Is Focalpoint Coaching required to participate in a franchisee's defense or indemnify them for damages in a proceeding involving a copyright?
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 legal proceeding involving a copyright. 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.
This means that if a Focalpoint Coaching franchisee is sued for copyright infringement related to their business operations, they will likely be responsible for their own legal defense and any resulting damages. Focalpoint Coaching retains the right to control any legal action it chooses to bring, even if the franchisee brings the matter to their attention.
This policy is important for prospective franchisees to consider, as it highlights the potential for legal expenses related to copyright issues. While Focalpoint Coaching claims copyrights in its Operations Manual, advertising, and marketing materials, the franchisee bears the risk of defending against copyright claims. It is advisable for potential franchisees to discuss this further with Focalpoint Coaching and consider obtaining appropriate insurance coverage to mitigate this risk.