Is a Focalpoint Coaching franchisee allowed to operate the Franchised Business or provide services outside of the Territory?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Before this Agreement is executed, Franchisor will describe the Territory in Exhibit B. The size of the Territory shall be determined in Franchisor's sole discretion. Franchisee's rights in the Territory during the term of this Agreement are non-exclusive and Franchisee may face competition from Franchisor or other FocalPoint Franchised Businesses. Franchisee must advertise and solicit clients for the Franchised Business only within the Territory. Franchisee may not operate the Franchised Business or provide Services outside of the Territory; provided, however, Franchisee may provide Services to a client outside the Territory if the client (i) is a
personal acquaintance of Franchisee, (ii) was referred to Franchisee, or (iii) resulted from Franchisee's indirect marketing efforts through digital media.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 42–43)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees generally must operate and solicit clients within their assigned territory. However, there are exceptions where a Focalpoint Coaching franchisee may provide services outside of their territory. Specifically, a franchisee can service clients outside their territory if the client is a personal acquaintance, was referred to the franchisee, or resulted from the franchisee's indirect marketing efforts through digital media.
This policy has several implications for prospective Focalpoint Coaching franchisees. While franchisees are expected to focus their efforts within their territory to build a strong local presence, the exceptions allow for some flexibility. Franchisees are not strictly limited by geography and can leverage existing relationships or digital marketing to expand their client base beyond the territory's borders. This could be particularly beneficial in areas where networking and referrals are strong drivers of business.
However, it's important to note that Focalpoint Coaching retains significant rights regarding the brand and territory. Focalpoint Coaching can operate or franchise other businesses, even within a franchisee's territory. They also reserve the right to provide services to national accounts, regardless of location, without compensating the franchisee. This means that while franchisees have some territorial protection, Focalpoint Coaching can still engage in activities that might compete with the franchisee's business, highlighting the non-exclusive nature of the territory.
Therefore, prospective Focalpoint Coaching franchisees should carefully consider the size and demographics of their assigned territory, as well as the potential for competition from Focalpoint Coaching itself or other franchisees. Understanding the exceptions to the territorial restrictions and how they can be leveraged is also crucial for developing a successful business strategy.