What constitutes 'substantial compliance' with the Focalpoint Coaching Franchise Agreement for the purpose of acquiring a successor franchise?
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 Ro
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 to acquire a successor franchise hinges on several factors related to their compliance with the existing Franchise Agreement. Specifically, 'substantial compliance' is a key determinant.
To be eligible for a successor franchise, the franchisee (and each of their owners) must have substantially complied with the Franchise Agreement throughout its term. Additionally, on both the date the franchisee notifies Focalpoint Coaching of their intent to acquire a successor franchise and the date the successor franchise term would begin, the franchisee (and their owners) must be in full compliance with the Agreement and all System Standards.
Furthermore, if the Focalpoint Coaching office is in a non-residential location, the franchisee must either maintain possession of the office and agree to remodel/expand it to meet current System Standards, or secure a substitute office that meets those standards. Meeting these conditions gives the franchisee the option to acquire a successor franchise term of seven years, provided they also comply with Focalpoint Coaching's other renewal terms and conditions, sign the current franchise agreement (modified for a successor franchise), and pay a renewal fee of $5,000 plus applicable taxes.