Does Focalpoint Coaching have the right to provide services to national accounts outside the Territory?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) the right to provide, and to grant other the right to provide, Services to national accounts (meaning a client with more than one office in more than one territory) anywhere inside or outside the Territory under any terms and conditions Franchisor deems appropriate and regardless of the client's proximity to the Office. Under such circumstances, Franchisee is not entitled to any compensation from Franchisor on account of the national account's business 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 the right to provide services to national accounts, defined as clients with multiple offices across different territories, both inside and outside a franchisee's designated territory. This means that Focalpoint Coaching can directly service these national clients regardless of their proximity to a franchisee's office.
This reservation of rights has a direct financial impact on franchisees. The FDD explicitly states that franchisees are not entitled to any compensation from Focalpoint Coaching related to business generated by these national accounts within the franchisee's territory. In essence, while a franchisee may operate and market within a specific territory, Focalpoint Coaching can bypass this territorial exclusivity for national accounts.
For a prospective franchisee, this clause highlights a potential limitation on their revenue generation. While they have a defined territory, a significant client with a national presence could be managed directly by Focalpoint Coaching, depriving the franchisee of potential business and revenue. This is a common practice in franchising, where franchisors often retain control over large national accounts to ensure consistent service and maintain key client relationships. A prospective franchisee should inquire about the prevalence of national accounts in their target territory and understand how Focalpoint Coaching manages these relationships to assess the potential impact on their business.