Does Focalpoint Coaching consider the Brand Damages a penalty for early termination, or something else?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
penalty for early termination but instead reasonable compensation to Franchisor for Franchisee's failure to perform under this Agreement during the remainder of the Term.
B. MARKS.
When this Agreement expires or is terminated:
(1) Franchisee may not directly or indirectly at any time or in any manner (except with other FocalPoint Franchised Businesses Franchisee owns and operates) identify itself or any business as a current or former FocalPoint Franchised Business or as one of Franchisor's current or former 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 use for any purpose any trade name, trade or service mark, or other commercial symbol that indicates or suggests a connection or association with Franchisor;
(2) Franchisee agrees to discontinue the use of any Website and social media used in connection with the Franchised Business or otherwise referring to the Marks or FocalPoint Franchised Businesses;
(3) Franchisee agrees, at Franchisee's expense, to take the action required to cancel all fictitious or assumed name or equivalent registrations relating to Franchisee's use of any Mark;
(4) Franchisee agrees, at Franchisee's expense, to deliver to Franchisor within thirty (30) days all signs, sign-faces, sign-cabinets, marketing materials, forms, and other materials containing any Mark or otherwise identifying or relating to a FocalPoint Franchised Business that Franchisor requests and allow Franchisor, without liability to Franchisee or third parties for trespass or any other claim, to enter the Office and remove these items and to remove these items from any vehicles used by the Franchised Business;
(5) Franchisee agrees promptly and at Franchisee's own expense to make the alterations Franchisor specifies in Franchisor's Operations Manual (or otherwise) to distinguish the Office and the Franchised Business clearly from its former appearance and from other FocalPoint Franchised Businesses in order to prevent public confusion;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, Brand Damages are not considered a penalty for early termination. Instead, Focalpoint Coaching views them as reasonable compensation to the company for the franchisee's failure to perform under the agreement for the remainder of the term.
If a franchisee terminates the agreement before its full term, Focalpoint Coaching states that it will incur substantial damages. These damages include, but are not limited to, lost royalties, lost profits, loss of goodwill and damage to the marks and reputation, lost opportunities, travel and personnel costs, expenses that Focalpoint Coaching may incur in developing or finding another franchise owner to establish and operate a new Focalpoint Coaching franchise in the territory, and any other lost payments or benefits Focalpoint Coaching would have received for the balance of the term after the effective date of termination.
The franchisee's obligation to pay Brand Damages resulting from early termination is in addition to any other amounts due as of the date of termination and compliance with all sections of the agreement. This means that a franchisee who terminates early could face significant financial repercussions beyond just the immediate costs of closing the business.