factual

Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify what constitutes 'service to' the Franchisee?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS NONDISCLOSURE AND NON-COMPETITION AGREEMENT (this
"Agreement") is made as of the
day of, 20, is executed by
("Individual," "me," or "I") for the benefit of
a
Nevada
corporation
("Company"),
and
for
FOCALPOINT
COACHING,
INC.,
, a/an ("Franchisee").
Franchisee is a franchisee of Company pursuant to a franchise agreement entered into by
those parties concerning a business operating, or to be operated, under the "FocalPoint" name at
(the
"Franchise
Agreement").
The
franchised
business
Company authorizes Franchisee to operate under the Franchise Agreement is known as the
"Business," which Business is one among all businesses that Company owns, operates, or
franchises under the "FocalPoint" name. I agree that, unless otherwise specified, all capitalized
terms in this Agreement have those meanings ascribed to them in the Franchise Agreement.

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, legal

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

What This Means (2025 FDD)

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement outlines certain restrictions regarding an individual's association with the company and its franchisees. Specifically, it addresses the conduct of individuals during and after their employment, service, association, or ownership participation with a Focalpoint Coaching franchise.

The agreement states that during the term of employment, service, association, or ownership, the individual cannot directly or indirectly engage or participate in any Competitive Business. The document defines a "Competitive Business" as one that derives more than 20% of its revenue from selling business training or consulting services, or grants franchises or licenses to others to operate a similar type of business, excluding other Focalpoint Coaching franchises. This restriction extends to various roles such as proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant.

Upon termination of employment, association, service, or ownership, the individual must return all confidential information and refrain from contacting clients of Focalpoint Coaching franchises. Additionally, for two years following termination, the individual is prohibited from engaging in a Competitive Business, either directly or indirectly. This includes actions through a spouse, legal representative, or other entity. The agreement aims to protect Focalpoint Coaching's confidential information, trademarks, and goodwill by preventing individuals associated with the franchise from using their knowledge and connections to benefit competing businesses.

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.