Does the Focalpoint Coaching franchisor need to provide a cure period for all termination reasons?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
If Franchisee and Franchisee's owners are fully complying with this Agreement and Franchisor materially fails to comply with this Agreement and does not correct the failure within thirty (30) days after Franchisee delivers to Franchisor written notice of the material failure to Franchisor or, if Franchisor cannot correct the failure within thirty (30) days, gives Franchisee within thirty (30) days after Franchisee's notice reasonable evidence of Franchisor's effort to correct the failure within a reasonable time (which may extend beyond that thirty (30) days), Franchisee may terminate this Agreement effective an additional thirty (30) after Franchisee delivers to Franchisor written notice of termination. (The time period during which Franchisor may cure any alleged material failure to comply with this Agreement after Franchisee's delivery of notice is called the "Cure Period.") However, if Franchisor sends Franchisee written notice during the Cure Period indicating that either (1) Franchisor does not agree that Franchisor has materially failed to comply with this Agreement or (2) Franchisor has fully corrected the failure, then Franchisee may not terminate this Agreement**.** If Franchisee disagrees with Franchisor's position and still wishes to terminate this Agreement, Franchisee must commence an arbitration proceeding seeking a declaration of Franchisee's right to terminate this Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisor, FocalPoint Coaching Inc., generally provides a cure period before termination, but this is subject to certain exceptions, particularly for franchisees governed by Minnesota law.
Specifically, for franchises governed by Minnesota law, FocalPoint Coaching will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which typically require that a franchisee be given 90 days' notice of termination, with 60 days to cure, except in certain specified cases. They also require 180 days' notice of non-renewal of the Franchise Agreement.
Outside of Minnesota, if a Focalpoint Coaching franchisee is in full compliance with the Franchise Agreement, and the franchisor materially fails to comply with the agreement, the franchisee must provide written notice of the failure, and Focalpoint Coaching has thirty days to correct the failure. If Focalpoint Coaching cannot correct the failure within thirty days, they must provide reasonable evidence of their effort to correct the failure within a reasonable time, which may extend beyond the initial thirty days. If Focalpoint Coaching indicates they do not agree they have materially failed to comply or that they have fully corrected the failure, the franchisee must commence an arbitration proceeding to seek a declaration of their right to terminate the agreement.