What happens if a Focalpoint Coaching franchisee fails to maintain the specified insurance?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails or refuses to obtain and maintain the insurance Franchisor specifies, in addition to Franchisor's other remedies, Franchisor may (but need not) obtain such insurance for Franchisee and the Franchised Business on Franchisee's behalf, in which event Franchisee shall cooperate with Franchisor and reimburse Franchisor for all premiums, costs and expenses Franchisor incurs in obtaining and maintaining the insurance, plus a reasonable fee for Franchisor's time incurred in obtaining such insurance. If Franchisor obtains such insurance for Franchisee and the Franchised Business on Franchisee's behalf, Franchisee must furnish all information necessary to obtain and maintain such insurance within five (5) days of Franchisor's request.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the insurance coverage that Focalpoint Coaching requires, Focalpoint Coaching has the option, but not the obligation, to obtain the necessary insurance on behalf of the franchisee.
If Focalpoint Coaching chooses to secure insurance for the franchisee, the franchisee is required to cooperate fully and reimburse Focalpoint Coaching for all costs associated with obtaining and maintaining the insurance. This reimbursement includes the insurance premiums, any additional costs incurred by Focalpoint Coaching, and a reasonable fee to compensate Focalpoint Coaching for their time spent arranging the insurance.
The franchisee must also provide all necessary information to Focalpoint Coaching within five days of the request to facilitate the insurance procurement. This ensures that Focalpoint Coaching can efficiently obtain and maintain the required insurance coverage for the Franchised Business, mitigating potential risks and ensuring compliance with the franchise agreement.