Must a Focalpoint Coaching franchisee use non-disclosure agreements with personnel having access to Confidential Information?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
il contact information, or related data), unless Franchisor otherwise authorizes or approves in Franchisor's sole judgment;
- (d) will not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form; and
- (e) will adopt and implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including, without limitation, restricting its disclosure to Franchised Business personnel and other need-to-know personnel and using non-disclosure and non-competition agreements with those having access to Confidential Information. Franchisor has the right to regulate the form of agreements that Franchisee uses and to be a third party beneficiary of those agreements with independent enforcement rights.
Confidential Information does not include information, knowledge, or know-how which Franchisee can demonstrate lawfully came to Franchisee's attention before Franchisor provided it to Franchisee directly or indirectly;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees are required to adopt and implement reasonable procedures to prevent unauthorized use or disclosure of confidential information. This includes restricting its disclosure to personnel with a need to know and using 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 means that as a Focalpoint Coaching franchisee, you must ensure that your employees and other personnel who have access to sensitive company information sign non-disclosure and non-competition agreements. These agreements are designed to protect Focalpoint Coaching's confidential information, such as training materials, operational methods, client lists, and other proprietary data. The franchisor's right to regulate the form of these agreements ensures consistency and enforceability across the franchise system.
Focalpoint Coaching also requires franchisees to obtain similar covenants, including non-disclosure agreements, from specified personnel such as officers, directors, managers, associates, and other employees attending Focalpoint Coaching's training program or having access to confidential information. This requirement extends the protection of confidential information beyond just the franchisee to a broader range of individuals involved in the business. By mandating these agreements, Focalpoint Coaching aims to safeguard its trade secrets and maintain a competitive advantage.
Failure to implement these non-disclosure agreements and protect confidential information could result in legal repercussions and damage to the Focalpoint Coaching brand. Therefore, it is crucial for prospective franchisees to understand and comply with these requirements to maintain a successful and compliant franchise operation.