Can a Focalpoint Coaching franchisee use confidential information in an unauthorized manner?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use our confidential information in an unauthorized manner. You must take reasonable steps to prevent its improper disclosure to others. You agree to have our Non-Disclosure and Non-Competition Agreement (the current form of which is attached as Exhibit D of the Franchise Agreement) executed by all of the following persons: (i) the Business Manager and any supervisory or other employees and Associates who have received or will receive training from us, prior to their employment; (ii) if you are an entity, all your officers, directors, shareholders, partners, members and owners, and those of any entity directly or indirectly controlling you, at the same time the Franchise Agreement is signed, or at such time as they assume such status; and (iii) you, your owners and your and your owners' spouses. You agree to provide us copies of all executed Nondisclosure and Non-Competition Agreements no later than 10 days following their execution. We will be a third party beneficiary of that agreement with independent enforcement rights.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 40–42)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from using the franchisor's confidential information in an unauthorized manner. The FDD states, "You may not use our confidential information in an unauthorized manner." This restriction is a standard practice in franchising to protect the franchisor's proprietary business methods, trade secrets, and other sensitive information.
The agreement requires franchisees to take reasonable steps to prevent the improper disclosure of confidential information to others. To ensure compliance, Focalpoint Coaching mandates that franchisees, their owners, their owners' spouses, the Business Manager, supervisory employees, and other associates who receive training must execute a Non-Disclosure and Non-Competition Agreement. These agreements must be provided to Focalpoint Coaching within 10 days of execution, and Focalpoint Coaching is designated as a third-party beneficiary with independent enforcement rights.
Confidential information includes, but is not limited to, site selection criteria, training and operations manuals, sales and marketing programs, client lists, supplier information, operating results of other franchisees, and computer systems. Franchisees acknowledge that they only have the right to use this information as specified by Focalpoint Coaching for operating their franchise. They cannot use it in any other business, sell or trade it, or make unauthorized copies. Franchisees must also implement procedures to prevent unauthorized use or disclosure, including using non-disclosure agreements with personnel who have access to the information. Failing to comply with these confidentiality obligations could lead to termination of the franchise agreement and legal action by Focalpoint Coaching.