Under what circumstances is a transfer by a Focalpoint Coaching franchisee defined?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a transfer by a franchisee is comprehensively defined. The definition includes not only the transfer of the Franchise Agreement itself but also extends to the transfer of the Franchised Business. This encompasses the sale of the business, its profits, losses, or capital appreciation, as well as the sale of the Franchised Business's assets. Furthermore, any change in ownership of the franchisee or their owners also constitutes a transfer under the terms of the agreement.

This broad definition of "transfer" has significant implications for a prospective Focalpoint Coaching franchisee. It means that any action that alters the control or ownership of the franchise, whether directly or indirectly, is subject to the franchisor's transfer policies. This includes not only outright sales but also more subtle changes in ownership structure. Therefore, franchisees need to seek approval from Focalpoint Coaching before making any changes to the business or its ownership.

Focalpoint Coaching requires prior written consent for any transfer. This requirement is typical in franchising, as it allows the franchisor to maintain control over who operates under their brand. The FDD outlines specific conditions that must be met for Focalpoint Coaching to approve a transfer. These conditions include ensuring the new franchise owner is qualified, all outstanding amounts are paid to Focalpoint Coaching and its vendors, and that the franchisee is not in default. Additionally, the new owner must complete training, and if the office is in a non-residential location, the landlord must approve the transfer or sublease. The franchisee or transferee must also sign the then-current Franchise Agreement and other required documents, pay a transfer fee, and sign a release if permitted by law.

Furthermore, Focalpoint Coaching retains the right of first refusal to acquire the franchisee's business or ownership interest, meaning they can match any offer made by a third party. This provision gives Focalpoint Coaching significant control over the transfer process and ensures they have the option to maintain ownership within their system. In the event of the death or disability of the franchisee or their managing owner, their representative has 12 months to either assign the franchise to an approved party or terminate the Franchise Agreement. These stipulations are important for prospective franchisees to consider, as they highlight the limitations and obligations associated with transferring a Focalpoint Coaching franchise.