Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement define what constitutes 'association with' the Franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
I further agree that, during the term of my employment/service/association or ownership participation, I will not, directly or indirectly, engage or participate in any Competitive Business (defined below in this paragraph), any of which such prohibited behavior I understand and hereby explicitly acknowledge would or could be injurious to, or (in Company's sole judgment) have an adverse effect upon, Company's protectable interests in the Confidential Information, the "FocalPoint" trademark or related Marks, or the goodwill and/or reputation of FocalPoint Franchised Businesses generally. I agree that, unless Company provides prior written consent in its sole discretion, I am prohibited from engaging in any Competitive Business as a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant. For purposes of this Agreement, a "Competitive Business" means (i) any business which derives more than twenty percent (20%) of its revenue from selling business training or business consulting services and/or selling or offering products similar to those offered or sold by the Business; or (ii) grants franchises or licenses to others to operate the type of business specified in the preceding subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement 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.
I acknowledge and understand that the provisions of this Agreement, including my representations, covenants, and warranties (as applicable) given hereunder, are necessary and integral to this Agreement and to Company's and Franchisee's interests under the Franchise Agreement, and are intended to:
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement specifies what constitutes 'association' with the franchisee. It states that during the term of employment, service, association, or ownership participation, the individual agrees not to engage or participate in any Competitive Business, which could be injurious to the company's interests.
The agreement explicitly prohibits engaging in any Competitive Business as a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant, unless Focalpoint Coaching provides prior written consent. This definition is broad, covering various forms of association with a Competitive Business. A 'Competitive Business' is defined as any business deriving more than 20% of its revenue from selling business training or consulting services, or granting franchises/licenses to others to operate a similar business, excluding other Focalpoint Coaching franchises.
Upon termination of employment, association, service, or ownership participation, the individual must return all Confidential Information and refrain from contacting Focalpoint Coaching clients. For two years post-termination, the individual is restricted from owning an interest in or providing services to a Competitive Business within specific geographic areas, including the office location, the territory, a 25-mile radius of the territory, or the territory of any other Focalpoint Coaching franchise. This restriction also extends to any entity granting franchises or licenses for Competitive Businesses.
These provisions aim to prevent direct and indirect competition, including consultation or service as an independent contractor for Competitive Businesses. The agreement binds any person or entity with a legal or beneficial interest in the individual, including family members, partners, and related entities. The document acknowledges that the individual possesses general skills and opportunities for exploiting such skills outside of Focalpoint Coaching or Competitive Businesses, ensuring that the enforcement of these covenants does not deprive them of their ability to earn a living.