What constitutes a 'controlling ownership interest' in a Focalpoint Coaching franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
References to a "controlling ownership interest" in Franchisee or one of Franchisee's owners (if an Entity) mean the percent of the voting shares or other voting rights that results from dividing one hundred percent (100%) of the ownership interests by the number of owners. In the case of a proposed transfer of an ownership interest in Franchisee or one of Franchisee's owners, the determination of whether a "controlling ownership interest" is involved must be made as of both immediately before and immediately after the proposed transfer to see if a "controlling ownership interest" will be transferred (because of the number of owners before the proposed transfer) or will be deemed to have been transferred (because of the number of owners after the proposed transfer).
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a 'controlling ownership interest' in the franchise or one of its owners (if an entity) is determined by dividing 100% of the ownership interests by the number of owners. The resulting percentage of voting shares or other voting rights defines the controlling interest.
For prospective Focalpoint Coaching franchisees, this definition is crucial when considering transferring ownership. The FDD stipulates that when a transfer of ownership interest is proposed, the determination of whether it constitutes a 'controlling ownership interest' must be assessed both immediately before and after the proposed transfer. This dual assessment ensures that the transfer doesn't inadvertently shift control due to changes in the number of owners.
This clause is designed to protect Focalpoint Coaching's interests by ensuring that any significant changes in ownership are subject to their approval, maintaining the integrity and standards of the franchise system. Franchisees need to be aware of this calculation, especially if they plan to bring in partners or sell portions of their business, as any transfer deemed 'controlling' will trigger additional scrutiny and requirements from Focalpoint Coaching.