After termination or expiration, are there any restrictions on contacting clients of Focalpoint Coaching Franchised Businesses?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree:
- (i) to return immediately to Company or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access, during my employment, association, service or ownership participation;
- (ii) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with clients of FocalPoint Franchised Businesses for any purpose whatsoever; and
- (iii) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, legally-recognized domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or rendering services or giving advice to: any Competitive Business operating (a) at the premises where the Office is located; (b) within the Territory; (c) within a twenty-
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, there are restrictions on contacting clients of Focalpoint Coaching franchised businesses after termination or expiration of involvement with the franchise. Specifically, franchisees must refrain from any and all contacts with clients of Focalpoint Franchised Businesses for any purpose whatsoever, beginning upon termination or expiration and continuing forever. This restriction applies to anyone whose employment, association, service, or ownership participation has ended.
This perpetual restriction on contacting clients is a significant point for prospective franchisees. It means that after leaving the Focalpoint Coaching system, a former franchisee is permanently barred from soliciting or engaging with any client of any Focalpoint Coaching franchise, regardless of whether the client was originally acquired by the franchisee. This could limit a former franchisee's ability to operate a similar business or leverage their network in the future.
The FDD also states that these covenants are integral to protecting Focalpoint Coaching's interests in its client relationships and goodwill. The agreement acknowledges that individuals possess general skills and abilities that can be exploited in other ways, ensuring that the enforcement of these covenants does not deprive them of their ability to earn a living after leaving the franchise. However, the restriction on client contact remains a key consideration for anyone considering investing in a Focalpoint Coaching franchise.
Furthermore, the agreement specifies that if a franchisee breaches these obligations and Focalpoint Coaching seeks enforcement through legal proceedings, the obligations will be tolled during the period of the breach and enforcement efforts, and will continue for two years from the date of the enforcement order. This highlights the seriousness with which Focalpoint Coaching views these restrictions and the potential legal ramifications for non-compliance.