What specific covenants are referenced in Subsections 15.D and 15.E regarding non-competition and non-solicitation for Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
D. COVENANT NOT TO COMPETE.
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.
E. COVENANT NOT TO SOLICIT.
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, officers, directors or employees will, directly or indirectly (e.g., through a spouse), solicit, or attempt to solicit, any client of Franchisor or of any of Franchisor's affiliates, franchise owners or area representatives to discontinue the client relationship with Franchisor or with any of Franchisor's affiliates, franchise owners or area representatives. In addition, the use of Franchisor's client lists, employee files or other such Confidential Information for the purpose of soliciting is prohibited.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Subsections 15.D and 15.E outline specific covenants related to non-competition and non-solicitation.
Subsection 15.D, the covenant not to compete, states that upon termination or expiration of the Franchise Agreement, the franchisee and their owners are restricted for two years from having any direct or indirect interest in a Competitive Business. This restriction applies to being an owner, investor, partner, director, officer, employee, consultant, representative, or agent. The restriction is applicable (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.
Subsection 15.E details the covenant not to solicit. For two years after the termination or expiration of the Franchise Agreement, the franchisee and their owners, officers, directors, or employees are prohibited from directly or indirectly soliciting or attempting to solicit any client of Focalpoint Coaching, its affiliates, franchise owners, or area representatives to discontinue their relationship with them. The use of Focalpoint Coaching's client lists, employee files, or other confidential information for solicitation purposes is also prohibited.
These covenants aim to protect Focalpoint Coaching's market, client base, and confidential information by preventing former franchisees from leveraging their knowledge and relationships gained during the franchise agreement to compete against the brand or poach clients. These restrictions are common in franchising to maintain brand integrity and protect the franchise system.