What are the Focalpoint Coaching franchisee's obligations regarding confidential information upon termination or expiration of the franchise agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that, when this Agreement expires or is terminated, (1) Franchisee will immediately cease using any of Franchisor's Confidential Information (including computer software or similar technology and digital passwords and identifications that Franchisor has licensed to Franchisee or that otherwise are proprietary to Franchisor or the Franchise System) in any business or otherwise; (2) return to Franchisor all copies of the Operations Manual and any other confidential materials that Franchisor has provided Franchisee for Franchisee's use during the term of this Agreement; and (3) immediately deliver to Franchisor all training or other manuals furnished to Franchisee (including the Operations Manual and any supplements to the Operations Manual), computer software and database material, client lists, records and files, documents, instructions, display items, advertising and promotional material, any and all materials, signs and related items which bear the Marks or slogans and insignias and designs, advertising contracts, forms and other materials or property of Franchisor's, and any copies of them in Franchisee's possession which relate to the operation of the Franchised Business. Franchisee may retain no copy or record of any of these items, except for Franchisee's copy of this Agreement, any correspondence between the parties and any other documents which Franchisee reasonably needs for compliance with any provision of law. Franchisee agrees that the foregoing items, materials, client lists, files, software and other similar items are at all times considered to be Franchisor's property for all purposes.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, franchisees have specific obligations regarding confidential information both during and after the franchise agreement expires or is terminated. During the term, franchisees must not communicate, divulge, or use Focalpoint Coaching's proprietary and confidential information for the benefit of any other person or entity. This includes information related to site selection criteria, training and operations materials, sales and marketing programs, client lists, supplier information, operating results, computer systems, and any other information designated as proprietary or confidential.
Upon expiration or termination of the franchise agreement, the franchisee must immediately cease using any of Focalpoint Coaching's confidential information, including software, technology, and digital passwords. They must return all copies of the Operations Manual, confidential materials, training manuals, software, client lists, records, files, documents, and any materials bearing Focalpoint Coaching's marks or slogans. The franchisee cannot retain any copies or records of these items, except for their copy of the Franchise Agreement, correspondence with Focalpoint Coaching, and documents needed for legal compliance.
These obligations are designed to protect Focalpoint Coaching's trade secrets, client relationships, and overall business system. The FDD emphasizes that this information remains Focalpoint Coaching's property at all times. Additionally, the franchisee may be subject to non-compete and non-solicitation agreements, further restricting their activities after the franchise agreement ends. Franchisees must also provide evidence of compliance with these obligations within 30 days of termination or expiration.