Under what condition can Focalpoint Coaching terminate the Franchise Agreement if an office is not opened?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If an Office has not been approved in writing by us as of the Effective Date of the Franchise Agreement, you agree to locate an Office acceptable to us and obtain our written approval of the location within 60 days following the Effective Date of the Franchise Agreement. We do not anticipate a situation where we would own the Site and lease it to you for the Office. If we and you cannot agree on an acceptable site and you do not open your Office within 60 days following the Effective Date of the Franchise Agreement, we may terminate the Franchise Agreement. (Franchise Agreement − Sections 1.D. and 14.B.)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching can terminate the Franchise Agreement if an acceptable office site is not secured and the office is not opened within a specific timeframe. Specifically, if Focalpoint Coaching and the franchisee cannot agree on an acceptable site for the office, and the franchisee fails to open the office within 60 days following the Effective Date of the Franchise Agreement, Focalpoint Coaching reserves the right to terminate the agreement.
This condition highlights the importance of site selection in the early stages of establishing a Focalpoint Coaching franchise. The franchisee bears the responsibility of finding a location that meets Focalpoint Coaching's criteria, and securing written approval from Focalpoint Coaching within 60 days of the agreement's effective date. This requirement applies whether the office is in a residential or non-residential location, although non-residential locations have additional criteria related to demographics, parking, neighborhood character, competition, size, and appearance.
Prospective franchisees should carefully consider the implications of this clause. The 60-day window may present a challenge, especially if suitable locations are scarce or if negotiations with landlords are protracted. Failure to meet this deadline can result in termination of the Franchise Agreement, potentially leading to a loss of the initial investment. It is crucial for franchisees to proactively engage with Focalpoint Coaching during the site selection process and to diligently pursue suitable locations to avoid the risk of termination.