Does Focalpoint Coaching have the right to terminate the franchise without cause?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| e. Termination by | Not Applicable. Not Applicable. | |
| franchisor without | ||
| cause | ||
| f. Termination by | Section 14.B | We may terminate your franchise only if you or your owners commit one of several violations. |
| franchisor with | of Franchise | |
| cause | Agreement | |
| g. “Cause” defined- | Section 14.B | You have 72 hours to cure any law, ordinance, |
| curable defaults g. “Cause” defined- | ||
| curable defaults | of Franchise | or regulation regulating the operation of the |
| Agreement | Franchised Business; 10 days to cure monetary defaults and failure to maintain required insurance; 30 days to cure operational defaults and other defaults not listed in (h) below; and 90 days to relocate the Office to a new site if you lose possession of the premises. | |
| h. “Cause” defined- | Non-curable defaults include: misrepresentation in acquiring the franchise; failure to open and operate the Franchised Business within 60 days after Franchise Agreement’s Effective Date; failure to complete training; abandonment; unapproved transfers; conviction of a felony crime or other offense; dishonest or unethical conduct; you, any of your owners, representatives, or employees make any illicit statements, including in an email to our employees, officers, or directors, or in any social media posts, or any other unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, gambling-related, drug-related, | |
| non-curable | ||
| defaults |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching cannot terminate the franchise agreement without cause. The FDD outlines specific conditions under which Focalpoint Coaching can terminate the franchise agreement with cause, meaning there must be a specific violation or breach of contract by the franchisee.
The document specifies that Focalpoint Coaching may terminate the franchise if the franchisee or their owners commit certain violations, as detailed in Section 14.B of the Franchise Agreement. These violations range from failing to comply with laws and regulations to engaging in dishonest or unethical conduct. Some violations are curable, meaning the franchisee has a period to correct the issue, while others are non-curable and lead to immediate termination.
Curable defaults include violations of laws, ordinances, or regulations affecting the Franchised Business, monetary defaults, failure to maintain required insurance, and operational defaults. The time to cure these defaults ranges from 72 hours to 90 days, depending on the nature of the default. Non-curable defaults include misrepresentation in acquiring the franchise, failure to open the Franchised Business on time, failure to complete training, abandonment, unapproved transfers, conviction of a felony, and dishonest or unethical conduct. This distinction between curable and non-curable defaults is important for franchisees to understand, as it dictates the steps they can take to avoid termination.