Does the Focalpoint Coaching non-compete agreement bind members of the franchisee's immediate family?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
and integral to this Agreement and to Company's and Franchisee's interests under the Franchise Agreement, and are intended to:
- (i) preclude not only direct competition, but also all forms of indirect competition, such as consultation for Competitive Businesses, service as an independent contractor for Competitive Businesses, or any assistance or transmission of information of any kind which would be of any material assistance to a competitor;
- (ii) bind any person or entity having any legal or beneficial interest in me, or traceable to, down or through me, including (without limitation) any of member of my Immediate Family, any direct or indirect beneficiary, any partner (general or limited) or proprietor of mine, and any other such related person or entity, regardless of how many levels or tiers there may be between any such described person or entity and me;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the non-compete agreement extends to members of the franchisee's immediate family. The agreement is designed to prevent both direct and indirect competition, including consultation, independent contracting, or any assistance to competitive businesses.
The FDD states that the non-compete binds any person or entity with a legal or beneficial interest in the franchisee, including members of their immediate family, beneficiaries, partners, and other related persons or entities. This broad definition ensures that the franchisee cannot bypass the non-compete obligations by involving family members or related parties in competitive activities.
Specifically, upon termination of the franchise, the franchisee must refrain from involvement with any Competitive Business, either directly or indirectly through immediate family, for a period of two years. Immediate family includes spouse, legally-recognized domestic partner, parents, children, or siblings. This restriction applies to owning a legal or beneficial interest in, or rendering services or advice to, a Competitive Business operating in specified locations, including where the office is located, within the territory, within a 25-mile radius of the territory, or within the territory of any Focalpoint Coaching franchise.