Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify any exceptions to the non-disclosure obligations?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement does include a specific exception. The agreement states that it will not prevent an individual from owning, for investment purposes, less than two percent (2%) of a Competitive Business. This exception applies only if the Competitive Business's stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and neither the individual nor the franchisee controls the company in question.

This exception provides a limited allowance for franchisees or individuals associated with a Focalpoint Coaching franchise to hold minor investment positions in publicly traded competitor companies without violating the non-compete agreement. This acknowledges that small, passive investments are unlikely to pose a significant competitive threat or involve the unauthorized disclosure of confidential information.

However, it's important to note that this exception is narrowly defined. It only applies to publicly traded companies where the individual's ownership stake is less than 2%, and where neither the individual nor the franchisee has control over the competitor company. Any other form of involvement with a Competitive Business, such as serving as a proprietor, partner, investor (beyond the 2% limit), shareholder, director, officer, employee, principal, agent, advisor, or consultant, would still be prohibited under the agreement, unless Focalpoint Coaching provides prior written consent.