What conditions must a Focalpoint Coaching franchisee meet to be eligible for a successor franchise term?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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13. EXPIRATION OF THIS AGREEMENT.
A. FRANCHISEE'S RIGHT TO ACQUIRE A SUCCESSOR FRANCHISE.
If Franchisee meets certain conditions, then Franchisee will have the option to acquire one (1) successor franchise term for seven (7) years. The qualifications and conditions for the successor term are described below.
When this Agreement expires:
- (1) if Franchisee (and each of Franchisee's owners) has substantially complied with this Agreement during its term; and
- (2) if Franchisee (and each of Franchisee's owners) is, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise (as provided in Subsection 13.B below) and on the date on which the term of the successor franchise would commence, in full compliance with this Agreement and all System Standards; and
- (3) provided that if the Office is located in a non-residential location, (a) Franchisee maintains possession of and agrees (regardless of cost) to remodel and/or expand the Office, add or replace Services, vehicles used by the Franchised Business, Operating Assets and/or Proprietary Products, and otherwise modify the Franchised Business as Franchisor requires to comply with System Standards then applicable for new FocalPoint Franchised Businesses, or (b) at Franchisee's option, Franchisee secures a substitute office that Franchisee approves and Franchisee develops that office according to System Standards then applicable for FocalPoint Franchised Businesses,
then Franchisee has the option to acquire a successor franchise term of seven (7) years commencing immediately upon the expiration of this Agreement if Franchisee complies with Franchisor's terms and conditions of renewal under this Agreement. Franchisee agrees to sign the form of franchise agreement Franchisor then uses to grant franchises for FocalPoint Franchised Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which, except for the Territory (which will remain the same), may contain provisions that differ materially from any and all of those contained in this Agreement, including the amount of the Royalty and Fund Contributions. Franchisee shall pay to Franchisor a renewal fee equal to Five Thousand Dollars ($5,000), plus applicable taxes, for a successor franchise. The renewal fee must accompany Franchisee's written notice of Franchisee's election to acquire a successor franchise as provided in Subsection 13.B below.
If Franchisee (and each of Franchisee's owners) is not, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Agreement and all System Standards, Franchisee acknowledges that Franchisor need not grant Franchisee a successor franchise, whether or not Franchisor had, or chose to exercise, the right to terminate this Agreement during its term under Subsection 14.B.
B. GRANT OF A SUCCESSOR FRANCHISE.
Franchisee agrees to give Franchisor written notice of Franchisee's election to acquire a successor franchise no more than one hundred eighty (180) days and no less than ninety (90) days before this Agreement expires. Franchisor agrees to give Franchisee written notice of Franchisor's decision ("Franchisor's Notice"):
(1) to grant Franchisee a successor franchise;
- (2) to grant Franchisee a successor franchise on the condition that Franchisee correct existing deficiencies in Franchisee's operation of the Franchised Business (including with respect to the vehicles used by the Franchised Business);
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee's eligibility for a successor franchise term depends on several factors. The franchisee (and each of their owners) must have substantially complied with the existing agreement during its term. Additionally, on both the date the franchisee notifies Focalpoint Coaching of their intent to acquire a successor franchise and the date the new term would commence, they must be in full compliance with the agreement and all system standards.
If the Focalpoint Coaching office is in a non-residential location, the franchisee must maintain possession and agree to remodel or expand the office, add or replace services, vehicles, operating assets, or proprietary products as required to meet the system standards for new Focalpoint Coaching franchises. Alternatively, the franchisee can secure a substitute office that Focalpoint Coaching approves and develop it according to the then-current system standards. The franchisee must also provide written notice to Focalpoint Coaching of their election to acquire a successor franchise between 90 and 180 days before the current agreement expires.
To finalize the successor franchise, the franchisee must pay a renewal fee of $5,000, plus applicable taxes. They must also sign the franchise agreement form then in use for new Focalpoint Coaching franchises (modified to reflect its status as a successor franchise), which may contain significantly different provisions from the original agreement, except that the territory will remain the same. The franchisee and their owners must also sign Focalpoint Coaching's current form of general release, waiving any claims against Focalpoint Coaching. Failure to sign and deliver these agreements and releases within ten days of receipt will be considered an election not to acquire a successor franchise.