Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement require the Individual to take any specific actions to protect confidential information?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) will not use Confidential Information in any other business or capacity;
- (b) will keep each item deemed to be part of Confidential Information absolutely confidential, both during this Agreement's term and then thereafter for
as long as the item is not generally known in the business training and consulting industry;
- (c) will not sell, trade or otherwise profit in any way from the Confidential Information (including by selling or assigning any client names, addresses, phone numbers, e-mail contact information, or related data), unless Franchisor otherwise authorizes or approves in Franchisor's sole judgment;
- (d) will not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form; and
- (e) will adopt and implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including, without limitation, restricting its disclosure to Franchised Business personnel and other need-to-know personnel and using non-disclosure and non-competition agreements with those having access to Confidential Information. Franchisor has the right to regulate the form of agreements that Franchisee uses and to be a third party beneficiary of those agreements with independent enforcement rights.
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 outlines specific actions the Individual must take to protect confidential information. These actions are required both during the term of the agreement and after its expiration or termination.
During the agreement, the individual is prohibited from using Confidential Information in any other business or capacity. They must keep all Confidential Information absolutely confidential as long as it is not generally known in the business training and consulting industry. The individual cannot sell, trade, or profit from the Confidential Information, including client data, without the Franchisor's authorization. Unauthorized copying of Confidential Information in any form is also prohibited.
Furthermore, the agreement mandates the implementation of reasonable procedures to prevent unauthorized use or disclosure of Confidential Information. This includes restricting its disclosure to necessary personnel within the Franchised Business and utilizing non-disclosure and non-competition agreements with those who have access to it. Focalpoint Coaching retains the right to regulate the form of these agreements and to be a third-party beneficiary with independent enforcement rights.
These measures aim to safeguard Focalpoint Coaching's proprietary information and maintain its competitive advantage within the business training and consulting industry. A prospective franchisee should carefully review these obligations to understand the extent of their responsibilities in protecting confidential information and the potential consequences of failing to do so.