Does Focalpoint Coaching require prior written consent for a franchisee to transfer their franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
y | | | of Franchise | assign without your approval. | | | Agreement | |
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE | |||
| OR OTHER | |||
| AGREEMENT | |||
| k. “Transfer” by | Section 12.B | Includes transfer of Franchise Agreement, the | |
| franchisee – defined | |||
| of Franchise | Franchised Business (or its profits, loses or | ||
| Agreement | capital appreciation) sale of Franchised | ||
| Business’ assets, and ownership change in you | |||
| or your owners. | |||
| l. Franchisor approval | Section 12.C | No transfer without our prior written consent. No transfer without our prior written consent. | |
| of transfer by | of Franchise | ||
| franchisee | Agreement | ||
| m. Conditions for | m. Conditions for | Section 12.C | New franchise owner qualifies; you pay us, our |
| franchisor approval | |||
| of transfer | |||
| franchisor approval | of Franchise | affiliates, and third party vendors all amounts | |
| of transfer | Agreement | due and submit all required reports; no default | |
| during 60-day period before transfer request or | |||
| during period between request and transfer’s | |||
| proposed effective date; new franchise owner | |||
| (and its owners and affiliates) are not in a | |||
| competitive business (unless we provide prior | |||
| written consent in our sole discretion); training | |||
| completed; if the Office is in a non-residential | |||
| location, your landlord allows the transfer or | |||
| sublease of your lease; you or transferee signs | |||
| our then current Franchise Agreement and other | |||
| documents; transfer fee paid; you sign release (if | |||
| law allows); we approve material terms; you | |||
| subordinate amounts due to you; you deidentify; |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise without prior written consent from Focalpoint Coaching. This requirement is detailed in Item 17, which outlines the provisions related to transfer of the franchise. Specifically, Section 12.C of the Franchise Agreement stipulates that no transfer is allowed without the franchisor's prior written approval. This condition is a standard practice in franchising, allowing the franchisor to maintain control over who enters the franchise system.
This requirement means that if a Focalpoint Coaching franchisee wishes to sell their business or transfer ownership, they must first obtain permission from Focalpoint Coaching. This process ensures that the new owner meets the franchisor's standards and is capable of upholding the brand's reputation and operational requirements. The franchisor's approval is contingent upon several conditions, including the new owner meeting the qualification criteria, settling any outstanding payments, and ensuring there are no defaults during the transfer process.
Furthermore, Focalpoint Coaching also retains the right of first refusal, meaning they have the option to match any offer made for the franchisee's business or ownership interest. This provision allows Focalpoint Coaching to acquire the franchise themselves if they deem it beneficial. The conditions for franchisor approval also include ensuring the new franchise owner is not involved in a competitive business, unless Focalpoint Coaching provides prior written consent at their sole discretion. This is to protect Focalpoint Coaching's market position and prevent conflicts of interest.
In addition to obtaining written consent, the franchisee must also ensure that the new owner completes the required training, and if the office is in a non-residential location, the landlord must approve the transfer or sublease of the lease. The franchisee or transferee must also sign the then-current Franchise Agreement and other required documents, pay a transfer fee, and sign a release if legally permissible. These conditions are typical in franchise agreements to ensure a smooth transition and protect the interests of all parties involved.