What is the deadline for Focalpoint Coaching to exercise its right of first refusal after receiving the offer from the franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, by written notice delivered to Franchisee or Franchisee's selling owner(s) within thirty (30) days after Franchisor receives both an exact copy of the offer and all other information Franchisor requests, elect to purchase the interest offered for the price and on the terms and conditions contained in the offer, provided that:
- (1) Franchisor may substitute cash for any form of payment proposed in the offer (such as ownership interests in a privately-held entity);
- (2) Franchisor's credit will be deemed equal to the credit of any proposed buyer (meaning that, if the proposed consideration includes promissory notes, Franchisor or Franchisor's designee may provide promissory notes with the same terms as those offered by the proposed buyer);
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee decides to sell their interest in the franchise, they must first obtain a bona fide, executed written offer from a potential buyer and provide a copy to Focalpoint Coaching. This offer must include payment terms and financing details, along with an earnest money deposit of at least five percent (5%) of the offering price.
Focalpoint Coaching then has thirty (30) days from the date they receive both the offer and any other requested information to notify the franchisee in writing if they wish to purchase the interest themselves. If Focalpoint Coaching decides to exercise its right of first refusal, it can match the terms of the offer, with some exceptions.
Specifically, Focalpoint Coaching can substitute cash for any other form of payment proposed in the offer, such as ownership interests in a privately-held entity. Additionally, Focalpoint Coaching's credit will be considered equal to the credit of any proposed buyer, allowing them to provide promissory notes with the same terms as those offered by the buyer. This right of first refusal ensures that Focalpoint Coaching retains control over who becomes a franchisee within their system.