What are the acceptable forms of ownership for a Focalpoint Coaching franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite Subsection 12.C above, if Franchisee is fully complying with this Agreement, Franchisee may transfer this Agreement to a corporation or limited liability company which conducts no business other than the Franchised Business and, if applicable, other FocalPoint Franchised Businesses, in which Franchisee maintains management control, and of which Franchisee owns and controls one hundred percent (100%) of the equity and voting power of all issued and outstanding ownership interests, provided that all of the Franchised Business' assets are owned, and the Franchised Business' business is conducted, only by that single corporation or limited liability company. The corporation or limited liability company must expressly assume all of Franchisee's obligations under this Agreement. Transfers of ownership interests in the corporation or limited liability company are subject to the conditions of Subsection 12.C above that otherwise apply to non-controlling transfers. Franchisee agrees to remain personally liable under this Agreement as if the transfer to the corporation or limited liability company did not occur.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee can transfer the franchise agreement to a corporation or limited liability company if specific conditions are met. This corporation or LLC must exclusively conduct the Focalpoint Coaching franchised business, and the franchisee must maintain 100% ownership and management control.
This means the franchisee must own and control all equity and voting power within the corporation or LLC. The corporation or LLC must also expressly assume all of the franchisee's obligations under the franchise agreement. Even with this transfer, the franchisee remains personally liable under the agreement as if the transfer never occurred.
Transfers of ownership interests in the corporation or LLC are subject to standard transfer conditions. This allows a Focalpoint Coaching franchisee to operate under a corporate structure while retaining full responsibility and control, which can offer certain legal and financial benefits.