Under what condition are transfer fees collectable by Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee (and Franchisee's owners) is fully complying with this Agreement, then, subject to the other provisions of this Section 12, Franchisor will approve a transfer that meets all of the requirements in this Subsection 12.C.
If Franchisee is an entity, Franchisee's owners may transfer a non-controlling ownership interest in Franchisee or Franchisee's owners (determined as of the date on which the proposed transfer will occur) if: (1) the proposed transferee and its direct and indirect owners (if the transferee is an Entity) are of good character and otherwise meet Franchisor's then applicable standards for FocalPoint Franchised Business franchise owners (including no ownership interest in or performance of services for a Competitive Business, unless Franchisor provides prior written consent in its sole discretion); and (2) Franchisee gives Franchisor prior written notice of the transfer.
For any other proposed transfer (including a transfer of this Agreement, a transfer of a controlling ownership interest in Franchisee or one of Franchisee's owners, or a transfer which is one of a series of transfers (regardless of the time period over which these transfers take place) which in the aggregate transfer this Agreement or a controlling ownership interest in Franchisee or one of Franchisee's owners) all of the following conditions must be met before or concurrently with the effective date of the transfer:
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
The 2025 Focalpoint Coaching Franchise Disclosure Document outlines specific conditions under which a franchisee may transfer their franchise agreement. If a franchisee is fully complying with the Franchise Agreement, Focalpoint Coaching will generally approve a transfer that meets all requirements outlined in Section 12.C of the agreement. These requirements likely involve ensuring the proposed transferee meets Focalpoint Coaching's standards for franchise owners.
For transfers beyond non-controlling ownership interest transfers, such as a transfer of the entire agreement or a controlling interest, additional conditions must be met before the transfer can take effect. These conditions are not specified in the provided excerpts, but they are alluded to in the text.
It is important to note that even with a transfer to a corporation or LLC wholly owned and controlled by the franchisee, the franchisee remains personally liable under the Franchise Agreement. This indicates that Focalpoint Coaching seeks to maintain the original franchisee's commitment and responsibility even after the transfer. Prospective franchisees should carefully review Section 12.C of the Franchise Agreement to fully understand the conditions and requirements for transferring their Focalpoint Coaching franchise, as the excerpts do not provide a comprehensive list of these conditions.