What are the potential penalties for non-compliance with the Franchise Agreement for Focalpoint Coaching, considering the costs and attorneys' fees in Item 6 and the potential for damage to their personal and professional reputation?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
is Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights Franchisor or Franchisee has, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of ten (10) days' prior written notice.
Franchisor and Franchisee will not waive or impair any right, power, or option this Agreement reserves (including, without limitation, Franchisor's right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; Franchisor's or Franchisee's failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including, without limitation, any System Standard; Franchisor's waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other FocalPoint Franchised Businesses; the existence of franchise agreements for other FocalPoint Franchised Businesses which contain provisions different from those contained in this Agreement; or Franchisor's acceptance of any payments due from Franchisee after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to Franchisor will be a waiver, compromise, settlement, or accord and satisfaction. Franchisor is authorized to remove any legend or endorsement, which then will have no effect.
Neither Franchisor nor Franchisee will be liable for loss or damage or be in breach of this Agreement if Franchisor's or Franchisee's failure to perform Franchisor's or Franchisee's obligations results from: (1) compliance with the orders, requests, regulations, or recommendations of any federal, state, or municipal government; (2) acts of God; (3) fires, strikes, embargoes, war, acts of terrorism or similar events, or riot; or (4) any other similar event or cause.
What This Means (2025 FDD)
Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisor retains the right to demand strict adherence to every term, condition, and covenant within the Franchise Agreement. This includes the right to declare any breach as a default and subsequently terminate the agreement before its natural expiration. This right is not waived due to any custom, practice, failure to exercise rights, or acceptance of payments after a breach.
The Franchise Agreement outlines specific conditions under which neither Focalpoint Coaching nor the franchisee will be held liable for failure to perform obligations. These conditions include compliance with governmental orders, acts of God, fires, strikes, embargoes, war, acts of terrorism, or similar events. While such events may excuse or extend performance, they do not excuse the payment of amounts owed at the time of the occurrence, or the payment of royalties or fund contributions due afterward.
For franchisees operating in Minnesota, certain protections are in place as required by Minnesota law. Focalpoint Coaching must provide a 90-day notice of termination (with 60 days to cure) and a 180-day notice of non-renewal, except in specific cases. Additionally, Minnesota law ensures that franchisees retain their rights under Minnesota Statutes Chapter 80C, including the right to any procedure, forum, or remedies provided by the laws of the jurisdiction. The FDD also notes addenda for franchisees in Virginia, Illinois and Washington, modifying certain terms of the standard agreement.