Under what circumstances can a Focalpoint Coaching franchisee acquire a successor franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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13. EXPIRATION OF THIS AGREEMENT.
A. FRANCHISEE'S RIGHT TO ACQUIRE A SUCCESSOR FRANCHISE.
If Franchisee meets certain conditions, then Franchisee will have the option to acquire one (1) successor franchise term for seven (7) years. The qualifications and conditions for the successor term are described below.
When this Agreement expires:
- (1) if Franchisee (and each of Franchisee's owners) has substantially complied with this Agreement during its term; and
- (2) if Franchisee (and each of Franchisee's owners) is, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise (as provided in Subsection 13.B below) and on the date on which the term of the successor franchise would commence, in full compliance with this Agreement and all System Standards; and
- (3) provided that if the Office is located in a non-residential location, (a) Franchisee maintains possession of and agrees (regardless of cost) to remodel and/or expand the Office, add or replace Services, vehicles used by the Franchised Business, Operating Assets and/or Proprietary Products, and otherwise modify the Franchised Business as Franchisor requires to comply with System Standards then applicable for new FocalPoint Franchised Businesses, or (b) at Franchisee's option, Franchisee secures a substitute office that Franchisee approves and Franchisee develops that office according to System Standards then applicable for FocalPoint Franchised Businesses,
then Franchisee has the option to acquire a successor franchise term of seven (7) years commencing immediately upon the expiration of this Agreement if Franchisee complies with Franchisor's terms and conditions of renewal under this Agreement. Franchisee agrees to sign the form of franchise agreement Franchisor then uses to grant franchises for FocalPoint Franchised Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which, except for the Territory (which will remain the same), may contain provisions that differ materially from any and all of those contained in this Agreement, including the amount of the Ro
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee has the option to acquire a successor franchise term of seven years if they meet specific conditions. To be eligible, the franchisee and each of their owners must have substantially complied with the Franchise Agreement during its term. Additionally, on both the date the franchisee provides written notice of their intent to acquire a successor franchise and the date the successor franchise term would begin, they must be in full compliance with the agreement and all System Standards.
For a Focalpoint Coaching franchisee with an office in a non-residential location, they must either maintain possession of the office and agree to remodel, expand, or modify it as required to comply with the System Standards for new Focalpoint Coaching franchises, or secure a substitute office that meets the franchisor's approval and develop it according to the applicable System Standards.
To acquire a successor franchise, the franchisee must pay Focalpoint Coaching a renewal fee of $5,000, plus applicable taxes. This fee must be submitted along with the written notice of the franchisee's election to acquire the successor franchise. The franchisee must also sign the franchise agreement form then in use by Focalpoint Coaching for new franchises, modified as necessary to reflect that it is a successor franchise. Note that the new agreement may contain provisions that differ materially from the original agreement, except for the territory, which will remain the same.