Under what circumstances can Focalpoint Coaching require a franchisee to modify or discontinue using a Mark?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If, in Franchisor's sole judgment, it becomes advisable at any time for Franchisor and/or Franchisee to modify or discontinue using any Mark and/or to use one or more additional or substitute trade or service marks, Franchisee agrees to comply with Franchisor's directions within a reasonable time after receiving notice. Franchisor need not reimburse Franchisee for Franchisee's direct expenses of changing the Franchised Business' signs, for any loss of revenue due to any modified or discontinued Mark, any loss of goodwill associated with any modified or discontinued Mark, or for Franchisee's expenses of promoting a modified or substitute trademark or service mark.
Franchisor's rights in this Subsection 5.D apply to any and all of the Marks (and any portion of any Mark) that Franchisor authorizes Franchisee to use in this Agreement. Franchisor may exercise these rights at any time and for any reason, business or otherwise, that Franchisor thinks best. Franchisee acknowledges both Franchisor's right to take this action and Franchisee's obligation to comply with Franchisor's directions.
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 authority to direct a franchisee to modify or discontinue the use of any Mark at any time. This decision is based on Focalpoint Coaching's sole judgment if it deems it advisable for both the franchisor and franchisee. The franchisor can also require the franchisee to use additional or substitute trade or service marks.
This clause in the franchise agreement means that a Focalpoint Coaching franchisee must comply with the franchisor's directions regarding Marks within a reasonable time after receiving notice. However, Focalpoint Coaching is not obligated to reimburse the franchisee for any expenses incurred due to these changes. These expenses could include the cost of changing the Franchised Business's signs, any loss of revenue, any loss of goodwill associated with the modified or discontinued Mark, or the costs of promoting a modified or substitute trademark or service mark.
The FDD emphasizes that Focalpoint Coaching's rights extend to any and all Marks that the franchisor authorizes the franchisee to use. Focalpoint Coaching can exercise these rights at any time and for any reason, whether business-related or otherwise, that it considers best. The franchisee acknowledges Focalpoint Coaching's right to take such action and the franchisee's obligation to comply with the franchisor's directions. This gives Focalpoint Coaching broad discretion over the use of its Marks and requires franchisees to adapt to changes as directed, bearing the associated costs and risks.