What is included in the definition of 'Brand Damages' that Focalpoint Coaching may charge in the event of early termination?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6/ Brand Damages include all damages, costs, expenses, attorneys' and experts' fees directly or indirectly related to early termination, including lost Royalties, lost profits, loss of goodwill and damage to our Marks and reputation, lost opportunities, travel and personnel costs, expenses that we may incur in finding another franchise owner, and any other lost payments or benefits we would have received for the balance of the term of the Franchise Agreement after the effective date of termination.
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 must pay Focalpoint Coaching 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 broad definition extends to various potential losses Focalpoint Coaching might incur.
Specifically, Brand Damages encompass 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 a franchisee could be responsible for a wide range of costs beyond just the initial franchise fee if they choose to terminate early.