What law governs non-competition covenants for Focalpoint Coaching employees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to obtain similar covenants from the personnel Franchisor specifies, including officers, directors, managers, Associates and other employees attending Franchisor's training program or having access to Confidential Information. Franchisor has the right to regulate the form of agreement that Franchisee uses and to be a third party beneficiary of that agreement with independent enforcement rights.
Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.
The forgoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by article 33 of the General Business law of the state of New York.
However, to the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisee must secure non-compete agreements from specified personnel, including officers, directors, managers, associates, and other employees who attend Focalpoint Coaching's training program or have access to confidential information. Focalpoint Coaching retains the right to regulate the form of the agreement and to be a third-party beneficiary with independent enforcement rights. This indicates that Focalpoint Coaching seeks to protect its interests by ensuring that key personnel are bound by non-compete obligations.
The FDD also specifies that covenants not to compete are generally considered unenforceable in North Dakota; however, Focalpoint Coaching will seek to enforce them to the extent enforceable. For franchisees operating in North Dakota, the North Dakota Franchise Investment Law may apply, potentially modifying the standard terms of the franchise agreement, including those related to non-competition.
Furthermore, the FDD states that the choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by article 33 of the General Business law of the state of New York. To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied. Therefore, the specific laws governing non-competition covenants for Focalpoint Coaching employees can vary based on the location of the franchise and applicable state laws, such as those in North Dakota and New York.