How can the Focalpoint Coaching franchise system be modified?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisor and its affiliates have expended considerable time and effort in developing a system relating to the establishment and operation of FocalPoint franchised businesses (each a "FocalPoint Franchised Business"), offering business training and consulting to small businesses and professionals (collectively, the "Services") utilizing the Franchise System (as defined below) and specialized products produced or manufactured using the designs developed by Franchisor and its affiliates (the "Proprietary Products"). These Services are provided by FocalPoint franchise owners operating FocalPoint Franchised Businesses, which operate under distinctive methods, procedures, standards and specifications, all of which Franchisor may improve, further develop or otherwise modify from time to time.
Franchisee understands and agrees that any specific ongoing training or advice Franchisor provides does not create an obligation (whether by course of dealing or otherwise) to
continue to provide such specific training or advice, all of which Franchisor may discontinue and modify at any time and from time to time.
C. GENERAL GUIDANCE AND CONSULTATION SERVICES.
EXHIBIT F
STATE ADDENDA AND FRANCHISE AGREEMENT RIDERS
ADDITIONAL DISCLOSURES FOR THE MULTI-STATE FRANCHISE DISCLOSURE DOCUMENT OF FOCALPOINT COACHING, INC.
The following are additional disclosures for the Franchise Disclosure Document of FocalPoint Coaching, Inc. required by various state franchise laws. Each provision of these additional disclosures will not apply unless, with respect to that provision, the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently without reference to these additional disclosures.
CALIFORNIA
- The following paragraph is added at the end of Item 3 of the Disclosure Document:
Except as disclosed above, neither we nor any person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, 15 U.S.C.A. Section 78a et seq., suspending or expelling such person from membership in such association or exchange.
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- OUR WEBSITE, www.focalpointcoaching.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
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- The Department has determined that either the franchisor has not demonstrated it is adequately capitalized or that the franchisor must rely on franchise fees to fund operations. The Commissioner has imposed a financial assurance condition and franchisor has elected to defer franchisee's payment of initial fees to franchisor until franchisor has satisfied all of its preopening obligations and franchisee has commenced doing business.
Therefore, the following paragraph is added to the end of Item 5 of the Disclosure Document:
Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.
- Background. We and you are parties to that certain Franchise Agreement that has been signed at the same time as the signing of this Rider (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Washington; and/or (b) you are a resident of Washington; and/or (c) any of the offering or sales activity relating to the Franchise Agreement occurred in Washington.
2. Acknowledgments.
- a. The following Sections are hereby deleted in their entirety from the Franchise Agreement: 1.B(2), 1.B(3), 1.B(6), 1.B(7), 1.B(11) and 1.B(13).
- b. Section 1.B(9) of the Franchise Agreement is revised to read as follows:
- (9) That this Agreement's terms and covenants are reasonably necessary for Franchisor to maintain Franchisor's high standards of quality and service, as well as the uniformity of those standards at each FocalPoint Franchised Business, and to protect and preserve the goodwill of the Marks.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchise system can be modified in several ways, primarily through amendments and addenda to the standard Franchise Agreement to comply with state laws. These modifications ensure that the franchise operations align with specific state regulations, offering additional protections or alterations to the standard agreement terms. These changes are documented in state-specific addenda and riders included as exhibits to the FDD.
For instance, the FDD includes additional disclosures for states like California, where specific paragraphs are added to items in the disclosure document to comply with the California Franchise Investment Law. These additions may address issues such as website review requirements or the deferral of initial fee payments until pre-opening obligations are met and the franchisee commences business. Similarly, for franchisees operating in or residing in Washington, a rider is added to the Franchise Agreement, deleting certain sections and revising others to comply with the Washington Franchise Investment Protection Act.
Furthermore, the FDD indicates that ongoing training or advice provided by Focalpoint Coaching does not create an obligation to continue providing such training, and Focalpoint Coaching may discontinue and modify it at any time. This suggests that Focalpoint Coaching retains the flexibility to adapt its training programs and support services as needed. These modifications are crucial for maintaining the uniformity and quality standards of Focalpoint Coaching franchises while adhering to the legal requirements of different states, ensuring that franchisees receive the necessary protections and disclosures as mandated by law.