factual

Who is responsible for covering the costs associated with the transferee's training program for a Focalpoint Coaching franchise transfer?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

this Agreement or otherwise by means other than automatic debit (e.g., by check) whenever Franchisor deems appropriate, and Franchisee agrees to comply with Franchisor's payment instructions.

4. TRAINING AND ASSISTANCE.

A. INITIAL TRAINING.

If this is Franchisee's first FocalPoint Franchised Business, then before the Franchised Business begins operating, Franchisor will train Franchisee (or, if Franchisee is an Entity, Franchisee's Managing Owner) or Franchisee's manager-level employee who Franchisor approves (the "Business Manager") on the material aspects of operating a FocalPoint Franchised Business. Franchisor will provide the initial training program either online or in-person, in its sole discretion. If the initial training program is provided in-person, it will be at a designated training facility of Franchisor's choice. Franchisee shall notify Franchisor in writing at least thirty (30) days prior to the commencement of the initial training program the name of the individual who will attend the initial training program.

Franchisor will provide initial training for Franchisee (or, if Franchisee is an Entity, Franchisee's Managing Owner) or Franchisee's Business Manager. Additional people beyond this one (1) person may attend initial training if Franchisee pays Franchisor's then current training charge for each additional person. Franchisor reserves the right to refuse to provide training to Franchisee or any of Franchisee's proposed attendees for whom Franchisor has not received the relevant training fee. Franchisee also agrees to pay for all travel and living expenses which Franchisee (or Franchisee's Managing Owner) and all of Franchisee's employees incur and for Franchisee's employees' wages and workers' compensation insurance in traveling to and from the designated training facility, except, if initial training is in-person, Franchisor will pay all supplied food and reasonable lodging expenses of Franchisee (or Franchisee's Managing Owner) and Franchisee's employees only while participating in the initial training program.

Franchisee (or Franchisee's Managing Owner) or Franchisee's Business Manager must satisfactorily complete initial training. If Franchisor determines that Franchisee (or Franchisee's Managing Owner) or Business Manager, if applicable, cannot complete initial training to Franchisor's satisfaction, Franchisor may terminate this Agreement, in which case Franchisor

will keep Ten Thousand Dollars ($10,000) of the initial franchise fee. Franchisor will return the other Thirty-Five Thousand Dollars ($35,000) of the initial franchise fee to Franchisee if Franchisee signs a general release in Franchisor's then-current form of its required general release.

Franchisee (or Franchisee's Managing Owner) may request additional training at the end of the initial training, to be provided at Franchisor's then current per diem charges, if Franchisee (or Franchisee's Managing Owner) does not feel sufficiently trained in the operation of a FocalPoint Franchised Business. Franchisor and Franchisee (or Franchisee's Managing Owner) will jointly determine the duration of this additional training.

Source: Item 22 — Contracts (FDD pages 56–57)

What This Means (2025 FDD)

Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the document does not explicitly state who is responsible for covering the costs associated with the transferee's training program during a franchise transfer. However, the FDD does provide information on initial and ongoing training costs for franchisees and their employees.

For initial training, Focalpoint Coaching provides training to the franchisee (or their Managing Owner) or a Business Manager. If additional people attend, the franchisee pays Focalpoint Coaching's current training charge for each additional person. The franchisee also covers all travel and living expenses, wages, and worker's compensation for themselves and their employees attending the training. However, if the initial training is in-person, Focalpoint Coaching will cover supplied food and reasonable lodging expenses for the franchisee (or Managing Owner) and their employees while participating in the initial training program.

For ongoing training, Focalpoint Coaching may require franchisees, their Business Managers, or other experienced employees to attend training courses and meetings, for which the franchisee agrees to pay all costs. Similarly, the franchisee is responsible for covering all travel and living expenses for themselves, their associates, and non-coaching employees during all training courses and programs. Since the FDD does not specify who pays for training during a transfer, it is important for a prospective franchisee to clarify with Focalpoint Coaching who is responsible for these costs during a transfer to avoid unexpected expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.