Are transfers to current owners of a Focalpoint Coaching franchise subject to the right of first refusal?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee (or any of Franchisee's owners) at any time determines to sell or transfer for consideration an interest in this Agreement and the Franchised Business, or an ownership interest in Franchisee (except to or among Franchisee's current owners, which is not subject to this Subsection 12.G), in a transaction that otherwise would be allowed under Subsections 12.B and C above, Franchisee (or Franchisee's owners) agrees to obtain from a responsible and fully disclosed buyer, and send Franchisor, a true and complete copy of a bona fide, executed written offer (which may include a letter of intent) relating exclusively to an interest in Franchisee or in this Agreement and the Franchised Business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, transfers to current owners are exempt from the franchisor's right of first refusal. Specifically, if a franchisee or any of their owners intends to sell or transfer their interest in the Franchise Agreement or the franchised business, or an ownership interest in the franchisee, Focalpoint Coaching has the first option to purchase that interest, matching the terms of a bona fide offer.
However, this right of first refusal does not apply when the transfer is made to or among the franchisee's current owners. This means that existing owners can transfer interests between themselves without triggering Focalpoint Coaching's right to step in and purchase the interest instead.
This exemption provides flexibility for the ownership structure within an existing Focalpoint Coaching franchise, allowing current owners to adjust their holdings without franchisor intervention. However, any transfer to an outside party would still be subject to Focalpoint Coaching's right of first refusal, ensuring they maintain control over who becomes a new franchisee.