Can a Focalpoint Coaching franchisee face competition from outlets that Focalpoint Coaching owns?
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 various sources, including outlets that Focalpoint Coaching owns. The FDD clearly states that the franchisee will not receive an exclusive territory.
The document specifies that Focalpoint Coaching and its affiliates retain the right to operate or grant franchises for other Focalpoint Coaching businesses within the franchisee's territory. This means that Focalpoint Coaching could potentially establish a competing Focalpoint Coaching franchise within the same area as an existing franchisee.
Furthermore, Focalpoint Coaching retains extensive rights regarding other business activities, including establishing businesses offering similar or dissimilar products and 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 the franchisee's office, without any compensation to the franchisee. While Focalpoint Coaching states they do not currently have plans to operate or franchise a business under a different trademark that sells similar goods or services, they retain the right to do so.