Can Focalpoint Coaching suspend my right to participate in advertising programs, and if so, under what conditions?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
eement; or
- (26) Franchisee (or any of Franchisee's owners) fails to comply with any other provision of this Agreement or any System Standard and does not correct the failure within thirty (30) days after Franchisor delivers written notice of the failure to Franchisee.
C. FRANCHISOR'S ALTERNATE REMEDIES UPON FRANCHISEE'S DEFAULT.
In addition to, and without limiting, Franchisor's other rights and remedies under this Agreement, any other agreement or applicable law, upon the occurrence of any event giving rise to Franchisor's right to terminate this Agreement under the preceding Subsection 14.B, Franchisor may instead elect, at Franchisor's sole option and upon providing Franchisee written notice, to take any or all of the following actions without terminating this Agreement:
- (1) temporarily remove information concerning the Franchised Business from any Website or extranet operated for the network of FocalPoint Franchised Businesses, and/or restrict Franchisee's or the Franchised Business' participation in other programs or benefits offered on or through any such Website or extranet;
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the option to suspend a franchisee's participation in advertising programs under specific circumstances. If an event occurs that would allow Focalpoint Coaching to terminate the Franchise Agreement, Focalpoint Coaching can choose, as an alternative to termination, to suspend the franchisee's right to participate in any advertising, marketing, promotional, or public relations programs that Focalpoint Coaching or the Fund provides, authorizes, or administers. This action can be taken at Focalpoint Coaching's sole option, provided they give the franchisee written notice.
This provision gives Focalpoint Coaching a tool to address franchisee defaults without immediately resorting to termination, which can be a lengthy and costly process. By suspending advertising and marketing participation, Focalpoint Coaching can exert pressure on a non-compliant franchisee to rectify the default.
For a prospective Focalpoint Coaching franchisee, this clause highlights the importance of adhering to the Franchise Agreement. Failure to comply with the agreement's terms could lead not only to potential termination but also to a suspension of advertising and marketing support, which could significantly impact the franchisee's business. It is important to note that this suspension is at Focalpoint Coaching's discretion, offering them flexibility in managing franchisee compliance.
Furthermore, any default or breach by the franchisee (or their owners) of any other agreement with Focalpoint Coaching or its affiliates will be considered an event of default under the Franchise Agreement. This 'cross default' provision means that a problem in one area of the franchise relationship can trigger consequences across all agreements, including the potential suspension of advertising and marketing participation.