Under what conditions can Focalpoint Coaching inspect the office and franchised business of a franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
A. FRANCHISOR'S RIGHT TO INSPECT THE OFFICE AND FRANCHISED BUSINESS.
To determine whether Franchisee and the Franchised Business are complying with this Agreement and all System Standards, Franchisor and its designated agents or representatives may at all times and without prior notice to Franchisee, (1) inspect the Office; (2) photograph, observe and videotape the Office and the Franchised Business' operation for consecutive or intermittent periods Franchisor deems necessary; (3) remove samples of any products and supplies; (4) interview the Franchised Business' personnel and clients; and (5) inspect and copy
any books, records, and documents relating to the Franchised Business' operation. Franchisee agrees to cooperate with Franchisor fully. If Franchisor exercises any of these rights, Franchisor will not interfere unreasonably with the Franchised Business' operation, and if Franchisee's Office is located in a residence, Franchisor will only conduct an inspection if Franchisee hosts clients at the Office. Franchisee acknowledges that any evaluation or inspection that Franchisor or Franchisor's designated agents or representatives conduct is conducted in order to protect Franchisor's interests in the Franchise System and Marks and is not intended to exercise, and does not constitute, in whole or in part, control over the day-to-day operation of the Franchised Business and Franchisee agrees to never contend otherwise.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching, along with its agents or representatives, has the right to inspect a franchisee's office and franchised business to ensure compliance with the franchise agreement and system standards. This inspection can occur at any time and without prior notice to the franchisee.
The inspection may involve several actions, including physically inspecting the office, taking photographs, observing and videotaping the office and business operations for any duration deemed necessary, removing product and supply samples, interviewing personnel and clients, and inspecting and copying books, records, and documents related to the business's operation. The franchisee is expected to fully cooperate with Focalpoint Coaching during these inspections.
Focalpoint Coaching states that it will not interfere unreasonably with the business's operation during inspections. However, if the franchisee's office is located in a residence, Focalpoint Coaching will only conduct an inspection if the franchisee hosts clients at the office. The document clarifies that these evaluations and inspections are intended to protect Focalpoint Coaching's interests in the franchise system and marks, and should not be interpreted as control over the day-to-day operations of the franchised business.