Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify any geographic limitations on the non-competition provisions?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
E. NON-EXCLUSIVE TERRITORIAL RIGHTS.
Before this Agreement is executed, Franchisor will describe the Territory in Exhibit B. The size of the Territory shall be determined in Franchisor's sole discretion. Franchisee's rights in the Territory during the term of this Agreement are non-exclusive and Franchisee may face competition from Franchisor or other FocalPoint Franchised Businesses. Franchisee must advertise and solicit clients for the Franchised Business only within the Territory. Franchisee may not operate the Franchised Business or provide Services outside of the Territory; provided, however, Franchisee may provide Services to a client outside the Territory if the client (i) is a
personal acquaintance of Franchisee, (ii) was referred to Franchisee, or (iii) resulted from Franchisee's indirect marketing efforts through digital media.
F. RIGHTS FRANCHISOR RESERVES.
Franchisor and Franchisor's affiliates retain all rights with respect to FocalPoint Franchised Businesses, the Marks, the sale of identical, similar or dissimilar products and services, and any other activities Franchisor deems appropriate whenever and wherever Franchisor desires. Specifically, but without limitation, Franchisor reserves the following rights:
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisee is assigned a territory as described in Exhibit B of the franchise agreement. While Focalpoint Coaching grants non-exclusive territorial rights, the franchisee is generally required to conduct advertising and solicit clients within this defined territory.
The FDD specifies that a Focalpoint Coaching franchisee may not operate the franchised business or provide services outside of their assigned territory. However, there are exceptions to this rule. A franchisee can provide services to clients outside their territory if the client is a personal acquaintance, was referred to the franchisee, or resulted from the franchisee's indirect marketing efforts through digital media.
This suggests that while there are geographic limitations, Focalpoint Coaching franchisees have some flexibility to serve clients outside their primary territory under certain conditions. The specific details of the territory and the scope of these exceptions would be important for a prospective franchisee to understand.
It is important to note that Focalpoint Coaching and its affiliates retain all rights with respect to Focalpoint Coaching franchised businesses, the marks, and the sale of products and services wherever they desire. This means that even within a franchisee's territory, Focalpoint Coaching can still operate and compete.