Under what circumstances can a Focalpoint Coaching franchisee close the business without risking termination for inactivity?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
D. GRANT OF FRANCHISE.
Franchisee has applied for a franchise to own and operate a FocalPoint Franchised Business. Subject to the terms and upon the conditions contained in this Agreement, Franchisor hereby grants Franchisee a franchise (the "Franchise") to operate a FocalPoint Franchised Business (the "Franchised Business"), and to use the Franchise System in its operation and sale of Services, for a term beginning on the Effective Date and expiring seven (7) years from that date, unless sooner terminated as provided herein. Franchisee agrees that the Franchised Business will be operated from an office located at the principal business address listed on Exhibit B (the "Office"), which may not be relocated without Franchisor's prior written approval. The Office may be located in a residence. The Office must primarily be used for the operation of the Franchised Business, but Franchisee may operate businesses that are not a Competitive Business from the Office. If the office is located in a non-residential location, the lease for the Office shall contain certain provisions prescribed by Franchisor, including, without limitation, requirements that Franchisor be notified of any lease defaults by Franchisee and have the right to cure such defaults within a reasonable time and that the lease may be assigned at any time by Franchisee to Franchisor. No additional offices may be established by Franchisee without Franchisor's prior written approval. If an Office has not been approved in writing by Franchisor as of the Effective Date, Franchisee agrees to locate an Office acceptable to Franchisor and obtain Franchisor's written approval of the location within sixty (60) days following the Effective Date. Notwithstanding the foregoing, Franchisee must open and operate the Franchised Business within sixty (60) days following the Effective Date.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the document does not explicitly detail the circumstances under which a franchisee can close their business without risking termination for inactivity. The FDD does outline conditions under which the agreement can be terminated, and the implications of termination, but it does not provide a specific process or policy for voluntarily closing the business while remaining in good standing with the franchisor.
Item 22 of the FDD discusses various aspects of the franchise agreement, including the grant of the franchise, the term of the agreement (seven years), and conditions for termination. It also covers the franchisee's obligations upon termination or expiration of the agreement, such as discontinuing the use of Focalpoint Coaching's marks and confidential information. However, it does not address the scenario of a franchisee wanting to cease operations without defaulting on the agreement.
To fully understand the conditions under which a Focalpoint Coaching franchisee can close their business without risking termination for inactivity, a prospective franchisee should directly ask the franchisor about the specific policies and procedures in place for such a situation. This would include understanding any required notifications, potential fees, or other obligations that must be met to avoid being considered in default of the franchise agreement.