Does Focalpoint Coaching have the right to regulate the form of non-disclosure agreements used by franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
g products similar to the Proprietary Products or (ii) any business granting franchises or licenses to others to operate the type of business specified in subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Franchisor).
Franchisee agrees to obtain similar covenants from the personnel Franchisor specifies, including officers, directors, managers, Associates and other employees attending Franchisor's training program or having access to Confidential Information. Franchisor has the right to regulate the form of agreement that Franchisee uses and to be a third party beneficiary of that agreement with independent enforcement rights.
Franchisee agrees to have all of the following persons sign, and Franchisee will submit to Franchisor an executed copy of, Franchisor's then current form of Nondisclosure and Non-Competition Agreement (a current form of which is set forth in Exhibit C) from all of the following persons: (i) the Business Manager and any supervisory or other employees and Associates who have received or will receive training from Franchisor, prior to their employment; (ii) if Franchisee is an Entity, all Franchisee's officers, directors, shareholders, partners, members and owners, and those of any Entity directly or indirectly controlling Franchisee, concurrent with the execution of this Agreement, or at such time as they assume such status;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the right to regulate the form of non-disclosure agreements that franchisees use. Specifically, Focalpoint Coaching requires franchisees to obtain covenants, including non-disclosure agreements, from personnel they specify, such as officers, directors, managers, associates, and other employees who attend Focalpoint Coaching's training program or have access to confidential information.
This means that as a Focalpoint Coaching franchisee, you must ensure that your personnel who meet the specified criteria sign non-disclosure agreements. Furthermore, the form or template of these agreements must be approved by Focalpoint Coaching. This requirement ensures that all personnel with access to sensitive company information are bound by consistent and enforceable confidentiality terms.
Focalpoint Coaching also has the right to be a third-party beneficiary of these agreements, which grants them independent enforcement rights. This provision allows Focalpoint Coaching to directly enforce the non-disclosure agreements against the franchisee's personnel, providing an additional layer of protection for its confidential information and trade secrets. This is a fairly common practice in franchising, as franchisors seek to protect their proprietary information and maintain consistency across the franchise system.