What happens if FocalPoint International becomes insolvent regarding the Focalpoint Coaching trademark license agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Tracy and Fraser may also terminate the license agreement if FocalPoint International (i) files a petition of bankruptcy, (ii) is involuntarily placed in bankruptcy proceedings, (iii) comes under control of a receiver, (iv) becomes insolvent, (v) makes assignments for the benefits of creditors of all or part of its assets, (vi) undergoes liquidation or dissolution, or (vii) is unable to pay its debts in the normal course of business. The license agreement cannot be modified without the mutual consent of both parties. If the license agreement terminates or expires, FocalPoint International's license will terminate and FocalPoint Franchised Business franchise owners and FocalPoint AR Business franchise owners will no longer have the right to use the Principal Mark and related FocalPoint materials and intellectual property. No other agreement limits FocalPoint International's right to use or license the Principal Mark.
Source: Item 13 — Trademarks (FDD pages 38–40)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the trademark license agreement between Tracy and Fraser and FocalPoint International can be terminated if FocalPoint International becomes insolvent. Tracy and Fraser, who own the Principal Mark, have the right to terminate the license agreement with FocalPoint International if FocalPoint International becomes insolvent.
If the license agreement between Tracy and Fraser and FocalPoint International terminates, FocalPoint International's license will terminate. Consequently, Focalpoint Coaching franchise owners and FocalPoint AR Business franchise owners will no longer have the right to use the Principal Mark and related FocalPoint materials and intellectual property. This could significantly impact a franchisee's ability to operate their Focalpoint Coaching business, as the brand and associated materials are central to the franchise offering.
This arrangement introduces a level of risk for Focalpoint Coaching franchisees. The continued operation of their franchise is dependent not only on their own performance and compliance with the franchise agreement but also on the financial stability of FocalPoint International and its adherence to the terms of its license agreement with Tracy and Fraser. Prospective franchisees should carefully consider this dependency and assess the potential impact of FocalPoint International's insolvency on their investment and business operations. It would be prudent to investigate FocalPoint International's financial health and business relationship with Tracy and Fraser before investing in a Focalpoint Coaching franchise.