Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify what constitutes 'employment by' 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.
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 prohibited activities related to 'employment/service/association or ownership participation'. It states that during the term of employment, service, association, or ownership participation, the individual cannot directly or indirectly engage or participate in any Competitive Business.
The agreement defines engaging in a Competitive Business as being a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant of such a 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 or licenses to others to operate a similar type of business, excluding other FocalPoint Franchised Businesses.
Upon termination of employment, service, association, or ownership participation, the individual must return all Confidential Information and refrain from contacting clients of FocalPoint Franchised Businesses. For two years after termination, the individual is restricted from owning or rendering services to a Competitive Business operating at the office location, within the territory, within a 25-mile radius of the territory, or within the territory of any FocalPoint franchise in operation or under construction. These restrictions also apply to any entity that grants franchises or licenses to operate a Competitive Business.