Are the operating results and financial performance of other Focalpoint Coaching Franchised Businesses considered Confidential Information?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the operating results and financial performance of other Focalpoint Coaching franchised businesses are considered Confidential Information. Franchisees and their employees are prohibited from disclosing this information to any outside party. This restriction remains in effect during and after the term of employment, ownership, or association with the Focalpoint Coaching franchise.
Specifically, the FDD states that franchisees cannot communicate, divulge, or use the company's proprietary and confidential information for the benefit of any other person or entity. This includes knowledge of the operating results and financial performance of businesses within the Focalpoint Coaching network, excluding those the franchisee directly owns. This confidentiality extends to various aspects of the Focalpoint Coaching business, such as site selection criteria, training materials, sales and marketing programs, client lists, supplier information, computer systems, and any other information designated as proprietary or confidential by Focalpoint Coaching.
This confidentiality clause is typical in franchising to protect the competitive advantage and proprietary knowledge of the franchise system. For a prospective Focalpoint Coaching franchisee, this means they will have access to sensitive business information about other franchisees' performance, but they are legally obligated to keep this information confidential. Violating this confidentiality agreement could lead to legal repercussions and damage the Focalpoint Coaching brand. Franchisees should ensure their employees are also aware of and adhere to these confidentiality requirements.