For Focalpoint Coaching, what is the radius, in miles, from the territory within which the covenant not to compete applies?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement, Franchisee and Franchisee's owners agree that, for two (2) years beginning on the effective date of termination or expiration of this Agreement (or upon a transfer as provided in Subsection 12.C(12) above), whichever is later, neither Franchisee nor any of Franchisee's owners will have any direct or indirect interest (e.g., through a spouse) as an owner (whether of record, beneficially, or otherwise), investor, partner, director, officer, employee, consultant, representative, or agent in any Competitive Business (as defined in Section 7 above) located or operating:
- (i) at the premises where the Office is located;
- (ii) within the Territory;
- (iii) within a twenty-five (25) mile radius of the Territory;
- (iv) within the Territory of any other FocalPoint Franchised Business in operation or in the process of opening on the later of the effective date of the termination or expiration of this Agreement or the date on which all persons restricted by this Subsection 15.D begin to comply with this Subsection 15.D.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the covenant not to compete extends to a 25-mile radius from the franchisee's territory. This restriction applies for two years following the termination or expiration of the Franchise Agreement. During this period, the franchisee and their owners are prohibited from having any direct or indirect interest in a Competitive Business within that 25-mile radius.
This non-compete obligation also applies to the premises where the Focalpoint Coaching office is located and within the franchisee's designated territory. Furthermore, the restriction extends to the territory of any other Focalpoint Coaching franchise that is either in operation or in the process of opening. The start date for complying with this covenant is the later of either the termination/expiration date of the agreement or the date when all individuals bound by this covenant begin to adhere to it.
For a prospective Focalpoint Coaching franchisee, this means that upon leaving the franchise system, they cannot operate or be involved with a competing business within their former territory or within 25 miles of it. This restriction aims to protect Focalpoint Coaching's market share and confidential business information. Franchisees should carefully consider the implications of this covenant, especially if they plan to remain in the same geographic area after their franchise agreement ends. They should also be aware of the potential legal ramifications of violating this covenant, as Focalpoint Coaching may seek injunctive relief to enforce it.