Does Focalpoint Coaching have the right to acquire businesses providing similar services to Focalpoint Coaching Franchised Businesses?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) the right to acquire the assets or ownership interests of one or more businesses providing products and services the same as or similar to those provided at FocalPoint Franchised Businesses, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Territory); and
- (8) the right to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at FocalPoint Franchised Businesses, or by another business, even if such business operates, franchises and/or licenses competitive businesses in the Territory.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, Focalpoint Coaching retains specific rights regarding businesses offering similar services. Focalpoint Coaching has the right to acquire the assets or ownership interests of one or more businesses providing products and services the same as or similar to those provided at FocalPoint Franchised Businesses. Furthermore, Focalpoint Coaching can engage in franchising, licensing, or creating similar arrangements with these acquired businesses, irrespective of their location.
This clause means that a Focalpoint Coaching franchisee could potentially face competition from businesses acquired and subsequently franchised or licensed by Focalpoint Coaching, even within the franchisee's territory. This could impact the franchisee's market share and revenue.
Additionally, Focalpoint Coaching reserves the right to be acquired by a business providing similar products and services, or by another business, even if that business operates, franchises, and/or licenses competitive businesses in the franchisee's territory. This could result in a change of control and potentially alter the competitive landscape for the franchisee. Prospective franchisees should carefully consider these possibilities and their potential impact on their investment and business operations.