What happens if a Focalpoint Coaching franchisee is in default during the 60-day period before a transfer request?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE | |||
| OR OTHER | |||
| AGREEMENT | |||
| k. “Transfer” by | Section 12.B | Includes transfer of Franchise Agreement, the | |
| franchisee – defined | |||
| of Franchise | Franchised Business (or its profits, loses or | ||
| Agreement | capital appreciation) sale of Franchised | ||
| Business’ assets, and ownership change in you | |||
| or your owners. | |||
| l. Franchisor approval | Section 12.C | No transfer without our prior written consent. No transfer without our prior written consent. | |
| of transfer by | of Franchise | ||
| franchisee | Agreement | ||
| m. Conditions for | m. Conditions for | Section 12.C | New franchise owner qualifies; you pay us, our |
| franchisor approval | |||
| of transfer | |||
| franchisor approval | of Franchise | affiliates, and third party vendors all amounts | |
| of transfer | Agreement | due and submit all required reports; no default | |
| during 60-day period before transfer request or | |||
| during period between request and transfer’s | |||
| proposed effective date; new franchise owner |
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 cannot transfer their franchise if they are in default during the 60-day period before submitting a transfer request. This condition is in place to ensure that the franchise is in good standing before ownership changes.
Specifically, Focalpoint Coaching requires that the franchisee not be in default either during the 60-day period before the transfer request or during the period between the request and the proposed effective date of the transfer. This means that any outstanding financial obligations, operational deficiencies, or breaches of the franchise agreement must be resolved before the transfer can proceed.
This requirement protects Focalpoint Coaching by ensuring that new owners are not immediately burdened with unresolved issues and that the brand's reputation is maintained. For a prospective franchisee looking to sell their business, it is crucial to remain compliant with all terms of the Franchise Agreement and address any defaults promptly to facilitate a smooth transfer process.