Is the Individual allowed to divulge Focalpoint Coaching site selection criteria?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that during the term of my employment by, ownership participation in, association with or service to Franchisee, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity, Company's proprietary and confidential information relating to the development and operation of FocalPoint Franchised Businesses, including but not limited to the following concerning FocalPoint Franchised Businesses: (1) site selection criteria; (2) training and operations materials and manuals; (3) sales, marketing and advertising programs and techniques; (4) client lists and records; (5) identity of suppliers, and knowledge of specifications and pricing for products, materials, supplies and equipment that Company authorizes; (6) knowledge of operating results and financial performance of businesses in the network, other than those franchised businesses that Franchisee owns; (7) computer systems and software programs; and (8) any and all other information Company provides to me, Franchisee, Franchisee's Owners or Affiliates that is designated orally or in writing as proprietary or confidential, or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential (collectively, all information referenced above, including examples (1) through (8), is known as the "Confidential Information").
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, individuals are prohibited from divulging the company's site selection criteria. The agreement specifies that during and after the term of employment, ownership, or association with a Focalpoint Coaching franchisee, an individual cannot communicate or use the company's confidential information, including site selection criteria, for the benefit of any other entity. This restriction is in place to protect Focalpoint Coaching's proprietary information and maintain a competitive advantage.
The FDD makes it clear that site selection criteria are considered confidential information, alongside other key operational aspects such as training materials, sales techniques, client lists, supplier information, and financial performance data. This broad definition of confidential information underscores the importance Focalpoint Coaching places on safeguarding its business practices and intellectual property. The agreement emphasizes that this information is proprietary and includes Focalpoint Coaching's trade secrets.
For a prospective Focalpoint Coaching franchisee, this means that they and their employees must maintain strict confidentiality regarding the company's site selection process. Sharing this information with unauthorized parties could result in a breach of the franchise agreement and potential legal consequences. This confidentiality clause is a standard practice in franchising, designed to protect the franchisor's system and prevent unfair competition.