If a Focalpoint Coaching franchisee terminates the Franchise Agreement early, what are they required to pay?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 6
OTHER FEES
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Submit Required Reports | $75 | As incurred | If you fail to send us the reports required by the Franchise Agreement, we may debit your account this amount on the 5th day of the month following your failure to submit the require reports. |
| Costs and | Will vary under | As incurred | Due when you do not comply with the |
| Attorneys’ Fees | circumstances | Franchise Agreement. | |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all Brand Damages related to the early termination. See Note 6. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us for claims from your Franchised Business’ operation. |
Source: Item 6 — Other Fees (FDD pages 14–20)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee terminates the Franchise Agreement before it expires, they are required to pay for all Brand Damages related to the early termination. These Brand Damages can vary in amount depending on the circumstances.
The FDD specifies that Brand Damages include all damages, costs, expenses, attorneys' and experts' fees directly or indirectly related to early termination. This includes lost Royalties, lost profits, loss of goodwill and damage to Focalpoint Coaching's Marks and reputation, lost opportunities, travel and personnel costs, expenses that Focalpoint Coaching may incur in finding another franchise owner, and any other lost payments or benefits Focalpoint Coaching would have received for the balance of the term of the Franchise Agreement after the effective date of termination.
This means that a franchisee considering early termination needs to carefully evaluate the potential financial implications, as the costs could be substantial and cover a wide range of losses suffered by Focalpoint Coaching as a result of the termination. It is important to note that these costs are in addition to any other fees or obligations the franchisee may have under the Franchise Agreement.