Does the Focalpoint Coaching franchisee have the right to manage the day-to-day operations of the Franchised Business?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must keep Franchisor informed at all times of the identity of any supervisory employee(s) acting as the Business Manager or other assistant manager(s) of the Franchised Business. Franchisee (or Franchisee's Managing Owner) and/or the Business Manager must devote full time and efforts to the management and supervision of the Franchised Business. If Franchisee (or Franchisee's Managing Owner) owns more than one FocalPoint Franchised Business, each FocalPoint Franchised Business must be under the direct supervision of a business manager Franchisor has approved and who has completed Franchisor's training programs. Franchisee (or Franchisee's Managing Owner) is solely responsible for all employment decisions for the Franchised Business, including hiring, firing, remuneration, personnel policies, training, benefits, and maintaining supervision and discipline, regardless of whether Franchisee received advice from Franchisor on any of these subjects.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, the franchisee, or the Managing Owner if the franchisee is an entity, is required to devote full time and effort to the management and supervision of the Franchised Business. Alternatively, a franchisee can designate a Business Manager to manage the day-to-day operations. However, Focalpoint Coaching must approve the Business Manager, and the Business Manager must complete Focalpoint Coaching's training programs. If a franchisee owns more than one Focalpoint Coaching Franchised Business, each business must be under the direct supervision of an approved business manager who has completed the required training.
The Focalpoint Coaching franchisee has the sole responsibility for all employment decisions related to the Franchised Business. This includes hiring, firing, determining remuneration, setting personnel policies, providing training, managing benefits, and maintaining supervision and discipline. This responsibility remains with the franchisee regardless of whether they receive advice from Focalpoint Coaching on these matters.
This arrangement gives the Focalpoint Coaching franchisee significant control over the operational aspects of their business, but it also places a substantial management burden on them. If the franchisee chooses to delegate management responsibilities to a Business Manager, they must ensure that the Business Manager meets Focalpoint Coaching's approval and training requirements. The franchisee retains ultimate responsibility for employment-related decisions, highlighting the importance of developing strong HR practices.