Can Focalpoint Coaching grant others the right to operate Focalpoint Franchised Businesses regardless of proximity to the franchisee's office?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Franchisor deems appropriate and regardless of proximity to the Office and the Franchised Business' Territory;
- (6) the right to operate, and to grant others the right to operate FocalPoint Franchised Businesses at "Non-Traditional Sites" within and outside the Territory on any terms and conditions Franchisor deems appropriate. "Non-Traditional Sites" are sites that generate customer traffic flow which is independent from the general customer traffic flow of the surrounding area, including, without limitation, military bases, major industrial or office complexes, hotels, hospitals and school campuses;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching retains specific rights regarding the operation of Focalpoint Franchised Businesses. Focalpoint Coaching has the right to grant others the right to operate Focalpoint Franchised Businesses located anywhere, whether inside or outside a franchisee's territory. This can be done under any terms and conditions that Focalpoint Coaching deems appropriate, and regardless of how close the other franchised business is to the franchisee's office and territory. This condition is part of the rights that Focalpoint Coaching reserves for itself and its affiliates.
This means that a Focalpoint Coaching franchisee's territory is non-exclusive, and they may face competition from other Focalpoint Coaching franchises, even within their own territory. Focalpoint Coaching also retains the right to operate Focalpoint Franchised Businesses at "Non-Traditional Sites" both within and outside the franchisee's territory, under any terms they deem appropriate. Non-Traditional Sites are defined as locations that have their own customer traffic flow, independent of the surrounding area, such as military bases, office complexes, hotels, hospitals, and school campuses.
This lack of territorial exclusivity is a significant factor for potential franchisees to consider. While a franchisee is required to advertise and solicit clients only within their designated territory, Focalpoint Coaching can establish other franchises nearby. This could impact a franchisee's potential market share and revenue. It is important for prospective franchisees to fully understand the implications of these reserved rights and how they might affect their business operations and profitability within their territory.