What is the stated goal of the Focalpoint Coaching agreement regarding the company's protectable legal interests?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
; (b) within the Territory; (c) within a twenty-
five (25)-mile radius of the Territory; (d) within the territory of any FocalPoint Franchised Business in operation or under construction on the effective date of termination or expiration of my employment/service/association/ ownership participation; or (e) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business.
I acknowledge and understand that the provisions of this Agreement, including my representations, covenants, and warranties (as applicable) given hereunder, are necessary and integral to this Agreement and to Company's and Franchisee's interests under the Franchise Agreement, and are intended to:
- (i) preclude not only direct competition, but also all forms of indirect competition, such as consultation for Competitive Businesses, service as an independent contractor for Competitive Businesses, or any assistance or transmission of information of any kind which would be of any material assistance to a competitor;
- (ii) bind any person or entity having any legal or beneficial interest in me, or traceable to, down or through me, including (without limitation) any of member of my Immediate Family, any direct or indirect beneficiary, any partner (general or limited) or proprietor of mine, and any other such related person or entity, regardless of how many levels or tiers there may be between any such described person or entity and me; and
- (iii) identify for me, toward the goal of preserving through this Agreement, Company's protectable legal interests in the System, clients of FocalPoint Franchised Businesses, the Confidential Information, and the goodwill associated with the Marks.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the agreement aims to safeguard the company's legal interests. Specifically, the agreement intends to identify for the franchisee the company's protectable legal interests in the System, clients of FocalPoint Franchised Businesses, the Confidential Information, and the goodwill associated with the Marks.
This means that the agreement is structured to prevent both direct and indirect competition. It seeks to bind any person or entity with a legal or beneficial interest in the franchisee, including family members and business partners, to prevent them from engaging in competitive activities. The agreement also acknowledges the franchisee's general skills and opportunities to use those skills outside of the Focalpoint Coaching business or competitive ventures, aiming to ensure that the enforcement of the agreement does not deprive the franchisee of their ability to earn a living.
Furthermore, if a franchisee breaches any obligations under the agreement, the period during which the covenant is breached will be tolled, and the obligations will continue for two years from the date of the enforcement order. This provision ensures that Focalpoint Coaching can protect its interests effectively even if a franchisee violates the terms of the agreement.