Besides the Franchisor and Franchisee, who else is the Focalpoint Coaching agreement binding upon?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is at any time a corporation, limited liability company, general or limited partnership or other form of business entity (each, an "Entity"), Franchisee agrees and represents that:
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.
(13) Franchisee and Franchisee's transferring owners will not directly or indirectly at any time or in any manner (except with respect to other FocalPoint Franchised Businesses Franchisee owns and operates) identify itself or Franchisee's transferring owners or any business as a current or former FocalPoint Franchised Business or as one of Franchisor's franchise owners; use any Mark, any colorable imitation of a Mark, or other indicia of a FocalPoint Franchised Business in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark, or other commercial symbol that suggests or indicates a connection or association with Franchisor.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, general or limited partnership, or other form of business entity, the agreement is also binding upon that entity. In cases where the franchisee transfers the agreement to a corporation or limited liability company, the franchisee remains personally liable under the agreement, even after the transfer.
Additionally, the FDD states that in the event of a transfer of the Focalpoint Coaching franchise, the transferring owners are also bound by certain restrictions. Specifically, they cannot identify themselves or any business as a current or former Focalpoint Coaching franchised business, use any marks associated with Focalpoint Coaching, or utilize any trade names or commercial symbols that suggest a connection with the franchisor.
These provisions ensure that Focalpoint Coaching maintains control over its brand and system, even in cases of transfer or changes in the franchisee's business structure. Prospective franchisees should carefully consider these obligations and restrictions, especially if they plan to operate the franchise through a business entity or anticipate transferring ownership in the future.