Is Focalpoint Coaching required to reimburse a franchisee for any costs associated with the Computer System?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to obtain and use the computer hardware and/or operating software Franchisor may specify at any time and from time to time (the "Computer System"). Franchisor may modify specifications for and components of the Computer System. Franchisee agrees to maintain a functioning e-mail address. Franchisor's modification of specifications for the Computer System, and/or other technological developments or events, might require Franchisee to purchase, lease, and/or license new or modified computer hardware and/or software and to obtain service and support for the Computer System. Although Franchisor cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over this Agreement's remaining term, Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions and modifications) and required service or support. Franchisor has no obligation to reimburse Franchisee for any Computer System costs. Within sixty (60) days after Franchisee receives notice from Franchisor, Franchisee agrees to obtain the Computer System components that Franchisor designates and to ensure that Franchisee's Computer System, as modified, is functioning properly.
Franchisee agrees that Franchisor or Franchisor's affiliates may condition any license of proprietary software to Franchisee, or Franchisee's use of technology that Franchisor or Franchisor's affiliates develop or maintain, on Franchisee's signing a software license agreement or similar document that Franchisor or Franchisor's affiliates prescribe to regulate Franchisee's use of, and Franchisor's and Franchisee's respective rights and responsibilities with respect to, the software or technology. Franchisor, Franchisor's affiliates and designated suppliers may charge Franchisee a monthly or other fee for any software or technology that Franchisor,
Franchisor's affiliates or designated suppliers license to Franchisee and for other maintenance and support services that Franchisor, Franchisor's affiliates or designated suppliers provide during this Agreement's term.
Despite the fact that Franchisee agrees to buy, use, and maintain the Computer System according to Franchisor's standards and specifications, Franchisee will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, and upgrading of the Computer System; (2) the manner in which Franchisee's Computer System interfaces with Franchisor's and any third party's computer system; and (3) any and all consequences if the Computer System is not properly operated, maintained, and upgraded. Franchisor reserves the right to connect remotely to the Computer System.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has no obligation to reimburse a franchisee for any costs related to the Computer System. The franchisee is responsible for obtaining and using the computer hardware and/or operating software that Focalpoint Coaching specifies. These specifications may change, potentially requiring the franchisee to purchase, lease, or license new or modified hardware or software and to obtain service and support.
Even though Focalpoint Coaching cannot estimate the future costs of the Computer System or required support, and these costs might not be fully recoverable over the agreement's term, the franchisee is still responsible for covering these expenses. This includes the costs of obtaining the computer hardware and software, as well as any necessary service or support. The franchisee must obtain the designated Computer System components within 60 days of receiving notice from Focalpoint Coaching and ensure that the modified Computer System functions correctly.
The franchisee is also solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System, as well as how it interfaces with Focalpoint Coaching's and any third party's computer systems. The franchisee bears all consequences if the Computer System is not properly operated, maintained, and upgraded. Focalpoint Coaching reserves the right to remotely connect to the Computer System.
This arrangement places the financial burden of maintaining and updating the Computer System entirely on the franchisee, which is a common practice in franchising. Prospective franchisees should carefully consider these potential costs and factor them into their overall investment assessment. It is important to budget for ongoing technology expenses and to stay informed about any required updates or changes to the Computer System to ensure compliance with Focalpoint Coaching's standards.