If the Franchisee's interest in the Focalpoint Coaching agreement is to be transferred after death or disability, what is the maximum timeframe allowed for completing the transfer?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
liability company are subject to the conditions of Subsection 12.C above that otherwise apply to non-controlling transfers. Franchisee agrees to remain personally liable under this Agreement as if the transfer to the corporation or limited liability company did not occur.
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 Focalpoint Coaching's 2025 Franchise Disclosure Document, in the event of the death or disability of the franchisee or their managing owner, their representative has options regarding the franchise agreement. The representative can either transfer the franchisee's interest in the agreement to a third party, which could include heirs or beneficiaries, or terminate the agreement by providing written notice to Focalpoint Coaching.
If the representative chooses to transfer the franchisee's interest, the transfer must be completed within a reasonable timeframe, specifically not exceeding twelve months from the date of death or disability. This transfer is also subject to all other terms and conditions outlined in Section 12 of the agreement, which likely cover various aspects of the transfer process, such as obtaining Focalpoint Coaching's approval and meeting certain qualifications. Failure to complete the transfer within the specified 12-month period constitutes a breach of the franchise agreement.
The term "disability" is defined as a mental or physical condition that prevents the franchisee or managing owner from effectively managing and operating the Focalpoint Coaching franchised business. This definition provides clarity on what circumstances would trigger the transfer or termination options. This clause ensures that in unforeseen circumstances, there is a clear process for handling the franchise, protecting both the interests of the franchisee's estate and Focalpoint Coaching.