Does Focalpoint Coaching have to compensate a franchisee for expenses of promoting a modified or substitute trademark or service mark?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If, in Franchisor's sole judgment, it becomes advisable at any time for Franchisor and/or Franchisee to modify or discontinue using any Mark and/or to use one or more additional or substitute trade or service marks, Franchisee agrees to comply with Franchisor's directions within a reasonable time after receiving notice. Franchisor need not reimburse Franchisee for Franchisee's direct expenses of changing the Franchised Business' signs, for any loss of revenue due to any modified or discontinued Mark, any loss of goodwill associated with any modified or discontinued Mark, or for Franchisee's expenses of promoting a modified or substitute trademark or service mark.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, Focalpoint Coaching is not required to reimburse a franchisee for expenses incurred when promoting a modified or substitute trademark or service mark. This includes the direct expenses of changing the Franchised Business' signs, any loss of revenue due to the modified or discontinued mark, any loss of goodwill associated with the modified or discontinued mark, or the franchisee's expenses of promoting a modified or substitute trademark or service mark.
This policy means that if Focalpoint Coaching decides to change its branding or trademarks, franchisees will bear the financial burden of updating their business's signage, marketing materials, and promotional efforts to align with the new branding. This could potentially involve significant costs for the franchisee, depending on the extent of the changes and the scope of their marketing activities.
Focalpoint Coaching retains the right to modify or discontinue any mark at any time and for any reason they deem appropriate. Franchisees are obligated to comply with Focalpoint Coaching's directions regarding these changes. This clause underscores the importance of a franchisee understanding that the goodwill associated with the Focalpoint Coaching brand ultimately belongs to the franchisor, and changes to branding are at the franchisor's discretion, with the franchisee bearing the costs of implementation.