If remodeling, expansion, improvements, or modifications are required to bring a Focalpoint Coaching franchised business into compliance with system standards, what will be described?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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13. EXPIRATION OF THIS AGREEMENT.
A. FRANCHISEE'S RIGHT TO ACQUIRE A SUCCESSOR FRANCHISE.
If Franchisee meets certain conditions, then Franchisee will have the option to acquire one (1) successor franchise term for seven (7) years. The qualifications and conditions for the successor term are described below.
When this Agreement expires:
- (1) if Franchisee (and each of Franchisee's owners) has substantially complied with this Agreement during its term; and
- (2) if Franchisee (and each of Franchisee's owners) is, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise (as provided in Subsection 13.B below) and on the date on which the term of the successor franchise would commence, in full compliance with this Agreement and all System Standards; and
- (3) provided that if the Office is located in a non-residential location, (a) Franchisee maintains possession of and agrees (regardless of cost) to remodel and/or expand the Office, add or replace Services, vehicles used by the Franchised Business, Operating Assets and/or Proprietary Products, and otherwise modify the Franchised Business as Franchisor requires to comply with System Standards then applicable for new FocalPoint Franchised Businesses, or (b) at Franchisee's option, Franchisee secures a substitute office that Franchisee approves and Franchisee develops that office according to System Standards then applicable for FocalPoint Franchised Businesses,
then Franchisee has the option to acquire a successor franchise term of seven (7) years commencing immediately upon the expiration of this Agreement if Franchisee complies with Franchisor's terms and conditions of renewal under this Agreement. Franchisee agrees to sign the form of franchise agreement Franchisor then uses to grant franchises for FocalPoint Franchised Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which, except for the Territory (which will remain the same), may contain provisions that differ materially from any and all of those contained in this Agreement, including the amount of the Royalty and Fund Contributions. Franchisee shall pay to Franchisor a renewal fee equal to Five Thousand Dollars ($5,000), plus applicable taxes, for a successor franchise.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, franchisees may be required to remodel, expand, or modify their franchised business to comply with the then-current System Standards if they elect to acquire a successor franchise term. Specifically, if the Focalpoint Coaching office is in a non-residential location, the franchisee must maintain possession of the office and agree to remodel or expand it, add or replace services, vehicles, operating assets, or proprietary products, and otherwise modify the franchised business as required by Focalpoint Coaching to meet the System Standards applicable to new franchises at that time. Alternatively, the franchisee can secure a substitute office that Focalpoint Coaching approves and develop that office according to the System Standards for new Focalpoint Coaching franchises.
These modifications and improvements are essential for franchisees seeking to renew their franchise agreement. The FDD states that substantial compliance with the existing agreement and adherence to all System Standards are prerequisites for acquiring a successor franchise. This ensures that all Focalpoint Coaching franchises maintain a consistent quality and standard, which is critical for attracting and retaining clients.
The franchisee bears the financial responsibility for these changes. The FDD emphasizes that the franchisee must cover all expenses associated with developing the office, including securing financing, obtaining permits and licenses, decorating according to approved plans, and purchasing or leasing necessary assets. This obligation to invest additional capital in the franchised business to meet evolving System Standards is a significant consideration for prospective franchisees. Franchisees should be prepared for potential costs associated with keeping their business aligned with Focalpoint Coaching's standards, especially when approaching the renewal of their franchise agreement.