Does Focalpoint Coaching reserve the right to operate Focalpoint Coaching Franchised Businesses at Non-Traditional Sites within a franchisee's territory?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching retains specific rights regarding the operation of Focalpoint Coaching Franchised Businesses, including the right to operate or grant others the right to operate Focalpoint Coaching Franchised Businesses at "Non-Traditional Sites" both within and outside a franchisee's territory. These rights are reserved by Focalpoint Coaching under terms and conditions they deem appropriate. Non-Traditional Sites are defined as locations that generate customer traffic independent of the surrounding area's general customer flow. Examples of Non-Traditional Sites include military bases, major industrial or office complexes, hotels, hospitals, and school campuses.
This reservation of rights has significant implications for prospective Focalpoint Coaching franchisees. Even though a franchisee is granted a specific territory, Focalpoint Coaching can still establish Focalpoint Coaching franchises in Non-Traditional Sites within that territory. This could lead to direct competition for the franchisee, potentially impacting their customer base and revenue. The franchisee's territorial rights are therefore non-exclusive, and they must be aware that Focalpoint Coaching can operate or authorize others to operate within their territory under certain circumstances.
This practice is not uncommon in the franchise industry, where franchisors often reserve certain rights to maintain flexibility and control over their brand's expansion. However, it is crucial for potential franchisees to fully understand the scope of these reserved rights and how they might affect their business. Prospective Focalpoint Coaching franchisees should carefully consider the potential impact of Non-Traditional Sites on their business and discuss any concerns with Focalpoint Coaching before signing the franchise agreement.