Can Focalpoint Coaching's pricing activities be limited to certain geographic areas or subsets of franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisor's affiliates retain all rights with respect to FocalPoint Franchised Businesses, the Marks, the sale of identical, similar or dissimilar products and services, and any other activities Franchisor deems appropriate whenever and wherever Franchisor desires. Specifically, but without limitation, Franchisor reserves the following rights:
- (1) the right to operate, and to grant others the right to operate FocalPoint Franchised Businesses located anywhere inside or outside the Territory under any terms and conditions Franchisor deems appropriate and regardless of proximity to the Office and the Franchised Business' Territory;
- (2) the right to establish and operate, and to grant to others the right to establish and operate businesses offering similar or dissimilar products and services through similar or alternative channels of distribution, inside or outside the Territory under trademarks or service marks other than the Marks and on any terms and conditions Franchisor deems appropriate;
- (3) the right to provide, offer and sell and to grant others the right to provide, offer and sell products and services that are identical or similar to and/or competitive with those products and services provided by FocalPoint Franchised Businesses, whether identified by the Marks or other trademarks or service marks, through alternative distribution channels (including, without limitation, the internet or similar electronic media) both inside and outside the Territory and on any terms and conditions Franchisor deems appropriate;
- (4) the right to establish and operate, and to grant to others the right to establish and operate, businesses offering dissimilar products and services, both inside and outside the Territory under the Marks and on any terms and conditions Franchisor deems appropriate;
- (5) the right to provide, and to grant other the right to provide, Services to national accounts (meaning a client with more than one office in more than one territory) anywhere inside or outside the Territory under any terms and conditions Franchisor deems appropriate and regardless of the client's proximity to the Office. Under such circumstances, Franchisee is not entitled to any compensation from Franchisor on account of the national account's business in the Territory;
- (6) the right to operate, and to grant others the right to operate FocalPoint Franchised Businesses at "Non-Traditional Sites" within and outside the Territory on any terms and conditions Franchisor deems appropriate. "Non-Traditional Sites" are sites that generate customer traffic flow which is independent from the general customer traffic flow of the surrounding area, including, without limitation, military bases, major industrial or office complexes, hotels, hospitals and school campuses;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, Focalpoint Coaching retains significant rights regarding the operation of Focalpoint Coaching businesses, including pricing and service offerings, both inside and outside a franchisee's territory. Specifically, Focalpoint Coaching has the right to operate or grant others the right to operate Focalpoint Coaching franchises anywhere, regardless of proximity to a franchisee's office or territory, under terms and conditions they deem appropriate. This means Focalpoint Coaching is not restricted from offering different pricing or services in different geographic areas, even if it impacts a franchisee's business.
Focalpoint Coaching also reserves the right to establish businesses offering similar or dissimilar products and services through various channels of distribution, both inside and outside a franchisee's territory, under different trademarks or service marks. They can also offer products and services that compete with those of Focalpoint Coaching franchisees through alternative distribution channels like the internet, again without geographic limitations. This broad reservation of rights allows Focalpoint Coaching to adjust its strategies and offerings based on market conditions or other factors, potentially leading to variations in pricing or services across different areas.
Furthermore, Focalpoint Coaching retains the right to provide services to national accounts (clients with multiple offices in different territories) anywhere, under any terms and conditions they deem appropriate, without compensating the franchisee whose territory the national account's business is in. They can also operate Focalpoint Coaching franchises at "Non-Traditional Sites" (like military bases or office complexes) within or outside a franchisee's territory, under any terms they deem appropriate. These provisions indicate that Focalpoint Coaching has the authority to implement different pricing or service models for specific types of clients or locations, irrespective of a franchisee's territorial rights. Therefore, Focalpoint Coaching's pricing activities can indeed be limited to certain geographic areas or subsets of franchisees, as they retain the right to set terms and conditions as they see fit.