Is a Focalpoint Coaching franchisee's conviction of a felony a curable or non-curable default?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE OR OTHER AGREEMENT | franchise may differ materially from any and all of those contained in the Franchise Agreement attached to this Disclosure Document, including reduced Territory and increased fees. | |
| d. Termination by | If we breach Franchise Agreement and an arbitrator determines that we did not cure default after notice from you, or upon your (or your managing owner’s) death or disability (subject to state law). | |
| franchisee | ||
| e. Termination by | Not Applicable. Not Applicable. | |
| franchisor without | ||
| cause | ||
| f. Termination by | Section 14.B | We may terminate your franchise only if you or your owners commit one of several violations. |
| franchisor with | of Franchise | |
| cause | Agreement | |
| g. “Cause” defined- | Section 14.B | You have 72 hours to cure any law, ordinance, |
| curable defaults g. “Cause” defined- | ||
| curable defaults | of Franchise | or regulation regulating the operation of the |
| Agreement | Franchised Business; 10 days to cure monetary defaults and failure to maintain required insurance; 30 days to cure operational defaults and other defaults not listed in (h) below; and 90 days to relocate the Office to a new site if you lose possession of the premises. | |
| h. “Cause” defined- | Non-curable defaults include: misrepresentation in acquiring the franchise; failure to open and operate the Franchised Business within 60 days after Franchise Agreement’s Effective Date; failure to complete training; abandonment; unapproved transfers; conviction of a felony crime or other offense; dishonest or unethical conduct; you, any of your owners, representatives, or employees make any illicit statements, including in an email to our employees, officers, or directors, or in any social media posts, or any other unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, gambling-related, drug-related, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee's conviction of a felony is considered a non-curable default. This means that Focalpoint Coaching has the right to terminate the franchise agreement immediately if a franchisee or their owners are convicted of a felony crime or other offense.
This policy has significant implications for prospective franchisees. Unlike some other defaults that allow a period to rectify the issue, a felony conviction provides no such opportunity. Focalpoint Coaching can proceed with termination without giving the franchisee a chance to correct the situation. This highlights the importance of maintaining a clean legal record for all owners involved in the franchise.
The FDD lists other actions that would be considered non-curable defaults, including misrepresentation in acquiring the franchise, failure to open the business in a timely manner, abandonment of the franchise, and dishonest or unethical conduct. These non-curable defaults are outlined in Section 14.B of the Franchise Agreement.
Prospective Focalpoint Coaching franchisees should carefully review Section 14.B of the Franchise Agreement to fully understand the circumstances that could lead to immediate termination. Understanding these terms is crucial for protecting their investment and ensuring compliance with the franchise agreement.