For a Focalpoint Coaching franchise, what restrictions apply to the issuance and transfer of ownership interests in the franchisee?

ice.

C. CONDITIONS FOR APPROVAL OF TRANSFER.

If Franchisee (and Franchisee's owners) is fully complying with this Agreement, then, subject to the other provisions of this Section 12, Franchisor will approve a transfer that meets all of the requirements in this Subsection 12.C.

If Franchisee is an entity, Franchisee's owners may transfer a non-controlling ownership interest in Franchisee or Franchisee's owners (determined as of the date on which the proposed transfer will occur) if: (1) the proposed transferee and its direct and indirect owners (if the transferee is an Entity) are of good character and otherwise meet Franchisor's then applicable standards for FocalPoint Franchised Business franchise owners (including no ownership interest in or performance of services for a Competitive Business, unless Franchisor provides prior written consent in its sole discretion); and (2) Franchisee gives Franchisor prior written notice of the transfer.

For any other proposed transfer (including a transfer of this Agreement, a transfer of a controlling ownership interest in Franchisee or one of Franchisee's owners, or a transfer which is one of a series of transfers (regardless of the time period over which these transfers take place) which in the aggregate transfer this Agreement or a controlling ownership interest in Franchisee or one of Franchisee's owners) all of the following conditions must be met before or concurrently with the effective date of the transfer:

• (1) the transferee has sufficient business experience, aptitude, and financial resources to operate the Franchised Business;
• (2) Franchisee has paid all Royalties, Fund contributions, and other amounts owed to Franchisor, Franchisor's affiliates, and third party vendors; has submitted all required reports and statements; and has not violated any provision of this Agreement or any other agreement with Franchisor during both the sixty (60) day period before Franchisee requested Franchisor's consent to the transfer and the period between Franchisee's request and the effective date of the transfer;
• (3) neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business (unless Franchisor provides prior written consent in its sole discretion);
• (4) the transferee (or its managing owner) satisfactorily completes Franchisor's training program at the transferee's expense, and pays to Franchisor the then current training charge, plus any applicable taxes;
• (5) if the Office is in a non-residential location, Franchisee's landlord allows Franchisee to transfer the lease or sublease the premises where the Office is located to the transferee;

Source: Item 22 — Contracts (FDD pages 56–57)