Will Focalpoint Coaching participate in a franchisee's defense or indemnify them in a copyright proceeding?
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 in a copyright infringement proceeding. The FDD states that while Focalpoint Coaching intends to protect and defend its copyrights if it is in the best interest of the franchise system, it is under no obligation to do so. Focalpoint Coaching retains the right to control 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 is sued for copyright infringement related to the use of materials provided by Focalpoint Coaching, the franchisee may be solely responsible for their legal defense and any resulting damages. Focalpoint Coaching is not obligated to provide financial assistance or legal representation in such cases. This could create a significant financial risk for franchisees, as legal battles can be costly.
This approach is not uncommon in franchising. Many franchisors reserve the right, but not the obligation, to defend their trademarks and copyrights. Prospective Focalpoint Coaching franchisees should carefully consider this potential liability and factor it into their assessment of the franchise opportunity. It would be prudent to discuss this issue further with Focalpoint Coaching to understand the circumstances under which they might offer support in a copyright dispute, and to explore options for insurance or other risk mitigation strategies.