If a franchisee defaults, can Focalpoint Coaching suspend the franchisee's right to participate in advertising programs?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
eement; or
- (26) Franchisee (or any of Franchisee's owners) fails to comply with any other provision of this Agreement or any System Standard and does not correct the failure within thirty (30) days after Franchisor delivers written notice of the failure to Franchisee.
C. FRANCHISOR'S ALTERNATE REMEDIES UPON FRANCHISEE'S DEFAULT.
In addition to, and without limiting, Franchisor's other rights and remedies under this Agreement, any other agreement or applicable law, upon the occurrence of any event giving rise to Franchisor's right to terminate this Agreement under the preceding Subsection 14.B, Franchisor may instead elect, at Franchisor's sole option and upon providing Franchisee written notice, to take any or all of
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 defaults on the Franchise Agreement, Focalpoint Coaching has the option to suspend the franchisee's right to participate in advertising programs. Specifically, Focalpoint Coaching can choose to suspend the franchisee's and the franchised business's right to participate in any advertising, marketing, promotional, or public relations programs that Focalpoint Coaching or the Fund provides, authorizes, or administers. This is one of several actions Focalpoint Coaching can take without terminating the agreement entirely.
This means that if a Focalpoint Coaching franchisee fails to meet their obligations under the agreement, in addition to other potential remedies, Focalpoint Coaching can prevent them from benefiting from the system's advertising and marketing efforts. This could significantly impact the franchisee's business, as they would lose access to the promotional support provided by the franchisor. The decision to suspend advertising participation is at Focalpoint Coaching's discretion, providing them with flexibility in addressing franchisee defaults.
This clause is important for prospective franchisees to consider, as it highlights the potential consequences of defaulting on the Franchise Agreement. While it does not automatically lead to termination, the suspension of advertising and marketing support could severely hinder a franchisee's ability to attract and retain clients. Franchisees should ensure they fully understand their obligations and the potential ramifications of non-compliance to avoid such penalties.