What constitutes good cause for immediate termination of the Focalpoint Coaching franchise agreement related to anti-terrorism and anti-corruption compliance?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
19. COMPLIANCE WITH ANTI-TERRORISM AND OTHER LAWS.
Franchisee and Franchisee's owners agree to comply, and to assist Franchisor to the fullest extent possible in Franchisor's efforts to comply, with all applicable legislation, laws, regulations, rules, ordinances, administrative orders, decrees and policies of any court, arbiter, government, governmental agency, department, or similar organization that are in effect from time to time pertaining to: (a) the various anti-terrorism, economic sanctions, and anti-money laundering and narco-trafficking laws, regulations, orders, decrees and guidelines of the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"), (b) the USA PATRIOT Act (Title III of Pub. L. 107-56, signed into law October 26, 2001), as amended, (c) the provisions of United States Executive Order 13224, (d) the U.S. Prevention of Corruption Act 1988, (e) the U. S. Foreign Corrupt Practices Act, 15 U.S.C. Section 78dd-2, (e) relevant multilateral measures such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the UN Convention Against Corruption, (f) bribery and anti-corruption laws, (g) the laws against money laundering, and (h) the laws against facilitating or supporting persons who conspire to commit these and other crimes against any person or government. Franchisee immediately shall notify Franchisor in writing if a potential violation of any of the foregoing legislation, laws, regulations, rules, ordinances, administrative orders, decrees and/or policies has occurred or is suspected to have occurred. Franchisee immediately shall provide Franchisor with copies of any communication to or from any such agency, government, or commission that relates to or affects this Agreement, the Franchised Business, or the Marks. Any failure to comply with this Section by Franchisee or Franchisee's owners, or any blocking of Franchisee's or Franchisee's owners' assets under any of such laws, legislation, regulations, orders, decrees and/or policies shall constitute good cause for immediate termination of this Agreement, as provided in Section 14.B(18) above.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, failure to comply with anti-terrorism and anti-corruption laws constitutes good cause for immediate termination of the franchise agreement. Specifically, if the franchisee or the franchisee's owners fail to comply with Section 19 of the agreement, or if their assets are blocked under any of the specified laws, legislation, regulations, orders, or policies, Focalpoint Coaching has grounds for immediate termination.
This section of the FDD lists various laws, regulations, and policies related to anti-terrorism, economic sanctions, anti-money laundering, narco-trafficking, and anti-corruption. These include but are not limited to the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) regulations, the USA PATRIOT Act, United States Executive Order 13224, the U.S. Prevention of Corruption Act 1988, the U. S. Foreign Corrupt Practices Act, relevant multilateral measures such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the UN Convention Against Corruption, bribery and anti-corruption laws, the laws against money laundering, and the laws against facilitating or supporting persons who conspire to commit these and other crimes against any person or government.
The franchisee is obligated to assist Focalpoint Coaching in complying with these laws and must immediately notify Focalpoint Coaching in writing if a potential violation has occurred or is suspected. Furthermore, the franchisee must provide Focalpoint Coaching with copies of any communication to or from any agency, government, or commission related to the agreement, the franchised business, or the brand's trademarks.
This clause highlights the importance Focalpoint Coaching places on legal and ethical compliance. For a prospective franchisee, this means maintaining meticulous records, implementing robust compliance procedures, and seeking legal counsel to ensure adherence to all applicable laws. Failure to do so could result in the immediate termination of the franchise agreement and the loss of their investment.