Focalpoint_Coaching 2025 Franchise FAQ - FDD Ninja

Question 1

According to the Focalpoint Coaching training schedule, how many total hours of classroom training are provided?

Accepted Answer

nitial training:

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## **TRAINING PROGRAM**

| Column 1                | Column 2                          | Column 3                        | Column 4 |
|-------------------------|-----------------------------------|---------------------------------|----------|
| Subject                 | Hours of Classroom Training | Hours of On-The Job Training | Location |
| Overview                | 2                                 | 0                               | Online   |
| The Foundation          | 3.5                               | 0                               | Online   |
| DISC                    | 2.75                              | 0                               | Online   |
| Coaching | 11 | 0 | Online |
| Technique |  |  |  |
| Prospecting             | 8.5                               | 0                               | Online   |
| Presenting & | 14.25 | 0 | Online |
| Selling |  |  |  |
| Technology              | 2                                 | 0                               | Online   |
| Total                   | 44                                | 0                               |          |

1.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)

Question 2

How does Focalpoint Coaching balance the need for standardization with the franchisee's desire for flexibility in sourcing products and services?

Accepted Answer

rs in which any of our officers owns an interest.

You currently must purchase all Proprietary Products (including business cards, marketing materials and coaching modules) from us, our affiliates, and our designated suppliers. If you choose to use an advertising and/or telemarketing service to promote your Franchised Business, you must use our designated supplier(s) for telemarketing and advertising services. If you choose to purchase TTI personality profile assessment access codes for use in your Franchised Business, we will require you to purchase them from us (or our affiliate) or directly from our designated supplier, currently TTI. In addition, you must license the CRM system and application service systems from our designated supplier, currently, HubSpot, for management and support services. There are no other goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate or comparable items for establishing or operating the Franchised Business that you currently must buy or lease from us (or an affiliate) or designated suppliers. Any purchases from us and our affiliates, whether required or voluntary, generally will be at prices exceeding our costs.

To maintain the quality of the goods and services that FocalPoint Franchised Businesses sell and our system's reputation, we may condition your right to buy or lease goods and/or services (besides those described above that you may obtain only from us, our affiliates, and/or other specified exclusive sources) on their meeting our minimum standards and specifications

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and/or being acquired from suppliers that we approve. We will issue and modify standards and specifications based on our, FocalPoint International's, and our franchise owners' experience in operating FocalPoint Franchised Businesses. Our standards and specifications may impose minimum requirements for production, performance, reputation, prices, quality, design, and appearance. Our Operations Manual or other communications will identify our standards and specifications. We will notify you and, where appropriate, the suppliers, of our standards and specifications. There might be situations where you can obtain items from any supplier who can satisfy our requirements and, therefore, would be an approved supplier.

If we institute any type of restrictive sourcing program (which, as noted above, we have already done for Proprietary Products and may do so for other items) and you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved or designated, you first must send us sufficient information, specifications, and samples so that we can determine whether the item or service complies with System Standards or the supplier meets approved supplier criteria. We may charge you or the supplier a reasonable fee for the evaluation (see Item 6) and will decide within a reasonable time (no more than 30 days). We periodically will establish procedures for your requests and may limit the number of approved items, services, and/or suppliers as we think best.

Supplier approval might depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us, FocalPoint International, and/or our system for the right to do business with our system. We, FocalPoint International, and any other affiliate have the right to receive payments or other material consideration from suppliers on account of their actual or prospective dealings with you and other franchise owners and to use all amounts that we and our affiliates receive without restriction (unless we and our affiliates agree otherwise with the supplier) for any purposes we and our affiliates deem appropriate. Supplier approval might be temporary until we evaluate the supplier in more detail. We may inspect a proposed supplier's facilities during and after the approval process to make sure that the supplier meets our standards. If it does not, we may revoke our approval by notifying the supplier and you in writing. We have no obligation to approve any request for a new supplier, product, or service. There are no fees associated with our evaluation and approval or disapproval of proposed suppliers.

Insurance. Besides these purchases or leases, you must obtain and maintain, at your own expense, the insurance coverage that we periodically prescribe and satisfy other insurance-related obligations. We currently recommend that you obtain professional liability insurance for the Franchised Business and comprehensive public liability, general liability, employment practices liability insurance, product liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring from the Franchised Business's operation, all containing the minimum liability coverage we may recommend, worker's compensation insurance as required by law, and any other coverage required by law or your lease. Currently, we recommend at least the following minimum insurance policy coverages for your operation of the Franchised Business: (a) professional general liability and broad form contractual liability insurance to cover errors, omissions or negligent acts of at least \$1,000,000 aggregate per policy year, which may not have a deductible or self-insured retention of over \$5,000; and (b) if any vehicle is operated in connection with

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your Franchised Business, then automobile liability coverage in the greater of the amount required by all applicable state and federal laws or \$1,000,000 per person, total minimum liability of \$2,000,000 per occurrence, and a minimum limit of \$300,000 for property casualty per occurrence. In addition to the insurance above, if your Office is located in a non-residential location, you should purchase fire and extended coverage insurance, and you should purchase builders' or contractors' insurance and performance and completion bonds in connection with any construction, refurbishing or remodeling of the Office. Premiums depend on the insurance carrier's charges, terms of payment, and your history. All insurance policies must name us as an additional insured party.

Advertising Materials. Before you use them, you must send us for review samples of all advertising, promotional, and marketing materials that we have not prepared or previously approved. If you do not receive written disapproval within 5 days after we receive the materials, they are deemed to be approved. You may not use any advertising, promotional, or marketing materials that we have not approved or have disapproved.

Office Development.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 23–26)

Question 3

What conditions must be met before a Focalpoint Coaching franchisee can begin operating the franchised business?

Accepted Answer

If this is Franchisee's first FocalPoint Franchised Business, then before the Franchised Business begins operating, Franchisor will train Franchisee (or, if Franchisee is an Entity, Franchisee's Managing Owner) or Franchisee's manager-level employee who Franchisor approves (the "Business Manager") on the material aspects of operating a FocalPoint Franchised Business. Franchisor will provide the initial training program either online or in-person, in its sole discretion. If the initial training program is provided in-person, it will be at a designated training facility of Franchisor's choice. Franchisee shall notify Franchisor in writing at least thirty (30) days prior to the commencement of the initial training program the name of the individual who will attend the initial training program.

Franchisor will provide initial training for Franchisee (or, if Franchisee is an Entity, Franchisee's Managing Owner) or Franchisee's Business Manager. Additional people beyond this one (1) person may attend initial training if Franchisee pays Franchisor's then current training charge for each additional person. Franchisor reserves the right to refuse to provide training to Franchisee or any of Franchisee's proposed attendees for whom Franchisor has not received the relevant training fee. Franchisee also agrees to pay for all travel and living expenses which Franchisee (or Franchisee's Managing Owner) and all of Franchisee's employees incur and for Franchisee's employees' wages and workers' compensation insurance in traveling to and from the designated training facility, except, if initial training is in-person, Franchisor will pay all supplied food and reasonable lodging expenses of Franchisee (or Franchisee's Managing Owner) and Franchisee's employees only while participating in the initial training program.

Franchisee (or Franchisee's Managing Owner) or Franchisee's Business Manager must satisfactorily complete initial training. If Franchisor determines that Franchisee (or Franchisee's Managing Owner) or Business Manager, if applicable, cannot complete initial training to Franchisor's satisfaction, Franchisor may terminate this Agreement, in which case Franchisor

Source: Item 22 — Contracts (FDD pages 56–57)

Question 4

What is the estimated minimum and maximum total initial investment for a Focalpoint Coaching franchise?

Accepted Answer

ENT**

## **YOUR ESTIMATED INITIAL INVESTMENT**

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $0 – $45,000 | Lump Sum | Upon signing Franchise Agreement | Us |
| Regional Setup Fee (1) | $3,950 | Lump Sum | Upon signing Franchise Agreement | Us |
| CRM Setup Fee | $1,000 | Lump Sum | Upon signing Franchise Agreement | Us |
| Real Estate/Rent (2) | $0 - $10,000 | As Agreed | As Incurred | Landlord |
| Computer System and | $500 - $5,000 | As Agreed | As Incurred | Outside |
| Telephone (3) |  |  |  | Suppliers |
| Initial Training Fee (4) | $16,950 | Lump Sum | Upon signing Franchise Agreement | Us |
| Initial Marketing Fee (1) | $2,950 | Lump Sum | Upon singing Franchise Agreement | Us |
| Technology Fee (1) | $0 - $3,000 | Lump Sum | Upon signing Franchise Agreement | Us |![](_page_20_Picture_0.jpeg)

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Conference Registration Fee (for 1 person) (1) | $0 - $2,250 | Lump Sum | Upon signing Franchise Agreement | Us |
| Professional Fees | $0 - $4,000 | As Agreed | As Incurred | Lawyers, Accountants and other Advisors |
| Furniture, Equipment | $0 - $9,000 | As Agreed | As Incurred | Outside |
| and Signs (5) |  |  |  | Suppliers |
| Business License and | $0 - $2,000 | As Agreed | As Incurred | Government |
| Permits |  |  |  | Agencies |
| Opening Inventory and Supplies (6) | $100 - $3,000 | As Agreed | As Incurred | Designated and Approved Suppliers, Us |
| Training Expenses (out- | $500 - $1,500 | As Incurred | As Incurred | Third Parties |
| of-pocket costs for 1 |  |  |  |  |
| person) |  |  |  |  |
| Insurance – 3 months (7) | $500- $7,000 | As Incurred | As Incurred | Insurance Company |
| Additional Funds - | $9,000- $20,000 | As Incurred | As Incurred | Third Parties |
| 3 months (8) |  |  |  |  |
| TOTAL ESTIMATED INITIAL INVESTMENT (9) | $35,450 – $136,600 |  |  |  |## **Explanatory Notes**

- \* If you operate a FocalPoint AR Business under an Area Representative Agreement with us

Source: Item 7 — Estimated Initial Investment (FDD pages 20–23)

Question 5

How many Focalpoint Coaching outlets in total were non-renewed in 2024?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
|  | 2023 | 0 |
|  | 2024 | 1 |
| Georgia | 2022 | 0 |
|  | 2023 | 0 |
|  | 2024 | 1 |
| Kansas | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Missouri | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Totals | 2022 | 2 |
|  | 2023 | 0 |
|  | 2024 | 2 |
**Table 3 Status of Franchised Outlets For years 2022 to 2024**

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–56)

Question 6

What was the total amount spent on all listed expenses for Focalpoint Coaching in the earlier year presented in the table?

Accepted Answer

Our report on our audits of the basic financial statements of FocalPoint Coaching, Inc. for the years ended December 31, 2024 and 2023 appear on pages 1 and 2. Those audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of net revenues, cost of revenues, general and administrative expenses on pages 18 through 19 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Source: Item 21 — Financial Statements (FDD page 56)

Question 7

What was the total amount spent on all listed expenses for Focalpoint Coaching in the later year presented in the table?

Accepted Answer

Our report on our audits of the basic financial statements of FocalPoint Coaching, Inc. for the years ended December 31, 2024 and 2023 appear on pages 1 and 2. Those audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules of net revenues, cost of revenues, general and administrative expenses on pages 18 through 19 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Source: Item 21 — Financial Statements (FDD page 56)

Question 8

What was the total number of Focalpoint Coaching outlet transfers in 2023?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
|  | 2023 | 0 |
|  | 2024 | 1 |
| Georgia | 2022 | 0 |
|  | 2023 | 0 |
|  | 2024 | 1 |
| Kansas | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Missouri | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Totals | 2022 | 2 |
|  | 2023 | 0 |
|  | 2024 | 2 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–56)

Question 9

What was the total number of Focalpoint Coaching outlets that opened across all states in 2022?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
|  | 2023 | 0 |
|  | 2024 | 1 |
| Georgia | 2022 | 0 |
|  | 2023 | 0 |
|  | 2024 | 1 |
| Kansas | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Missouri | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Totals | 2022 | 2 |
|  | 2023 | 0 |
|  | 2024 | 2 |
**Table 3 Status of Franchised Outlets For years 2022 to 2024**

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–56)

Question 10

Considering the lack of financing options for Focalpoint Coaching in Item 10, what is the significance of the initial investment amounts detailed in Item 7?

Accepted Answer

he type of ownership interest you are buying.

- 3. You must purchase a Computer System (defined in Item 11) that meets our specifications. We estimate that your purchase of the Computer System and the costs of setting up your phone lines will be between \$500 and \$5,000. See Item 11 for more information.
- 4. We describe the initial training fee in Item 5.
- 5. The costs for furniture, equipment and signs vary depending on the size, configuration and condition of the Office, and whether the Office is located in a residence or a commercial space.
- 6. We provide an initial supply of Proprietary Products to you as partial consideration for your payment of the initial franchise fee. You are responsible for purchasing any additional Proprietary Products other than those we provide to you.
- 7. You must obtain and maintain certain types and amounts of insurance. (See Item 8) Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure. The estimate contemplates insurance costs for 3 months.
- 8. This item estimates your initial start up expenses (other than the items identified separately in the table). These expenses include payroll costs (but not any draw or salary for you); equipment; installations; security deposits; utility costs; incorporation fees; signage; materials; and any unforeseen incidental expenses related to facilities improvements. These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business. We relied on FocalPoint International's over 20 years of experience as a franchisor to compile these estimates.
- 9.

Question 11

Are FocalPoint Franchised Businesses operating under franchise agreements with FocalPoint International required to contribute to the Advertising and Development Fund on the same basis as other Focalpoint Coaching franchisees?

Accepted Answer

uch entity will have all of the rights and duties described here. You must contribute to the Fund the amounts that we periodically require, not to exceed \$150 per month, plus an additional \$150 per month for each Associate you retain or hire (currently, \$150 plus \$150 per Associate per month). (See Item 6) FocalPoint Franchised Businesses operating under franchise agreements with FocalPoint International also contribute to the Fund but may contribute on a different basis than your contributions to the Fund. FocalPoint Franchised

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Businesses that we or

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)

Question 12

Does the Focalpoint Coaching franchisor need to provide a cure period for all termination reasons?

Accepted Answer

However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.

If Franchisee and Franchisee's owners are fully complying with this Agreement and Franchisor materially fails to comply with this Agreement and does not correct the failure within thirty (30) days after Franchisee delivers to Franchisor written notice of the material failure to Franchisor or, if Franchisor cannot correct the failure within thirty (30) days, gives Franchisee within thirty (30) days after Franchisee's notice reasonable evidence of Franchisor's effort to correct the failure within a reasonable time (which may extend beyond that thirty (30) days), Franchisee may terminate this Agreement effective an additional thirty (30) after Franchisee delivers to Franchisor written notice of termination. (The time period during which Franchisor may cure any alleged material failure to comply with this Agreement after Franchisee's delivery of notice is called the "Cure Period.") However, if Franchisor sends Franchisee written notice during the Cure Period indicating that either (1) Franchisor does not agree that Franchisor has materially failed to comply with this Agreement or (2) Franchisor has fully corrected the failure, then Franchisee may not terminate this Agreement**.** If Franchisee disagrees with Franchisor's position and still wishes to terminate this Agreement, Franchisee must commence an arbitration proceeding seeking a declaration of Franchisee's right to terminate this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 13

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential costs associated with real estate/rent as outlined in Item 7?

Accepted Answer

ee and Conference Registration Fee in Item 5.
- 2. It is your responsibility to identify an Office within the Territory. Your Office may be located in your residence. We estimate that your Office should occupy approximately

![](_page_21_Picture_0.jpeg)

200 to 800 square feet of space. If your Office is located outside of a residence, we anticipate that you will rent the Office premises. Rent depends on geographic location, size, local rental rates, businesses in the area, site profile, and other factors and could be considerably higher in large metropolitan areas. FocalPoint Franchised Business offices can be located in strip shopping centers, shopping malls, free-standing units, and other venues in downtown commercial areas and in residential areas. It is possible, however, that you might choose to buy, rather than rent, real estate on which a building suitable for the Office already is constructed or could be constructed. Real estate costs depend on location, size, visibility, economic conditions, accessibility, competitive market conditions, and the type of ownership interest you are buying.

- 3. You must purchase a Computer System (defined in Item 11) that meets our specifications. We estimate that your purchase of the Computer System and the costs of setting up your phone lines will be between \$500 and \$5,000. See Item 11 for more information.
- 4. We describe the initial training fee in Item 5.
- 5. The costs for furniture, equipment and signs vary depending on the size, configuration and condition of the Office, and whether the Office is located in a residence or a commercial space.
- 6. We provide an initial supply of Proprietary Products to you as partial consideration for your payment of the initial franchise fee. You are responsible for purchasing any additional Proprietary Products other than those we provide to you.
- 7. You must obtain and maintain certain types and amounts of insurance. (See Item 8) Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure. The estimate contemplates insurance costs for 3 months.
- 8. This item estimates your initial start up expenses (other than the items identified separately in the table). These expenses include payroll costs (but not any draw or salary for you); equipment; installations; security deposits; utility costs; incorporation fees; signage; materials; and any unforeseen incidental expenses related to facilities improvements. These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business. We relied on FocalPoint International's over 20 years of experience as a franchisor to compile these estimates.
- 9. You should review these figures carefully with a business advisor before deciding to acquire the franchise. We do not offer financing directly or indirectly for any part of the initial investment. The availability and terms of financing depend on many factors, including the availability of financing generally, your creditworthiness and collateral, and lending policies of financial institutions from which you request a loan.

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## **Item 8**

## **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES**

You must operate the Franchised Business according to our System Standards. System Standards may regulate, among other things, the types, models, and brands of Proprietary Products, fixtures, furniture, vehicles, furnishings, and signs (collectively, "Operating Assets"); products, other equipment and supplies you must use in operating the Franchised Business; unauthorized and prohibited products, equipment, and services; inventory requirements; and designated and approved suppliers of Operating Assets, Proprietary Products and other items.

In the case of Proprietary Products, suppliers will be limited to us, our affiliates, and/or our designated third party suppliers, and you must buy Proprietary Products during the franchise term only from us, our affiliates, and/or our designated third party suppliers at the prices we and they decide to charge. We restrict your sources of Proprietary Products in order to protect our trade secrets, assure quality, assure a reliable supply of products that meet our standards, achieve better terms of purchase and delivery service, control usage of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items. You will acquire an initial supply of Proprietary Products, including business cards and marketing materials from us as partial consideration for your payment of the training fee (see Item 5).

Question 14

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential for creating a business that aligns with their personal values and passions?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 15

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential for creating a business that provides financial security and independence?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 16

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential for creating a fulfilling and rewarding career?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 17

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential for creating a valuable asset that can be sold or transferred in the future?

Accepted Answer

[Item 5: Initial Fees]

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is $45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, $40,500, or a 10% reduction of our current standard initial franchise fee of $45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fees ranging from $40,500 to $45,000.

FocalPoint Coaching Inc. FocalPoint – 03/2025 Unit FDD

Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.

Question 18

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential for long-term growth and expansion of the franchise?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 19

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential return on investment that a franchisee might achieve over the life of the franchise?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fees ranging from \$40,500 to \$45,000.

You must pay us an initial marketing fee in the amount of \$2,950, plus any applicable taxes, (the "Initial Marketing Fee") in a lump sum when you sign the Franchise Agreement. The Initial Marketing Fee contributes to our costs associated with direct marketing for clients for your FocalPoint Franchised Business. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the AR Addendum which will waive your obligation to pay the Initial Marketing Fee. Except as noted above for Area Representatives, the Initial Marketing Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us an initial training fee in the amount of \$16,950, plus any applicable taxes, when you sign the Franchise Agreement. We use the initial training fee to train you (or your managing owner) or your business manager who we app

Question 20

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the potential revenue that a franchisee might generate in their first year of operation?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 21

How does the initial franchise fee for Focalpoint Coaching in Item 5 compare to the total estimated initial investment detailed in Item 7?

Accepted Answer

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $0 – $45,000 | Lump Sum | Upon signing Franchise Agreement | Us |
| Regional Setup Fee (1) | $3,950 | Lump Sum | Upon signing Franchise Agreement | Us |
| CRM Setup Fee | $1,000 | Lump Sum | Upon signing Franchise Agreement | Us |
| Real Estate/Rent (2) | $0 - $10,000 | As Agreed | As Incurred | Landlord |
| Computer System and | $500 - $5,000 | As Agreed | As Incurred | Outside |
| Telephone (3) |  |  |  | Suppliers |
| Initial Training Fee (4) | $16,950 | Lump Sum | Upon signing Franchise Agreement | Us |
| Initial Marketing Fee (1) | $2,950 | Lump Sum | Upon singing Franchise Agreement | Us |
| Technology Fee (1) | $0 - $3,000 | Lump Sum | Upon signing Franchise Agreement | Us |

Question 22

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the ongoing fees that a franchisee might incur, as detailed in Item 6?

Accepted Answer

fundable under any circumstances.

You must pay us a technology fee in the amount of \$3,000, plus any applicable taxes, (the "Technology Fee") in a lump sum when you sign the Franchise Agreement as the first payment of the annual Technology Fee. You must pay us an additional Technology Fee for each Associate you retain or hire. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the AR Addendum which will waive your obligation to pay the Technology Fee under the Franchise Agreement until such time as your Area Representative Agreement terminates or expires. The Technology Fee contributes to our costs associated with the creation, maintenance and ongoing development of the intranet site and other technology used for the Franchise System. See Item 6 for additional information. Except as noted above for Area Representatives, the Technology Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us a non-refundable regional setup fee in the amount of \$3,950, plus any applicable taxes, (the "Regional Setup Fee") in a lump sum when you sign the Franchise Agreement. The Regional Setup Fee is used to support our initial setup procedures based on the Territory specific to your Franchised Business.

You must pay us a conference registration fee (the "Conference Registration Fee") for each person that may attend our annual national and/or regional conferences in a lump sum when you sign the Franchise Agreement as the first payment of the annual Conference Registration Fee. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the AR Addendum which will waive your obligation to pay the Conference Registration Fee under the Franchise Agreement until such time as your Area Representative Agreement terminates or expires. Currently, the Conference Registration Fee is \$2,250, plus any applicable taxes, per person (including any Associates). See Item 6 for additional information. Except as noted above for Area Representatives, the Conference Registration Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us a customer relationship management (CRM) system setup fee in the amount of \$1,000, plus any applicable taxes, (the "CRM Setup Fee") in a lump sum when you sign the Franchise Agreement. You must pay us an additional CRM Setup Fee for each Associate you retain or hire. The CRM Setup Fee is used to support our initial setup procedures for the customer relationship management system. See Item 6 for additional information. The CRM Setup Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

![](_page_13_Picture_0.jpeg)

## **Item 6**

## **OTHER FEES**

| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Submit Required Reports | $75 | As incurred | If you fail to send us the reports required by the Franchise Agreement, we may debit your account this amount on the 5th day of the month following your failure to submit the require reports. |
| Costs and | Will vary under | As incurred | Due when you do not comply with the |
| Attorneys’ Fees | circumstances |  | Franchise Agreement. |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all Brand Damages related to the early termination. See Note 6. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us for claims from your Franchised Business’ operation.

Question 23

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the overall profitability of the franchise over its term?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 24

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential for building a successful and sustainable business?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fees ranging from \$40,500 to \$45,000.

You must pay us an initial marketing fee in the amount of \$2,950, plus any applicable taxes, (the "Initial Marketing Fee") in a lump sum when you sign the Franchise Agreement. The Initial Marketing Fee contributes to our costs associated with direct marketing for clients for your FocalPoint Franchised Business. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the AR Addendum which will waive your obligation to pay the Initial Marketing Fee. Except as noted above for Area Representatives, the Initial Marketing Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us an initial training fee in the amount of \$16,950, plus any applicable taxes, when you sign the Franchise Agreement. We use the initial training fee to train you (or your managing owner) or your business manager who we approve ("Business Manager"), and for

![](_page_12_Picture_0.jpeg)

the cost of an initial supply of business cards and marketing materials. If we determine that you (or your managing owner) or Business Manager (if applicable) cannot complete initial training to our satisfaction, we may terminate the Franchise Agreement and refund the initial franchise fee, less \$10,000 for our expenses.

The initial training fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us a technology fee in the amount of \$3,000, plus any applicable taxes, (the "Technology Fee") in a lump sum when you sign the Franchise Agreement as the first payment of the annual Technology Fee.

Question 25

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential for creating a business that makes a positive contribution to society?

Accepted Answer

to be disclosed in this Item.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 26

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential for creating a business that provides a valuable service to the community?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 27

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential for creating a legacy and building a business that can be passed on to future generations?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 28

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential for creating a positive impact on the lives of their clients?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fees ranging from \$40,500 to \$45,000.

You must pay us an initial marketing fee in the amount of \$2,950, plus any applicable taxes, (the "Initial Marketing Fee") in a lump sum when you sign the Franchise Agreement. The Initial Marketing Fee contributes to our costs associated with direct marketing for clients for your FocalPoint Franchised Business. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the AR Addendum which will waive your obligation to pay the Initial Marketing Fee. Except as noted above for Area Representatives, the Initial Marketing Fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us an initial training fee in the amount of \$16,950, plus any applicable taxes, when you sign the Franchise Agreement. We use the initial training fee to train you (or your managing owner) or your business manager who we approve ("Business Manager"), and for

![](_page_12_Picture_0.jpeg)

the cost of an initial supply of business cards and marketing materials. If we determine that you (or your managing owner) or Business Manager (if applicable) cannot complete initial training to our satisfaction, we may terminate the Franchise Agreement and refund the initial franchise fee, less \$10,000 for our expenses.

The initial training fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business and is not refundable under any circumstances.

You must pay us a technology fee in the amount of \$3,000, plus any applicable taxes, (the "Technology Fee") in a lump sum when you sign the Franchise Agreement as the first payment of the annual Technology Fee.

Question 29

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the potential waiver of this fee for FocalPoint AR Businesses?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR

Question 30

How does the initial franchise fee for Focalpoint Coaching in Item 5 relate to the value of the brand and the support provided by the franchisor?

Accepted Answer

em.

## **Item 5**

## **INITIAL FEES**

You must pay us an initial franchise fee in a lump sum when you sign the Franchise Agreement. Our standard initial franchise fee currently is \$45,000, plus any applicable taxes. If you operate a FocalPoint AR Business under an Area Representative Agreement with us, when you sign the Franchise Agreement you also will sign the Area Representative Addendum to the Franchise Agreement (the "AR Addendum"), which will waive your obligation to pay an initial franchise fee under the Franchise Agreement. The current form of AR Addendum is attached as Exhibit I.

Eligible veterans of the United States military forces may pay a reduced initial franchise fee (currently, \$40,500, or a 10% reduction of our current standard initial franchise fee of \$45,000) under their first Franchise Agreement for a new FocalPoint Franchised Business. To qualify, veterans must provide us adequate documentation of their honorable discharge (by submission of a form 1041, military identification, and/or other materials we deem acceptable) and the qualified veteran must own at least 50% of the franchisee entity.

Initial franchise fees under Franchise Agreements are fully earned when paid and are not refundable under any circumstances, except as provided below. We use the initial franchise fee to help you develop and open your Franchised Business. Except as noted above for Area Representatives, the initial franchise fee is uniform as to all franchisees currently purchasing a franchise for a FocalPoint Franchised Business. If your Franchised Business is located in the territory of an Area Representative, we will pay the Area Representative a portion of the initial franchise fee you pay to us. During 2024, franchisees paid initial franchise fee

Question 31

How does the monthly royalty amount for a Focalpoint Coaching franchise change over time, specifically comparing the amounts in months 5-8, 9-12, and month 13 onward, assuming no associates?

Accepted Answer

undable.

![](_page_18_Picture_0.jpeg)

| Time Period During the Term of the Franchise Agreement                                                                                       | Royalty Amount (per month) | Royalty Amount if You have One Associate (per month) | Royalty Amount if You have Two Associates (per month) | Royalty Amount if You have Three Associates (per month) |
|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------|
| Months | \$1,000 | \$1,800 | \$2,600 | \$3,400 |
| 5 |  |  |  |  |
| through |  |  |  |  |
| 8 |  |  |  |  |
| immediately |  |  |  |  |
| following |  |  |  |  |
| the Effective Date |  |  |  |  |
| Months | \$1,500 | \$2,700 | \$3,900 | \$5,100 |
| 9 |  |  |  |  |
| through |  |  |  |  |
| 12 |  |  |  |  |
| immediately |  |  |  |  |
| following |  |  |  |  |
| the Effective Date |  |  |  |  |
| Month | \$1,950 | \$3,150 | \$4,350 | \$5,500 |
| 13 |  |  |  |  |
| immediately |  |  |  |  |
| following |  |  |  |  |
| the |  |  |  |  |
| Effective |  |  |  |  |
| Date |  |  |  |  |
| and |  |  |  |  |
| for |  |  |  |  |
| the |  |  |  |  |
| remainder of the term of |  |  |  |  |
| the Fra

Source: Item 6 — Other Fees (FDD pages 14–20)

Question 32

How much more revenue did Focalpoint Coaching generate from training fees in 2024 compared to 2023?

Accepted Answer

Wightman & Company, CPAs, LLC

Las Vegas, Nevada

February 26, 2025

![](_page_157_Picture_0.jpeg)

## NET REVENUES Years Ended December 31, 2024 and 2023

|                | 2024            |                        |    | 2023      |                        |  |
|----------------|-----------------|------------------------|----|-----------|------------------------|--|
|  | Amount | Percent to Revenues |  | Amount | Percent to Revenues |  |
| Conference fee | \$ 220,787 | 2.89% | \$ | 174,681 | 2.85% |  |
| Franchise fee | 2,367,359 | 31.03 |  | 2,181,700 | 35.64 |  |
| Marketing fee | 174,050 | 2.28 |  | 144,550 | 2.36 |  |
| Marketing fund | 48,645 | .64 |  | 42,428 | .69 |  |
| Royalty fee | 2,749,313 | 36.04 |  | 2,379,667 | 38.88 |  |
| Technology fee | 189,194 | 2.48 |  | 137,550 | 2.25 |  |
| Training

Source: Item 21 — Financial Statements (FDD page 56)

Question 33

What is the relationship between the initial franchise fee for Focalpoint Coaching mentioned in Item 5 and the regional setup fee detailed in Item 7?

Accepted Answer

fundable under any circumstances.

You must pay us a non-refundable regional setup fee in the amount of \$3,950, plus any applicable taxes, (the "Regional Setup Fee") in a lump sum when you sign the Franchise Agreement. The Regional Setup Fee is used to support our initial setup procedures based on the Territory spe

Question 34

If a Focalpoint Coaching franchisee fails to attend the annual national or any regional conference, are they still obligated to pay the Conference Registration Fee?

Accepted Answer

Failure to attend the annual national and/or any regional conference does not waive Franchisee's obligation to pay the Conference Registration Fee or any other fees due and payable for regional conferences.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 35

Under what conditions is a Focalpoint Coaching franchisee prohibited from developing a website mentioning the franchise?

Accepted Answer

I further agree that, during the term of my employment/service/association or ownership participation, I will not, directly or indirectly, engage or participate in any Competitive Business (defined below in this paragraph), any of which such prohibited behavior I understand and hereby explicitly acknowledge would or could be injurious to, or (in Company's sole judgment) have an adverse effect upon, Company's protectable interests in the Confidential Information, the "FocalPoint" trademark or related Marks, or the goodwill and/or reputation of FocalPoint Franchised Businesses generally. I agree that, unless Company provides prior written consent in its sole discretion, I am prohibited from engaging in any Competitive Business as a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant. For purposes of this Agreement, a "Competitive Business" means (i) any business which derives more than twenty percent (20%) of its revenue from selling business training or business consulting services and/or selling or offering products similar to those offered or sold by the Business; or (ii) grants franchises or licenses to others to operate the type of business specified in the preceding subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Company). Despite the foregoing definition of a Competitive Business, nothing under this Agreement or the Franchise Agreement will prevent Individual from owning for investment purposes less than two percent (2%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and so long as neither Individual nor Franchisee controls the company in question.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 36

According to the Focalpoint Coaching FDD, should a resident of Washington sign the questionnaire if the franchise is to be operated in Washington?

Accepted Answer

## **The following language applies only to transactions governed by the Washington Franchise Investment Protection Act:**

Do not sign this Questionnaire if you are a resident of Washington or the franchise is to be operated in Washington.

Source: Item 23 — Receipts (FDD pages 57–259)

Question 37

According to the Minnesota Rider, when will Focalpoint Coaching defer payment of initial fees?

Accepted Answer

Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 38

Does Focalpoint Coaching allow a transfer to an entity with an ownership interest in a competitive business, and if so, under what conditions?

Accepted Answer

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:

Franchisee therefore agrees that, during this Agreement's term and any renewal term, and unless Franchisor provides prior written consent in its sole discretion, neither Franchisee, any of Franchisee's owners, nor any of Franchisee's or Franchisee's owners' spouses will:

- (a) have any direct or indirect controlling or non-controlling interest as an owner – whether of record, beneficially, or otherwise – in a Competitive Business, wherever located or operating (except that equity ownership of less than two percent (2%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange will not be deemed to violate this subparagraph);
- (b) perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
- (c) divert or attempt to divert any actual or potential business or client of the Franchised Business or any FocalPoint Franchised Business to a Competitive Business; or
- (d) engage in any other activity which, in Franchisor's sole opinion, might injure the goodwill of the Marks or Franchise System.

The term "Competitive Business" means (i) any business which derives more than twenty percent (20%) of its revenue from selling business training or business consulting services and/or selling products similar to the Proprietary Products or (ii) any business granting franchises or licenses to others to operate the type of business specified in subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Franchisor).

Franchisee agrees to obtain similar covenants from the personnel Franchisor specifies, including officers, directors, managers, Associates and other employees attending Franchisor's training program or having access to Confidential Information. Franchisor has the right to regulate the form of agreement that Franchisee uses and to be a third party beneficiary of that agreement with independent enforcement rights.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 39

Where will arbitration be held for Focalpoint Coaching franchisees in North Dakota, according to the Rider?

Accepted Answer

5. **Arbitration**. The following language is added to the end of Section 17.E of the Franchise Agreement:

However, to the extent required by the North Dakota Franchise Investment Law (unless preempted by the Federal Arbitration Act), arbitration will be at a site to which we and you mutually agree.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 40

Does Focalpoint Coaching charge a fee for training associates and non-coaching employees?

Accepted Answer

We may require your Associates and non-coaching employees to complete initial and ongoing training programs to our satisfaction. We may charge you a fee for training Associates and non-coaching employees. (See Item 6) You are responsible for all related travel and living expenses and wages incurred in connection with you and your Associates, non-coaching employees and any other employees attending these training programs.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)

Question 41

What compliance standards must a Focalpoint Coaching franchisee meet to be eligible for a successor franchise?

Accepted Answer

rovements, and/or modifications required to bring the Franchised Business into compliance with then applicable System Standards for new FocalPoint Franchised Businesses; and
- (b) state the actions Franchisee must take to correct operating deficiencies and the time period in which Franchisee must correct these deficiencies.

If Franchisor elects not to grant Franchisee a successor franchise, Franchisor's Notice will describe the reasons for Franchisor's decision. If Franchisor elects to grant Franchisee a successor franchise, Franchisee's right to acquire a successor franchise is subject to Franchisee's full compliance with all of the terms and conditions of this Agreement through the date of its expiration, in addition to Franchisee's compliance with the obligations described in Franchisor's Notice.

If Franchisor's Notice states that Franchisee must cure certain deficiencies of the Franchised Business or its operation as a condition to Franchisor's granting Franchisee a successor franchise, Franchisor will give Franchisee written notice of Franchisor's decision not to grant a successor franchise, based upon Franchisee's failure to cure those deficiencies. If Franchisee fails to notify Franchisor of Franchisee's election to acquire a successor franchise within the prescribed time period, Franchisor need not grant Franchisee a successor franchise.

## C. **AGREEMENTS/RELEASES**.

If Franchisee satisfies all of the other conditions for a successor franchise, Franchisee and Franchisee's owners agree to execute the form of franchise agreement and any ancillary agreements Franchisor then customarily uses in granting franchises for FocalPoint Franchised Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which may contain provisions that differ materially from any and all of those contained in this Agreement. Franchisee and Franchisee's owners further agree to sign Franchisor's then-current form of general release, of any and all claims against Franchisor and Franchisor's shareholders, officers, directors, members, employees, agents, successors, and assigns.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 42

What condition applies to the arbitration site for Focalpoint Coaching franchisees in North Dakota?

Accepted Answer

5. **Arbitration**. The following language is added to the end of Section 17.E of the Franchise Agreement:

However, to the extent required by the North Dakota Franchise Investment Law (unless preempted by the Federal Arbitration Act), arbitration will be at a site to which we and you mutually agree.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 43

What condition must an assignee meet to assume Focalpoint Coaching's obligations under the franchise agreement, as per the Rider?

Accepted Answer

However, to the extent required by applicable law, no assignment will be made except to an assignee who, in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the franchise agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 44

What condition must be met before a California franchisee is required to pay initial fees to Focalpoint Coaching?

Accepted Answer

The Department has determined that either the franchisor has not demonstrated it is adequately capitalized or that the franchisor must rely on franchise fees to fund operations. The Commissioner has imposed a financial assurance condition and franchisor has elected to defer franchisee's payment of initial fees to franchisor until franchisor has satisfied all of its preopening obligations and franchisee has commenced doing business.

Therefore, the following paragraph is added to the end of Item 5 of the Disclosure Document:

Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 45

What condition must be met before a Focalpoint Coaching franchisee in Hawaii commences doing business to trigger initial fee payment?

Accepted Answer

- 2. **Initial Fees**. The following language is added to the end of Sections 3.A and 4.A of the Franchise Agreement:

Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 46

What condition must be met before a Focalpoint Coaching franchisee in Minnesota commences doing business?

Accepted Answer

- 2. **Initial Fees**. The following language is added to the end of Sections 3.A and 4.A of the Franchise Agreement:

Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 47

What condition must be met before a Focalpoint Coaching franchisee in North Dakota is required to pay initial fees?

Accepted Answer

Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 48

What conditions must a Focalpoint Coaching franchisee meet to be eligible for renewal or extension of the franchise term?

Accepted Answer

agreements. You should read these provisions in the agreements attached to this Disclosure Document**.

| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
|  | FRANCHISE OR OTHER AGREEMENT |  |
| a. Length of the | Section 1.D of | 7 years from the Effective Date of the Franchise |
| franchise term | Franchise Agreement | Agreement. |
| b. Renewal or | Section 13 of | If you are in full compliance, you may acquire 1 |
| extension of the |  |  |
| term |  |  |
|  | Franchise | successor franchise term of 7 years. The |
|  | Agreement | successor franchise will be on our then current form of Franchise Agreement (which may be materially different). |
| c. Requirements for |  | To “renew,” you must be in substantial |
| franchisee to renew |  |  |
| or extend |  | compliance with the Franchise Agreement; give us timely notice; pay us the renewal fee; maintain possession of Office premises or find acceptable substitute premises if the Office is located in a non-residential location; remodel Office according to our then current standards (regardless of cost), if the Office is located in a non-residential location; and sign our then current Franchise Agreement, a release (if law allows), and other documents we use to grant franchises.

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)

Question 49

What conditions must a Focalpoint Coaching franchisee meet to be eligible for a successor franchise term?

Accepted Answer

on.

## 13. **EXPIRATION OF THIS AGREEMENT**.

## A. **FRANCHISEE'S RIGHT TO ACQUIRE A SUCCESSOR FRANCHISE**.

If Franchisee meets certain conditions, then Franchisee will have the option to acquire one (1) successor franchise term for seven (7) years. The qualifications and conditions for the successor term are described below.

When this Agreement expires:

![](_page_102_Picture_0.jpeg)

- (1) if Franchisee (and each of Franchisee's owners) has substantially complied with this Agreement during its term; and
- (2) if Franchisee (and each of Franchisee's owners) is, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise (as provided in Subsection 13.B below) and on the date on which the term of the successor franchise would commence, in full compliance with this Agreement and all System Standards; and
- (3) provided that if the Office is located in a non-residential location, (a) Franchisee maintains possession of and agrees (regardless of cost) to remodel and/or expand the Office, add or replace Services, vehicles used by the Franchised Business, Operating Assets and/or Proprietary Products, and otherwise modify the Franchised Business as Franchisor requires to comply with System Standards then applicable for new FocalPoint Franchised Businesses, or (b) at Franchisee's option, Franchisee secures a substitute office that Franchisee approves and Franchisee develops that office according to System Standards then applicable for FocalPoint Franchised Businesses,

then Franchisee has the option to acquire a successor franchise term of seven (7) years commencing immediately upon the expiration of this Agreement if Franchisee complies with Franchisor's terms and conditions of renewal under this Agreement. Franchisee agrees to sign the form of franchise agreement Franchisor then uses to grant franchises for FocalPoint Franchised Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which, except for the Territory (which will remain the same), may contain provisions that differ materially from any and all of those contained in this Agreement, including the amount of the Royalty and Fund Contributions. Franchisee shall pay to Franchisor a renewal fee equal to Five Thousand Dollars (\$5,000), plus applicable taxes, for a successor franchise. The renewal fee must accompany Franchisee's written notice of Franchisee's election to acquire a successor franchise as provided in Subsection 13.B below.

If Franchisee (and each of Franchisee's owners) is not, both on the date Franchisee gives Franchisor written notice of Franchisee's election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Agreement and all System Standards, Franchisee acknowledges that Franchisor need not grant Franchisee a successor franchise, whether or not Franchisor had, or chose to exercise, the right to terminate this Agreement during its term under Subsection 14.B.

## B. **GRANT OF A SUCCESSOR FRANCHISE**.

Franchisee agrees to give Franchisor written notice of Franchisee's election to acquire a successor franchise no more than one hundred eighty (180) days and no less than ninety (90) days before this Agreement expires. Franchisor agrees to give Franchisee written notice of Franchisor's decision ("Franchisor's Notice"):

(1) to grant Franchisee a successor franchise;

![](_page_103_Picture_0.jpeg)

- (2) to grant Franchisee a successor franchise on the condition that Franchisee correct existing deficiencies in Franchisee's operation of the Franchised Business (including with respect to the vehicles used by the Franchised Business);

Source: Item 22 — Contracts (FDD pages 56–57)

Question 50

What conditions must a Focalpoint Coaching franchisee meet to have the option to acquire a successor franchise?

Accepted Answer

| Column 1                                            | Column 2                                                                                                                        | Column 3                                                                                               | Column 4                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Type of Fee(1) | Amount | Due Date | Remarks |
| Renewal | $5,000, plus any applicable taxes | When you provide us written notice of your election to acquire a successor franchise | You must meet certain conditions to have the option to acquire a successor franchise. |

Source: Item 6 — Other Fees (FDD pages 14–20)

Question 51

What are the conditions under which Focalpoint Coaching may condition a franchisee's right to buy or lease goods and/or services?

Accepted Answer

To maintain the quality of the goods and services that FocalPoint Franchised Businesses sell and our system's reputation, we may condition your right to buy or lease goods and/or services (besides those described above that you may obtain only from us, our affiliates, and/or other specified exclusive sources) on their meeting our minimum standards and specifications

![](_page_23_Picture_0.jpeg)

and/or being acquired from suppliers that we approve. We will issue and modify standards and specifications based on our, FocalPoint International's, and our franchise owners' experience in operating FocalPoint Franchised Businesses. Our standards and specifications may impose minimum requirements for production, performance, reputation, prices, quality, design, and appearance. Our Operations Manual or other communications will identify our standards and specifications. We will notify you and, where appropriate, the suppliers, of our standards and specifications. There might be situations where you can obtain items from any supplier who can satisfy our requirements and, therefore, would be an approved supplier.

If we institute any type of restrictive sourcing program (which, as noted above, we have already done for Proprietary Products and may do so for other items) and you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved or designated, you first must send us sufficient information, specifications, and samples so that we can determine whether the item or service complies with System Standards or the supplier meets approved supplier criteria. We may charge you or the supplier a reasonable fee for the evaluation (see Item 6) and will decide within a reasonable time (no more than 30 days). We periodically will establish procedures for your requests and may limit the number of approved items, services, and/or suppliers as we think best.

Supplier approval might depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us, FocalPoint International, and/or our system for the right to do business with our system. We, FocalPoint International, and any other affiliate have the right to receive payments or other material consideration from suppliers on account of their actual or prospective dealings with you and other franchise owners and to use all amounts that we and our affiliates receive without restriction (unless we and our affiliates agree otherwise with the supplier) for any purposes we and our affiliates deem appropriate. Supplier approval might be temporary until we evaluate the supplier in more detail. We may inspect a proposed supplier's facilities during and after the approval process to make sure that the supplier meets our standards. If it does not, we may revoke our approval by notifying the supplier and you in writing. We have no obligation to approve any request for a new supplier, product, or service. There are no fees associated with our evaluation and approval or disapproval of proposed suppliers.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 23–26)

Question 52

What are the conditions under which a Focalpoint Coaching franchisee can terminate the Franchise Agreement?

Accepted Answer

| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| d. Termination by |  | If we breach Franchise Agreement and an arbitrator determines that we did not cure default after notice from you, or upon your (or your managing owner’s) death or disability (subject to state law). |
| franchisee |  |  |
| p. Death or disability | Sections 12.E | Your or your managing owner’s representative |
| of franchisee |  | must within 12 months either (i) assign the |
|  | and 14.A of | franchise or an ownership interest in you to |
|  | Franchise | approved party or (ii) terminate the Franchise Agreement. |
|  | Agreement |

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)

Question 53

What are the consequences for a Focalpoint Coaching franchisee who violates the restrictions on sources of products and services?

Accepted Answer

[Item 8: Restrictions on Sources of Products and Services]

You currently must purchase all Proprietary Products (including business cards, marketing materials and coaching modules) from us, our affiliates, and our designated suppliers. If you choose to use an advertising and/or telemarketing service to promote your Franchised Business, you must use our designated supplier(s) for telemarketing and advertising services. If you choose to purchase TTI personality profile assessment access codes for use in your Franchised Business, we will require you to purchase them from us (or our affiliate) or directly from our designated supplier, currently TTI. In addition, you must license the CRM system and application service systems from our designated supplier, currently, HubSpot, for management and support services. There are no other goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate or comparable items for establishing or operating the Franchised Business that you currently must buy or lease from us (or an affiliate) or designated suppliers. Any purchases from us and our affiliates, whether required or voluntary, generally will be at prices exceeding our costs.

To maintain the quality of the goods and services that FocalPoint Franchised Businesses sell and our system's reputation, we may condition your right to buy or lease goods and/or services (besides those described above that you may obtain only from us, our affiliates, and/or other specified exclusive sources) on their meeting our minimum standards and specifications

![](_page_23_Picture_0.jpeg)

and/or being acquired from suppliers that we approve. We will issue and modify standards and specifications based on our, FocalPoint International's, and our franchise owners' experience in operating FocalPoint Franchised Businesses. Our standards and specifications may impose minimum requirements for production, performance, reputation, prices, quality, design, and appearance. Our Operations Manual or other communications will identify our standards and specifications. We will notify you and, where appropriate, the suppliers, of our standards and specifications. There might be situations where you can obtain items from any supplier who can satisfy our requirements and, therefore, would be an approved supplier.

---

[Item 8: Restrictions on Sources of Products and Services]

If we institute any type of restrictive sourcing program (which, as noted above, we have already done for Proprietary Products and may do so for other items) and you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved or designated, you first must send us sufficient information, specifications, and samples so that we can determine whether the item or service complies with System Standards or the supplier meets approved supplier criteria. We may charge you or the supplier a reasonable fee for the evaluation (see Item 6) and will decide within a reasonable time (no more than 30 days). We periodically will establish procedures for your requests and may limit the number of approved items, services, and/or suppliers as we think best.

Supplier approval might depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us, FocalPoint International, and/or our system for the right to do business with our system. We, FocalPoint International, and any other affiliate have the right to receive payments or other material consideration from suppliers on account of their actual or prospective dealings with you and other franchise owners and to use all amounts that we and our affiliates receive without restriction (unless we and our affiliates agree otherwise with the supplier) for any purposes we and our affiliates deem appropriate. Supplier approval might be temporary until we evaluate the supplier in more detail. We may inspect a proposed supplier's facilities during and after the approval process to make sure that the supplier meets our standards. If it does not, we may revoke our approval by notifying the supplier and you in writing. We have no obligation to approve any request for a new supplier, product, or service. There are no fees associated with our evaluation and approval or disapproval of proposed suppliers.

---

## **Item 8**

## **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES**

You must operate the Franchised Business according to our System Standards. System Standards may regulate, among other things, the types, models, and brands of Proprietary Products, fixtures, furniture, vehicles, furnishings, and signs (collectively, "Operating Assets"); products, other equipment and supplies you must use in operating the Franchised Business; unauthorized and prohibited products, equipment, and services; inventory requirements; and designated and approved suppliers of Operating Assets, Proprietary Products and other items.

In the case of Proprietary Products, suppliers will be limited to us, our affiliates, and/or our designated third party suppliers, and you must buy Proprietary Products during the franchise term only from us, our affiliates, and/or our designated third party suppliers at the prices we and they decide to charge. We restrict your sources of Proprietary Products in order to protect our trade secrets, assure quality, assure a reliable supply of products that meet our standards, achieve better terms of purchase and delivery service, control usage of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items. You will acquire an initial supply of Proprietary Products, including business cards and marketing materials from us as partial consideration for your payment of the training fee (see Item 5).

In the case of Operating Assets, suppliers could, at our option, be limited to us, our affiliates, and/or other specified exclusive sources, in which case you would have to buy such Operating Assets only from us, our affiliates, and/or the other specified exclusive sources at the prices we or they decide to charge. We have the absolute right to limit the suppliers with whom you may deal. Neither we nor any of our affiliates are currently the only approved suppliers for any of the products that you must use in operating the Franchised Business. There are currently no suppliers in which any of our officers owns an interest.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 23–26)

Question 54

What constitutes 'cause' for Focalpoint Coaching to terminate the franchise, and what cure periods are allowed for different defaults?

Accepted Answer

agreements. You should read these provisions in the agreements attached to this Disclosure Document**.

| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
|  | FRANCHISE OR OTHER AGREEMENT |  |
| a. Length of the | Section 1.D of | 7 years from the Effective Date of the Franchise |
| franchise term | Franchise Agreement | Agreement. |
| b. Renewal or | Section 13 of | If you are in full compliance, you may acquire 1 |
| extension of the |  |  |
| term |  |  |
|  | Franchise | successor franchise term of 7 years. The |
|  | Agreement | successor franchise will be on our then current form of Franchise Agreement (which may be materially different). |
| c. Requirements for |  | To “renew,” you must be in substantial |
| franchisee to renew |  |  |
| or extend |  | compliance with the Franchise Agreement; give us timely notice; pay us the renewal fee; maintain possession of Office premises or find acceptable substitute premises if the Office is located in a non-residential location; remodel Office according to our then current standards (regardless of cost), if the Office is located in a non-residential location; and sign our then current Franchise Agreement, a release (if law allows), and other documents we use to grant franchises. The terms of our then current Franchise Agreement that you sign for renewal of the |![](_page_43_Picture_0.jpeg)

| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
|  | FRANCHISE OR OTHER AGREEMENT | franchise may differ materially from any and all of those contained in the Franchise Agreement attached to this Disclosure Document, including reduced Territory and increased fees. |
| d. Termination by |  | If we breach Franchise Agreement and an arbitrator determines that we did not cure default after notice from you, or upon your (or your managing owner’s) death or disability (subject to state law). |
| franchisee |  |  |
| e. Termination by |  | Not Applicable. Not Applicable. |
| franchisor without |  |  |
| cause |  |  |
| f. Termination by | Section 14.B | We may terminate your franchise only if you or your owners commit one of several violations. |
| franchisor with | of Franchise |  |
| cause | Agreement |  |
| g. “Cause” defined- | Section 14.B | You have 72 hours to cure any law, ordinance, |
| curable defaults g. “Cause” defined- |  |  |
| curable defaults | of Franchise | or regulation regulating the operation of the |
|  | Agreement | Franchised Business; 10 days to cure monetary defaults and failure to maintain required insurance; 30 days to cure operational defaults and other defaults not listed in (h) below; and 90 days to relocate the Office to a new site if you lose possession of the premises. |
| h. “Cause” defined- |  | Non-curable defaults include: misrepresentation in acquiring the franchise; failure to open and operate the Franchised Business within 60 days after Franchise Agreement’s Effective Date; failure to complete training; abandonment; unapproved transfers; conviction of a felony crime or other offense; dishonest or unethical conduct;

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–48)

Question 55

How does the Continuing Service and Royalty Fee change for a Focalpoint Coaching franchisee if they hire or retain associates?

Accepted Answer

Franchisee agrees to pay Franchisor, in the manner provided below (or as the Operations Manual otherwise prescribes), a monthly Continuing Service and Royalty Fee (the "Royalty") in amounts equal to those described in the table below. Franchisee shall pay all applicable taxes on Royalty payments to Franchisor. The amount of the Royalty will be increased for each Associate hired or retained from time to time by Franchisee in an amount equal to the table below. For purposes of this Subsection 3.H, an Associate shall be considered hired or retained on the first day of the month after the Associate completes the training program for Associates to Franchisor's satisfaction. On or before the first day of each month during the term of this Agreement, Franchisee agrees to send Franchisor the Royalty due for that month.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 56

When is the CRM setup fee due for a Focalpoint Coaching franchisee who retains or hires an Associate Franchisee?

Accepted Answer

Franchisee must pay Franchisor an additional CRM Setup Fee for each Associate Franchisee retains or hires. This fee is due, and fully earned by Franchisor, when Franchisee signs this Agreement or Franchisee retains or hires an Associate, whichever is applicable, and is not refundable under any circumstances.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 57

What is the effect of the Franchise Agreement on the interpretation of capitalized terms in the Focalpoint Coaching Nondisclosure and Non-Competition Agreement?

Accepted Answer

| THIS NONDISCLOSURE AND NON-COMPETITION AGREEMENT (this                                                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| "Agreement") is made as of the |
| day of, 20, is executed by |
| ("Individual," "me," or "I") for the benefit of                                                                                                                                                                                                                        |
| a |
| Nevada |
| corporation |
| ("Company"), |
| and |
| for |
| FOCALPOINT |
| COACHING, |
| INC., |
| , a/an ("Franchisee").                                                                                                                                                                                                                                                 |
| Franchisee is a franchisee of Company pursuant to a franchise agreement entered into by |
| those parties concerning a business operating, or to be operated, under the "FocalPoint" name at |
|  |
| (the |
| "Franchise |
| Agreement"). |
| The |
| franchised |
| business |
| Company authorizes Franchisee to operate under the Franchise Agreement is known as the                                                                                                                                                                                 |
| "Business," which Business is one among all businesses that Company owns, operates, or                                                                                                                                                                                 |
| franchises under the "FocalPoint" name. I agree that, unless otherwise specified, all capitalized                                                                                                                                                                      |
| terms in this Agreement have those meanings ascribed to them in the Franchise Agreement.                                                                                                                                                                               |

Source: Item 22 — Contracts (FDD pages 56–57)

Question 58

What is the effect of Subsections 12.B and C on the sale of a Focalpoint Coaching franchise?

Accepted Answer

Franchisor may review all information regarding the Franchised Business that Franchisee gives the transferee, correct any information that Franchisor believes is inaccurate, and give the transferee copies of any reports that Franchisee has given Franchisor or Franchisor has made regarding the Franchised Business.

## D. **TRANSFER TO A WHOLLY-OWNED CORPORATION OR LIMITED LIABILITY COMPANY**.

Despite Subsection 12.C above, if Franchisee is fully complying with this Agreement, Franchisee may transfer this Agreement to a corporation or limited liability company which conducts no business other than the Franchised Business and, if applicable, other FocalPoint Franchised Businesses, in which Franchisee maintains management control, and of which Franchisee owns and controls one hundred percent (100%) of the equity and voting power of all issued and outstanding ownership interests, provided that all of the Franchised Business' assets are owned, and the Franchised Business' business is conducted, only by that single corporation or limited liability company. The corporation or limited liability company must expressly assume all of Franchisee's obligations under this Agreement. Transfers of ownership interests in the corporation or limited liability company are subject to the conditions of Subsection 12.C above that otherwise apply to non-controlling transfers. Franchisee agrees to remain personally liable under this Agreement as if the transfer to the corporation or limited liability company did not occur.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 59

To what extent will Focalpoint Coaching enforce provisions in the Franchise Agreement regarding jury trial waivers, forum selection, and liquidated damages in Minnesota?

Accepted Answer

ny of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

8. **Consent to Jurisdiction**. The following is added to the end of Section 17.G of the Franchise Agreement:

However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Section 17.G shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

- 9. **Waiver of Punitive Damages and Jury Trial**. If required by the Minnesota Franchises Law, Section 17.H of the Franchise Agreement is deleted.
- 10. **Limitations of Claims**. The following is added to the end of Section 17.J of the Franchise Agreement:

However, Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.

11. **No Waiver of Disclaimer of Reliance**.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 60

To what extent will Focalpoint Coaching enforce termination or liquidated damages provisions in North Dakota?

Accepted Answer

3. The "Summary" section of Item 17(i), entitled **Franchisee's obligations on termination/non-renewal**, of the Franchise Agreement chart in the Disclosure Document is amended by adding the following:

The Commissioner has determined termination or liquidated damages to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. However, we and you agree to enforce these provisions to the extent the law allows.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 61

To what extent will Focalpoint Coaching seek to enforce non-competition covenants in North Dakota?

Accepted Answer

4. **Covenant Not to Compete**. The following language is added to the end of Section 15.D. of the Franchise Agreement:

Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.

5. **Arbitration**. The following language is added to the end of Section 17.E of the Franchise Agreement:

However, to the extent required by the North Dakota Franchise Investment Law (unless preempted by the Federal Arbitration Act), arbitration will be at a site to which we and you mutually agree.

6. **Governing Law**. The following language is added to the end of Section 17.F of the Franchise Agreement:

FocalPoint Coaching Inc. FocalPoint – 03/2025 Unit FDD

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Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 62

What fees, otherwise payable under the Focalpoint Coaching Franchise Agreement, must the franchisee pay if the Area Representative hires or retains an Associate?

Accepted Answer

1. **Recitations.** The foregoing recitations of fact are true and correct and are incorporated herein by this reference. All initial capitalized terms used but not defined in this Addendum shall have the meanings set forth in the Franchise Agreement. This Addendum is annexed to and forms part of the Franchise Agreement. All references in this Addendum to "Section" shall mean the applicable Section of the Franchise Agreement. Except as provided in this Addendum, the Franchise Agreement remains in full force and effect as originally written. If there is a conflict between the terms of the Franchise Agreement and the terms of this Addendum, the terms of this Addendum shall control.
- 2. **Waiver of Certain Fees under the Franchise Agreement**. Notwithstanding anything to the contrary in the Franchise Agreement, during such time as the Area Representative Agreement remains in effect, Franchisee shall not be required to pay the following fees payable under the Franchise Agreement: Section 3.A (the initial franchise fee); Section 3.B (Royalty), Section 3.D (Technology Fee); Section 3.E (Regional Setup Fee); Section 3.F (Conference Registration Fee); Section 3.G (Initial Marketing Fee); and Section 9.A (contributions to the Fund). Notwithstanding the foregoing, if Area Representative hires or retains an Associate, then Area

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Representative must pay all fees applicable for each Associate as required under the Franchise Agreement. In the event the Area Representative Agreement terminates or expires during the term of the Franchise Agreement, the temporary waiver under this Section shall expire and Franchisee shall immediately commence to pay Franchisor the Royalties, Technology Fees, Conference Registration Fees and Fund contributions in accordance with the terms of the Franchise Agreement.

- 3. **No Other Modifications**. The parties hereby acknowledge and agree that this Addendum does not modify or amend the Area Representative Agreement, which shall remain in full force and effect. Except as expressly set forth herein, all of the terms and conditions of the Franchise Agreement shall remain in full force and effect.
- 4. **Authorized Signatories**.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 63

What financial assurance condition has been imposed on Focalpoint Coaching, and how does it affect the franchisee's payment of initial fees?

Accepted Answer

The Department has determined that either the franchisor has not demonstrated it is adequately capitalized or that the franchisor must rely on franchise fees to fund operations. The Commissioner has imposed a financial assurance condition and franchisor has elected to defer franchisee's payment of initial fees to franchisor until franchisor has satisfied all of its preopening obligations and franchisee has commenced doing business.

Therefore, the following paragraph is added to the end of Item 5 of the Disclosure Document:

Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.

Source: Item 22 — Contracts (FDD pages 56–57)

Question 64

Where can I find the name of FocalPoint Coaching's agent for service of process in my state?

Accepted Answer

If we have an agent in your state for service of process, we disclose that agent in Exhibit A.

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–10)

Focalpoint_Coaching 2025 FDD FAQ