Can a Focalpoint Coaching franchisee face competition from other Focalpoint Coaching franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
You will operate the Franchised Business within a specific Territory that we first must approve. You will not receive an exclusive territory. You may face competition from other FocalPoint Franchised Business franchise owners, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may operate the Franchised Business only within the approved Territory and may not relocate the Office without our approval. We will describe the Territory in the Franchise Agreement before you sign it. We will determine the size and boundaries of the Territory in our discretion, based upon factors including population density, character of neighborhood, location and number of competing businesses and other factors. While there is no minimum territory size, we typically will define a territory to include approximately 100,000 people (residents and/or workers). You have no options, rights of first refusal, or similar rights to acquire additional franchises within the Territory or in contiguous territories.
We and our affiliates may operate or grant a franchise for the operation of another FocalPoint Franchised Business from an Office located within the Territory during the term of the Franchise Agreement. We and our affiliates retain all rights with respect to FocalPoint Franchised Businesses, the Marks, the sale of identical, similar or dissimilar products and services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
- (1) the right to operate, and to grant others the right to operate FocalPoint Franchised Businesses located anywhere inside or outside the Territory under any terms and conditions we deem appropriate and regardless of proximity to the Office and the Franchised Business's Territory;
- (2) the right to establish and operate, and to grant to others the right to establish and operate businesses offering similar or dissimilar products and services
Source: Item 12 — Territory (FDD pages 36–38)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee may face competition from other Focalpoint Coaching franchisees. The FDD clearly states that the franchise agreement does not grant an exclusive territory. As such, Focalpoint Coaching retains the right to operate or franchise other Focalpoint Coaching businesses, even within a franchisee's territory. This means that a Focalpoint Coaching franchisee could face direct competition from another franchisee operating nearby.
This lack of an exclusive territory is a significant factor for potential franchisees to consider. While Focalpoint Coaching typically defines a territory to include approximately 100,000 people, the franchisor has the right to modify territory sizes and boundaries at their discretion. The franchisee has no rights to acquire additional franchises within their territory or adjacent territories, further limiting their ability to expand and protect their market share.
Furthermore, Focalpoint Coaching retains extensive rights to operate or franchise other businesses, including those offering similar services, through various channels of distribution, both inside and outside the franchisee's territory. They can also service national accounts regardless of their proximity to a franchisee's office, without any compensation to the franchisee. These retained rights give Focalpoint Coaching considerable flexibility but also expose franchisees to potential competition and reduced market control. A prospective franchisee should carefully evaluate the potential impact of this non-exclusive territory on their business prospects and revenue potential.