Is Focalpoint Coaching required to reimburse franchisees for costs associated with changes to the Computer System?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to change the Computer System at any time. There are no contractual limitations on the frequency and cost of this obligation. We need not reimburse you for any of these costs. We have independent, unlimited access to the information generated by the Computer System. We also reserve the right to connect remotely to the Computer System, but will not do so without providing prior notice to you. We or our affiliates may condition any license of proprietary software to you, or your use of technology that we or our affiliates develop or maintain, on your signing a software license agreement or similar document that we or our affiliates prescribe to regulate your use of, and our and your respective rights and responsibilities concerning, the software or technology. We, our affiliates and our designated suppliers may charge you a monthly or other fee for any software or technology that we or our affiliates license to you and for other maintenance and support services that we or our affiliates provide during the franchise term.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching is not required to reimburse franchisees for costs associated with changes to the Computer System. The FDD states that Focalpoint Coaching reserves the right to change the Computer System at any time, without any contractual limitations on the frequency and cost of this obligation.
This means that as a Focalpoint Coaching franchisee, you are responsible for all costs associated with upgrading or changing the Computer System, even if Focalpoint Coaching mandates these changes. This includes the costs of new hardware, software, installation, and training. The FDD explicitly states that Focalpoint Coaching does not need to reimburse franchisees for these costs.
This policy places the financial burden of keeping the Computer System up-to-date on the franchisee. Given that Focalpoint Coaching also has independent, unlimited access to the information generated by the Computer System, it is important for prospective franchisees to factor in potential future costs related to the Computer System when evaluating the franchise opportunity. It would be prudent to discuss potential upgrade costs and frequency with existing franchisees during the due diligence process.