to Franchised Business personnel and other need-to-know personnel. Franchisees are also required to use non-disclosure and non-competition agreements with those having access to Confidential Information. Focalpoint Coaching retains the right to regulate the form of these agreements and to be a third-party beneficiary with independent enforcement rights. This ensures that sensitive business data and trade secrets are protected within the franchise network.

Confidential Information, as defined in the FDD, includes a wide array of proprietary information related to the Focalpoint Coaching system. This includes site selection criteria, training and operations manuals, sales, marketing, and advertising programs, client lists, supplier information, operating results, computer systems, and any other information designated as proprietary or confidential. The franchisee acknowledges that they will not acquire any interest in the Confidential Information, other than the right to use it as specified by Focalpoint Coaching for operating the Franchised Business during the agreement term.

However, the FDD also specifies exclusions to what constitutes Confidential Information. Information that the franchisee can demonstrate lawfully came to their attention before Focalpoint Coaching provided it, or information that was already generally known in the business training and consulting industry, is not considered confidential. Similarly, information that lawfully becomes generally known after disclosure by Focalpoint Coaching, without violating any obligations to the franchisor, is also excluded. The burden of proof lies with the franchisee to demonstrate that any information claimed not to be Confidential Information meets one of these exclusions.

In practical terms, a prospective Focalpoint Coaching franchisee must understand the scope of Confidential Information and the measures required to protect it. This includes implementing internal procedures to limit access to sensitive data to only those employees who require it for their job functions and ensuring that all such personnel sign appropriate non-disclosure and non-competition agreements. Failure to adequately protect Confidential Information could result in legal repercussions and damage to the Focalpoint Coaching brand.