What happens if a Focalpoint Coaching franchisee or owner dies and their interest is transferred by will?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
E. FRANCHISEE'S DEATH OR DISABILITY.
Upon Franchisee's or Franchisee's Managing Owner's death or disability, Franchisee's or the Managing Owner's executor, administrator, conservator, guardian, or other personal representative must either: (i) transfer Franchisee's interest in this Agreement, or the Managing Owner's ownership interest in Franchisee, to a third party (which may be Franchisee's or the Managing Owner's heirs, beneficiaries, or devisees), or (ii) terminate this Agreement by providing written notice to Franchisor. If Franchisee elects to transfer Franchisee's interest in this Agreement or the Managing Owner's ownership interest in Franchisee, whichever is applicable, then that transfer must be completed within a reasonable time, not to exceed twelve (12) months from the date of death or disability, and is subject to all of the terms and conditions in this Section 12. A failure to transfer Franchisee's interest in this Agreement or the Managing Owner's ownership interest in Franchisee within this time period is a breach of this Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, in the event of the death or disability of a franchisee or their managing owner, their executor, administrator, conservator, guardian, or other personal representative has two options. They can either transfer the franchisee's interest in the Franchise Agreement or the managing owner's ownership interest in the franchisee to a third party, which may include heirs, beneficiaries, or devisees, or they can terminate the agreement by providing written notice to Focalpoint Coaching.
If the decision is made to transfer the interest, the transfer must be completed within a reasonable timeframe, not exceeding twelve months from the date of death or disability. This transfer is subject to all the terms and conditions outlined in Section 12 of the Franchise Agreement. Failure to complete the transfer within the specified time frame constitutes a breach of the agreement.
This clause ensures that in unforeseen circumstances like death or disability, there is a clear process defined for the continuation or termination of the Focalpoint Coaching franchise. It provides a limited time frame for the deceased's or disabled owner's representatives to decide on the future of the franchise, balancing the interests of both the franchisee's estate and Focalpoint Coaching. The requirement for the transfer to adhere to the existing terms and conditions ensures brand consistency and operational standards are maintained even during such transitions.