If the transferee of a Focalpoint Coaching franchise is an entity, what must be true of its owners?
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.
For any other proposed transfer (including a transfer of this Agreement, a transfer of a controlling ownership interest in Franchisee or one of Franchisee's owners, or a transfer which is one of a series of transfers (regardless of the time period over which these transfers take place) which in the aggregate transfer this Agreement or a controlling ownership interest in Franchisee or one of Franchisee's owners) all of the following conditions must be met before or concurrently with the effective date 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 and its owners transfer a non-controlling ownership interest, the proposed transferee and its direct and indirect owners (if the transferee is an entity) must meet certain conditions. Specifically, these owners must be of good character and meet Focalpoint Coaching's standards for franchise owners.
These standards include not having an ownership interest in or performing services for a competitive business unless Focalpoint Coaching provides prior written consent, which it may grant or deny at its sole discretion. Additionally, the franchisee must provide Focalpoint Coaching with prior written notice of the transfer.
For any other proposed transfer, such as a transfer of the Franchise Agreement itself or a transfer of a controlling ownership interest in the franchisee or one of the franchisee's owners, additional conditions must be met before or concurrently with the effective date of the transfer. This ensures that Focalpoint Coaching maintains control over who operates its franchises and that all owners meet its standards.