Is the knowledge of the operating results and financial performance of Focalpoint Coaching Franchised Businesses (other than the specific Franchised Business) considered confidential and proprietary?
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, knowledge of the operating results and financial performance of Focalpoint Coaching Franchised Businesses (other than the specific Franchised Business) is considered confidential and proprietary information. This means that franchisees are prohibited from sharing or using this information for the benefit of any other person or entity. This restriction applies both during the term of the franchise agreement and at any time thereafter.
Specifically, the FDD states that franchisees cannot communicate, divulge, or use the company's proprietary and confidential information relating to the development and operation of FocalPoint Franchised Businesses. This includes, but is not limited to, site selection criteria, training and operations materials, sales and marketing programs, client lists, supplier information, and knowledge of operating results and financial performance of other businesses in the network. This broad definition ensures that a wide range of information critical to the franchise system's success remains protected.
For a prospective Focalpoint Coaching franchisee, this confidentiality requirement has several implications. It reinforces the importance of protecting the franchise system's trade secrets and competitive advantages. It also means that franchisees must be careful about how they handle and share information, even with potential business partners or advisors. Failure to comply with these confidentiality obligations could result in legal action or termination of the franchise agreement. Franchisees should take steps to ensure that their employees and affiliates are also aware of and comply with these restrictions.