Does Focalpoint Coaching have the right to be a party to the non-disclosure agreements used by the franchisee?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the right to regulate the form of the non-disclosure agreements that a franchisee uses with their personnel. The franchisee must obtain non-disclosure covenants from personnel that Focalpoint Coaching specifies, such as officers, directors, managers, associates, and other employees attending Focalpoint Coaching's training program or having access to confidential information.

Furthermore, Focalpoint Coaching has the right to be a third-party beneficiary of these agreements, which means Focalpoint Coaching can directly enforce the terms of the non-disclosure agreements against the franchisee's personnel. This ensures that Focalpoint Coaching can protect its confidential information and trade secrets, even if the franchisee fails to do so.

This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and systems. By having the right to regulate the form of the agreement and be a third-party beneficiary, Focalpoint Coaching maintains control over how its confidential information is handled and has the legal means to enforce these protections. A prospective franchisee should carefully review the specific requirements for these non-disclosure agreements in the franchise agreement and operations manual to understand their obligations.