Does Focalpoint Coaching need to participate in a franchisee's defense if a copyright proceeding occurs?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
We need not protect or defend copyrights, although we intend to do so if in the system's best interests. We may control any action we choose to bring, even if you voluntarily bring the matter to our attention. We need not participate in your defense and/or indemnify you for damages or expenses in a proceeding involving a copyright.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 40–42)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching is not required to participate in a franchisee's defense or indemnify them for damages or expenses if a copyright proceeding occurs. However, Focalpoint Coaching states that it intends to protect and defend copyrights if it is in the best interest of the Focalpoint Coaching system. Focalpoint Coaching retains control over any legal action it chooses to pursue, even if the franchisee brings the matter to their attention.
This means that if a Focalpoint Coaching franchisee faces a copyright infringement claim related to materials used in their business, Focalpoint Coaching is not obligated to provide legal assistance or cover any resulting costs. The franchisee would likely be responsible for their own legal defense and any associated damages.
While Focalpoint Coaching may choose to get involved in a copyright dispute if it believes it is in the best interest of the franchise system, the franchisee cannot rely on this support. It is crucial for prospective franchisees to understand this lack of mandatory support and factor it into their risk assessment and business planning. Franchisees should consider obtaining their own legal counsel and insurance to protect themselves against potential copyright claims.