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Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify any conditions under which the non-disclosure obligations might be waived for Focalpoint Coaching?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

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:

  • (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; and
  • (iii) identify for me, toward the goal of preserving through this Agreement, Company's protectable legal interests in the System, clients of FocalPoint Franchised Businesses, the Confidential Information, and the goodwill associated with the Marks.

I also expressly acknowledge my possession of skills and abilities of a general nature, and the opportunity for exploiting such skills in other ways than the operation or involvement in the activities of a FocalPoint Franchised Business or a Competitive Business, so that enforcement of my covenants made in this Agreement will not deprive me of my personal goodwill or ability to earn a living after the effective date of expiration or termination of my relationship with Franchisee, the Business, or FocalPoint Franchised Businesses generally. If I fail or refuse to abide by any of my foregoing obligations or promises made under this Agreement, and Company or Franchisee obtains enforcement in a judicial or arbitration proceeding, then my obligations and responsibilities specified under the breached covenant will be tolled during the period(s) of time that the covenant is breached and/or Company or Franchisee seeks to enforce it, and will continue for two (2) years starting from the effective date of the order enforcing the covenant.

Source: Item 22 — Contracts (FDD pages 56–57)

What This Means (2025 FDD)

The 2025 FocalPoint Coaching Franchise Disclosure Document (FDD) includes a sample Nondisclosure and Non-Competition Agreement. This agreement is intended to protect FocalPoint Coaching's interests in its system, client base, confidential information, and brand goodwill. The agreement aims to prevent both direct and indirect competition, including consulting for or assisting competitive businesses. It extends obligations to individuals with legal or beneficial interests related to the franchisee, such as family members or beneficiaries.

The agreement acknowledges that the individual possesses general skills and opportunities for exploiting those skills outside of a FocalPoint Coaching franchise or competitive business. This acknowledgement is meant to ensure that the enforcement of the non-compete will not deprive the individual of their ability to earn a living after their relationship with the FocalPoint Coaching franchise ends.

According to the FDD, if the individual fails to meet the obligations outlined in the agreement, and FocalPoint Coaching or the franchisee seeks enforcement through legal proceedings, the individual's obligations will be suspended during the period of the breach and enforcement efforts. The obligations will then continue for two years from the date of the enforcement order. The FDD does not specify any conditions under which the non-disclosure obligations might be waived.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.