Does the Focalpoint Coaching Nondisclosure and Non-Competition Agreement specify any geographic limitations on the use of confidential information related to Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer 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 agree that during the term of my employment by, ownership participation in, association with or service to Franchisee, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity, Company's proprietary and confidential information relating to the development and operation of FocalPoint Franchised Businesses, including but not limited to the following concerning FocalPoint Franchised Businesses: (1) site selection criteria; (2) training and operations materials and manuals; (3) sales, marketing and advertising programs and techniques; (4) client lists and records; (5) identity of suppliers, and knowledge of specifications and pricing for products, materials, supplies and equipment that Company authorizes; (6) knowledge of operating results and financial performance of businesses in the network, other than those franchised businesses that Franchisee owns; (7) computer systems and software programs; and (8) any and all other information Company provides to me, Franchisee, Franchisee's Owners or Affiliates that is designated orally or in writing as proprietary or confidential, or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential (collectively, all information referenced above, including examples (1) through (8), is known as the "Confidential Information").
Furthermore, any and all information, knowledge, know-how, techniques and information which the entities mentioned above (or their officers) designate as confidential is considered, and hereby acknowledged by me, to be Confidential Information for the purposes of this Agreement, except information which I can demonstrate came to my attention before disclosure or which had become or becomes a part of the public domain through publication or communication by others (unless the publication or communication violates a similar confidentiality agreement), but in no event through any act of mine.
I specifically understand that, without limitation, all the above items, concepts, and/or examples contained in the preceding paragraph constitute Confidential Information of Company, and I will not divert any business to competitors of Franchisee and/or Company. I will at no time copy, duplicate, record or otherwise reproduce any of the Confidential Information or material containing it, in whole or in part, store them in a computer retrieval or database, nor otherwise make the them available to any unauthorized person.
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.
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 does not explicitly define geographic limitations regarding the use of confidential information. The agreement broadly prohibits the communication, divulgence, or use of Focalpoint Coaching's proprietary and confidential information for the benefit of any other entity, without specifying a particular geographic area. This restriction applies both during the term of employment, ownership, participation, association, or service with the franchisee and at any time thereafter.
The agreement defines "Confidential Information" extensively, including site selection criteria, training materials, sales techniques, client lists, supplier information, operating results, computer systems, and any other information designated as proprietary or confidential. It also prevents franchisees from diverting business to competitors. The franchisee is responsible for implementing procedures to prevent unauthorized use or disclosure of confidential information, including using non-disclosure and non-competition agreements with personnel who have access to it.
While the agreement lacks specific geographic limitations on the use of confidential information, it does state that the individual will not engage or participate in any Competitive Business, which is defined as any business deriving more than 20% of its revenue from selling business training or consulting services, or grants franchises or licenses to others to operate a similar business. This restriction applies during the term of employment, service, association, or ownership participation. The absence of explicit geographic limitations in the nondisclosure agreement means that the restrictions on using confidential information potentially apply without any specific geographic boundary.
Prospective franchisees should seek clarification from Focalpoint Coaching regarding the interpretation and enforcement of these non-disclosure and non-competition clauses, particularly concerning activities that may occur outside of their primary franchise territory. Understanding the scope of these restrictions is crucial for franchisees to avoid potential breaches of the agreement and associated legal ramifications.