Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify any conditions under which the non-competition obligations might be waived?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee therefore agrees that, during this Agreement's term and any renewal term, and unless Franchisor provides prior written consent in its sole discretion, neither Franchisee, any of Franchisee's owners, nor any of Franchisee's or Franchisee's owners' spouses will:
- (a) have any direct or indirect controlling or non-controlling interest as an owner – whether of record, beneficially, or otherwise – in a Competitive Business, wherever located or operating (except that equity ownership of 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 will not be deemed to violate this subparagraph);
- (b) perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
- (c) divert or attempt to divert any actual or potential business or client of the Franchised Business or any FocalPoint Franchised Business to a Competitive Business; or
- (d) engage in any other activity which, in Franchisor's sole opinion, might injure the goodwill of the Marks or Franchise System.
The term "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 products similar to the Proprietary Products or (ii) any business granting franchises or licenses to others to operate the type of business specified in subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Franchisor).
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisee is bound by non-compete clauses during the agreement term, including any renewals. However, Focalpoint Coaching may provide prior written consent, at its sole discretion, to waive these non-compete obligations.
Specifically, without prior written consent from Focalpoint Coaching, the franchisee, their owners, and their spouses are restricted from having any ownership interest in a Competitive Business (with a minor exception for less than 2% equity ownership in a publicly traded company). They are also prohibited from performing services for a Competitive Business or diverting business from the Franchised Business or any Focalpoint Coaching Franchised Business to a Competitive Business. Lastly, they cannot engage in any activity that Focalpoint Coaching believes could harm the goodwill of the Marks or Franchise System.
The term "Competitive Business" is defined as any business deriving more than 20% of its revenue from selling business training or consulting services, or from selling products similar to Focalpoint Coaching's Proprietary Products. It also includes any business granting franchises or licenses to others to operate such a business, excluding other Focalpoint Coaching franchises. This means that a franchisee seeking to engage in activities that might be considered competitive needs to obtain explicit written permission from Focalpoint Coaching to avoid violating the agreement.