Is failing to pay taxes a cause for termination of a Focalpoint Coaching franchise, and what is the exception?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, failing to pay federal or state income, service, sales, or other taxes when due on the Franchised Business' operation can be grounds for franchise termination. However, there is an exception: if the franchisee is in good faith contesting their liability for these taxes, it will not be considered a cause for termination.

This provision is fairly standard in franchise agreements. Franchisors want to ensure their franchisees operate legally and ethically, and failure to pay taxes can be seen as a serious breach of this expectation. The exception for good-faith disputes is important, as it protects franchisees who have legitimate disagreements with tax authorities and are actively challenging those assessments.

For a prospective Focalpoint Coaching franchisee, this means maintaining meticulous records and ensuring timely tax payments. If a franchisee genuinely believes they do not owe certain taxes, they should formally contest the liability and document their actions to demonstrate good faith. Ignoring tax obligations or attempting to evade taxes could put the franchise agreement at risk.

It is important to note that the FDD excerpt does not specify the process or criteria Focalpoint Coaching uses to determine whether a franchisee is genuinely contesting tax liability in "good faith." A prospective franchisee should seek clarification from Focalpoint Coaching on what documentation or actions would be required to demonstrate a good-faith dispute and avoid potential termination.