Regarding a Focalpoint Coaching franchise, can the franchisee's owners have other business interests?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee therefore agrees that, during this Agreement's term and any renewal term, and unless Franchisor provides prior written consent in its sole discretion, neither Franchisee, any of Franchisee's owners, nor any of Franchisee's or Franchisee's owners' spouses will:
- (a) have any direct or indirect controlling or non-controlling interest as an owner – whether of record, beneficially, or otherwise – in a Competitive Business, wherever located or operating (except that equity ownership of less than two percent (2%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange will not be deemed to violate this subparagraph);
- (b) perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
- (c) divert or attempt to divert any actual or potential business or client of the Franchised Business or any FocalPoint Franchised Business to a Competi
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, franchisees and their owners are restricted from having certain business interests during the term of the agreement. Specifically, they cannot have a direct or indirect ownership interest in a Competitive Business. However, an exception exists for owning less than 2% of a Competitive Business if its stock is publicly traded on a recognized United States stock exchange.
Additionally, franchisees and their owners (including spouses) are prohibited from performing services for a Competitive Business in any capacity, including as a director, officer, manager, employee, consultant, representative, or agent. They are also barred from diverting or attempting to divert any business or client from the Franchised Business or any other Focalpoint Coaching franchise to a Competitive Business.
In summary, while Focalpoint Coaching franchisees can have other business interests, they are significantly restricted from being involved with any business that competes with Focalpoint Coaching, with a minor exception for very small, passive investments in publicly traded competitors. Franchisees should carefully consider these restrictions and seek clarification from Focalpoint Coaching regarding any potential conflicts of interest before investing.