If a Focalpoint Coaching franchisee is an entity, can the owners transfer a non-controlling ownership interest?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is an entity, Franchisee's owners may transfer a non-controlling ownership interest in Franchisee or Franchisee's owners (determined as of the date on which the proposed transfer will occur) if: (1) the proposed transferee and its direct and indirect owners (if the transferee is an Entity) are of good character and otherwise meet Franchisor's then applicable standards for FocalPoint Franchised Business franchise owners (including no ownership interest in or performance of services for a Competitive Business, unless Franchisor provides prior written consent in its sole discretion); and (2) Franchisee gives Franchisor prior written notice of the transfer.
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 is an entity, the owners can transfer a non-controlling ownership interest under certain conditions. The franchisee must be in full compliance with the franchise agreement.
The transfer is permissible if the proposed transferee and their owners (if the transferee is also an entity) are of good character and meet Focalpoint Coaching's standards for franchise owners. This includes not having an ownership interest in or performing services for a competitive business without prior written consent from Focalpoint Coaching. The franchisee must also provide Focalpoint Coaching with prior written notice of the transfer.
For any other proposed transfer, such as a transfer of the agreement itself or a controlling ownership interest, additional conditions must be met. These requirements ensure that Focalpoint Coaching maintains control over who is involved in their franchise system and that the brand's standards are upheld. It is important for prospective franchisees to understand these transfer conditions, as failure to comply could result in a breach of the franchise agreement.