What obligation does a Focalpoint Coaching franchisee have regarding covenants from personnel?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
I acknowledge and understand that the provisions of this Agreement, including my representations, covenants, and warranties (as applicable) given hereunder, are necessary and integral to this Agreement and to Company's and Franchisee's interests under the Franchise Agreement, and are intended to:
- (i) preclude not only direct competition, but also all forms of indirect competition, such as consultation for Competitive Businesses, service as an independent contractor for Competitive Businesses, or any assistance or transmission of information of any kind which would be of any material assistance to a competitor;
- (ii) bind any person or entity having any legal or beneficial interest in me, or traceable to, down or through me, including (without limitation) any of member of my Immediate Family, any direct or indirect beneficiary, any partner (general or limited) or proprietor of mine, and any other such related person or entity, regardless of how many levels or tiers there may be between any such described person or entity and me; and
- (iii) identify for me, toward the goal of preserving through this Agreement, Company's protectable legal interests in the System, clients of FocalPoint Franchised Businesses, the Confidential Information, and the goodwill associated with the Marks.
I also expressly acknowledge my possession of skills and abilities of a general nature, and the opportunity for exploiting such skills in other ways than the operation or involvement in the activities of a FocalPoint Franchised Business or a Competitive Business, so that enforcement of my covenants made in this Agreement will not deprive me of my personal goodwill or ability to earn a living after the effective date of expiration or termination of my relationship with Franchisee, the Business, or FocalPoint Franchised Businesses generally. If I fail or refuse to abide by any of my foregoing obligations or promises made under this Agreement, and Company or Franchisee obtains enforcement in a judicial or arbitration proceeding, then my obligations and responsibilities specified under the breached covenant will be tolled during the period(s) of time that the covenant is breached and/or Company or Franchisee seeks to enforce it, and will continue for two (2) years starting from the effective date of the order enforcing the covenant.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the franchisee acknowledges that the provisions of the Franchise Agreement, including representations, covenants, and warranties, are essential to the agreement and the interests of both Focalpoint Coaching and the franchisee. These provisions aim to prevent direct and indirect competition, such as consulting for competitive businesses or assisting competitors in any way.
The agreement binds any person or entity with a legal or beneficial interest in the franchisee, including family members, beneficiaries, partners, and related entities, regardless of the number of levels between them and the franchisee. This is intended to protect Focalpoint Coaching's legal interests in its system, clients, confidential information, and brand goodwill.
The franchisee also acknowledges their skills and abilities and the opportunity to use them in ways other than operating a Focalpoint Coaching franchise or a competitive business. This ensures that enforcing the covenants will not deprive the franchisee of their personal goodwill or ability to earn a living after the franchise relationship ends. If the franchisee breaches any obligations, the breached covenant will be tolled during the period of the breach and enforcement, and will continue for two years from the date of the enforcement order.