What rights does Focalpoint Coaching reserve regarding the franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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personal acquaintance of Franchisee, (ii) was referred to Franchisee, or (iii) resulted from Franchisee's indirect marketing efforts through digital media.
F. RIGHTS FRANCHISOR RESERVES.
Franchisor and Franchisor's affiliates retain all rights with respect to FocalPoint Franchised Businesses, the Marks, the sale of identical, similar or dissimilar products and services, and any other activities Franchisor deems appropriate whenever and wherever Franchisor desires. Specifically, but without limitation, Franchisor reserves the following rights:
- (1) the right to operate, and to grant others the right to operate FocalPoint Franchised Businesses located anywhere inside or outside the Territory under any terms and conditions Franchisor deems appropriate and regardless of proximity to the Office and the Franchised Business' Territory;
- (2) the right to establish and operate, and to grant to others the right to establish and operate businesses offering similar or dissimilar products and services through similar or alternative channels of distribution, inside or outside the Territory under trademarks or service marks other than the Marks and on any terms and conditions Franchisor deems appropriate;
- (3) the right to provide, offer and sell and to grant others the right to provide, offer and sell products and services that are identical or similar to and/or competitive with those products and services provided by FocalPoint Franchised Businesses, whether identified by the Marks or other trademarks or service marks, through alternative distribution channels (including, without limitation, the internet or similar electronic media) both inside and outside the Territory and on any terms and conditions Franchisor deems appropriate;
- (4) the right to establish and operate, and to grant to others the right to establish and operate, businesses offering dissimilar products and services, both inside and outside the Territory under the Marks and on any terms and conditions Franchisor deems appropriate;
- (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;
- (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;
- (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.
G. MODIFICATION OF FRANCHISE SYSTEM.
Because complete and detailed uniformity under many varying conditions might not be possible or practical, Franchisee acknowledges that Franchisor specifically reserves the right and privilege, as Franchisor considers to be best, to vary System Standards (defined below) for any franchise owner based upon the peculiarities of any condition that Franchisor considers important to that franchise owner's successful operation. Franchisee has no right to require Franchisor to grant Franchisee a similar variation or accommodation.
2. OPENING OF FRANCHISED BUSINESS.
A. OFFICE DEVELOPMENT.
Franchisee is responsible for developing the Office.
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 extensive rights regarding the franchise. These rights allow Focalpoint Coaching to operate and grant others the right to operate Focalpoint Coaching businesses anywhere, including within a franchisee's territory, under terms Focalpoint Coaching deems appropriate. This includes the right to offer similar or dissimilar products and services through various channels, even those that compete with the franchisee, using different trademarks.
Focalpoint Coaching also reserves the right to provide services to national accounts, regardless of their location, without compensating the franchisee, and to operate franchises at non-traditional sites within or outside the franchisee's territory. Additionally, Focalpoint Coaching can acquire businesses that offer similar products or services and franchise or license them, even within a franchisee's territory. They also have the right to be acquired by a similar business, even if that business competes with existing Focalpoint Coaching franchises.
Furthermore, Focalpoint Coaching reserves the right to modify the System Standards for any franchise owner based on conditions they deem important for the franchisee's success, without granting other franchisees the right to demand similar variations. Focalpoint Coaching also retains the right to provide mandatory and suggested specifications for the Focalpoint Coaching Franchised Business office. These reserved rights highlight that a Focalpoint Coaching franchisee's rights within their territory are non-exclusive and subject to significant potential competition from Focalpoint Coaching itself or other franchisees.
These stipulations mean that while a franchisee may develop a business within a specific territory, Focalpoint Coaching maintains considerable control and can introduce competition through various avenues. Prospective franchisees should carefully consider these reserved rights and their potential impact on their business's market and profitability. It is important to understand how Focalpoint Coaching might exercise these rights and how they could affect the franchisee's operations and revenue.