Does the Guaranty and Assumption of Obligations for Focalpoint Coaching have an expiration date?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
eement with Company). Despite the foregoing definition of a Competitive Business, nothing under this Agreement or the Franchise Agreement will prevent Individual from owning for investment purposes less than two percent (2%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and so long as neither Individual nor Franchisee controls the company in question.
Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree:
- (i) to return immediately to Company or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access, during my employment, association, service or ownership participation;
- (ii) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with clients of FocalPoint Franchised Businesses for any purpose whatsoever; and
- (iii) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, legally-recognized domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or rendering services or giving advice to: any Competitive Business operating (a) at the premises where the Office is located; (b) within the Territory; (c) within a twenty-
five (25)-mile radius of the Territory; (d) within the territory of any FocalPoint Franchised Business in operation or under construction on the effective date of termination or expiration of my employment/service/association/ ownership participation; or (e) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
The 2025 Focalpoint Coaching Franchise Disclosure Document discusses the terms and conditions that apply upon termination or expiration of employment, association, service, or ownership participation. Specifically, it states that after the end of such relationships, the individual must return all confidential information and cease contact with Focalpoint Coaching clients indefinitely.
Furthermore, for a period of two years following the termination or expiration date, the individual is restricted from owning, rendering services, or advising any Competitive Business within certain geographic areas. These areas include the premises where the Focalpoint Coaching office is located, the territory of the franchise, a 25-mile radius of the territory, the territory of any Focalpoint Coaching franchise in operation or under construction, or any entity that grants franchises or licenses for Competitive Businesses.
Additionally, the FDD states that if the individual breaches any of these obligations and Focalpoint Coaching or the franchisee seeks enforcement through legal proceedings, the obligations will be tolled during the breach and enforcement period. The obligations will then continue for two years from the date of the enforcement order. This clause effectively extends the restrictive covenants if a breach occurs and Focalpoint Coaching has to take legal action to enforce them.