Is a Focalpoint Coaching franchisee entitled to compensation from Focalpoint Coaching on account of a national account's business in the franchisee's territory?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) the right to provide, and to grant other the right to provide, Services to national accounts (meaning a client with more than one office in more than one territory) anywhere inside or outside the Territory under any terms and conditions Franchisor deems appropriate and regardless of the client's proximity to the Office. Under such circumstances, Franchisee is not entitled to any compensation from Franchisor on account of the national account's business in the Territory;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee is not entitled to compensation from Focalpoint Coaching for business generated by national accounts within their territory. The FDD defines national accounts as clients with multiple offices across different territories. Focalpoint Coaching retains the right to service these national accounts, regardless of their proximity to a franchisee's office.
This policy has significant implications for prospective franchisees. While franchisees are granted a territory, Focalpoint Coaching reserves the right to operate and grant others the right to operate Focalpoint Coaching businesses both inside and outside the territory. Focalpoint Coaching also retains the right to offer services to national accounts, even within a franchisee's territory, without providing compensation to the franchisee. This means that a significant client within a franchisee's territory could be managed directly by Focalpoint Coaching, potentially impacting the franchisee's revenue.
This arrangement is not uncommon in franchising, particularly in service-based industries where national accounts are a key source of revenue. Franchisors often maintain control over national accounts to ensure consistent service delivery and to leverage economies of scale. However, it's crucial for prospective Focalpoint Coaching franchisees to understand the potential impact on their business and to evaluate the size and importance of national accounts in their target market.
Prospective franchisees should carefully consider the potential for competition from Focalpoint Coaching and other franchisees, as well as the lack of compensation for national account business, when evaluating the Focalpoint Coaching franchise opportunity. It would be prudent to discuss with Focalpoint Coaching the typical number and value of national accounts in a territory to better understand the potential financial impact.