What section of the Focalpoint Coaching Franchise Agreement is modified regarding transfer by the franchisor?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee (and Franchisee's owners) is fully complying with this Agreement, then, subject to the other provisions of this Section 12, Franchisor will approve a transfer that meets all of the requirements in this Subsection 12.C.
If Franchisee is an entity, Franchisee's owners may transfer a non-controlling ownership interest in Franchisee or Franchisee's owners (determined as of the date on which the proposed transfer will occur) if: (1) the proposed transferee and its direct and indirect owners (if the transferee is an Entity) are of good character and otherwise meet Franchisor's then applicable standards for FocalPoint Franchised Business franchise owners (including no ownership interest in or performance of services for a Competitive Business, unless Franchisor provides prior written consent in its sole discretion); and (2) Franchisee gives Franchisor prior written notice of the transfer.
For any other proposed transfer (including a transfer of this Agreement, a transfer of a controlling ownership interest in Franchisee or one of Franchisee's owners, or a transfer which is one of a series of transfers (regardless of the time period over which these transfers take place) which in the aggregate transfer this Agreement or a controlling ownership interest in Franchisee or one of Franchisee's owners) all of the following conditions must be met before or concurrently with the effective date of the transfer:
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
The 2025 Focalpoint Coaching Franchise Disclosure Document (FDD) outlines specific conditions and modifications regarding the transfer of a franchise. While the FDD details the franchisee's ability to transfer the agreement under certain conditions, it does not explicitly state any modifications to sections of the Franchise Agreement related to transfer by the franchisor.
However, the document does provide information on the conditions under which a franchisee can transfer their interest, including transfers to a wholly-owned corporation or LLC, and the requirements that must be met for the franchisor to approve a transfer. These conditions generally involve the franchisee being in full compliance with the agreement, the transferee meeting the franchisor's standards, and the franchisor receiving prior written notice of the transfer.
Therefore, a prospective Focalpoint Coaching franchisee should directly ask the franchisor about any specific sections of the Franchise Agreement that address the franchisor's right to transfer the agreement or the brand itself. Understanding these rights is crucial for assessing the long-term stability and potential changes in the franchise system.