If Focalpoint Coaching is acquired by another business, does that business have to be in the same territory?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) the right to acquire the assets or ownership interests of one or more businesses providing products and services the same as or similar to those provided at FocalPoint Franchised Businesses, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Territory); and
- (8) the right to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at FocalPoint Franchised Businesses, or by another business, even if such business operates, franchises and/or licenses competitive businesses in the Territory.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the right to be acquired by another business, even if that business operates, franchises, and/or licenses competitive businesses in the franchisee's territory. This means that a potential franchisee could face competition from a business that acquires Focalpoint Coaching, even if that business already has a presence in the franchisee's territory.
This clause protects Focalpoint Coaching by allowing it to pursue acquisition opportunities that may be beneficial to the brand as a whole, regardless of the impact on individual franchisees' territories. It also provides flexibility for the future direction of the Focalpoint Coaching franchise system.
For a prospective franchisee, this highlights the importance of understanding the competitive landscape and potential for increased competition in their territory. While Focalpoint Coaching grants a territory, it is not exclusive, and the franchisor retains significant rights to operate or allow others to operate similar businesses, even within that territory. This is a fairly standard practice in franchising, as franchisors need to maintain flexibility to grow and adapt their business model.