When is a Focalpoint Coaching franchisee required to pay brand damages, and what triggers this fee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 6
OTHER FEES
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Submit Required Reports | $75 | As incurred | If you fail to send us the reports required by the Franchise Agreement, we may debit your account this amount on the 5th day of the month following your failure to submit the require reports. |
| Costs and | Will vary under | As incurred | Due when you do not comply with the |
| Attorneys’ Fees | circumstances | Franchise Agreement. | |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all Brand Damages related to the early termination. See Note 6. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us for claims from your Franchised Business’ operation. |
Source: Item 6 — Other Fees (FDD pages 14–20)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee is required to pay brand damages if they terminate the Franchise Agreement before it expires. The amount of these damages will vary depending on the circumstances and are due as incurred.
The FDD specifies that brand damages include all damages, costs, expenses, attorneys' and experts' fees directly or indirectly related to early termination. This includes lost royalties, lost profits, loss of goodwill and damage to Focalpoint Coaching's marks and reputation, lost opportunities, travel and personnel costs, expenses incurred in finding another franchise owner, and any other lost payments or benefits Focalpoint Coaching would have received for the balance of the term of the Franchise Agreement after the effective date of termination.
This means that if a Focalpoint Coaching franchisee decides to end their agreement early, they could face significant financial repercussions. These costs are intended to compensate Focalpoint Coaching for the financial harm caused by the early termination, covering not only immediate losses but also anticipated future revenue and costs associated with finding a replacement franchisee. Prospective franchisees should carefully consider the potential financial impact of early termination before signing the Franchise Agreement.