Does Focalpoint Coaching require franchisees to allow the franchisor to be a party to the non-disclosure and non-competition agreements used with personnel having access to Confidential Information?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching franchisees must use non-disclosure and non-competition agreements with personnel who have access to confidential information. Focalpoint Coaching retains the right to regulate the form of these agreements. Furthermore, Focalpoint Coaching has the right to be a third-party beneficiary of these agreements, which means Focalpoint Coaching can directly enforce the agreements, even though they are between the franchisee and their personnel. This ensures Focalpoint Coaching can protect its confidential information and trade secrets.

This requirement means that a Focalpoint Coaching franchisee must ensure that their employees or anyone with access to confidential business information signs agreements that protect that information. These agreements must include clauses preventing the use or disclosure of confidential information. The franchisee must also allow Focalpoint Coaching to enforce these agreements directly, giving the franchisor an additional layer of protection.

This is a fairly standard practice in franchising, particularly when the franchise system relies heavily on proprietary information and trade secrets. By being a third-party beneficiary, Focalpoint Coaching can take swift action against individuals who violate these agreements, regardless of whether the franchisee chooses to pursue legal action. This protects the overall integrity of the Focalpoint Coaching system and its confidential information.