What administrative fee will Focalpoint Coaching charge if I am late on any payment?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
K. LATE FEES AND INTEREST.
If Franchisee is late in any payment under this Agreement, Franchisee shall pay Franchisor an amount equal to eighteen percent (18%) of the amount owed as an administrative fee to compensate Franchisor for its increased costs and expenses. In addition, all amounts which Franchisee owes Franchisor for any reason, will bear interest accruing as of their original due date at one and one half percent (1.5%) per month or the highest commercial contract interest rate the law allows, whichever is less. Franchisor may debit Franchisee's bank account automatically for late fees and interest. Franchisee acknowledges that this Subsection 3.K is not Franchisor's agreement to accept any payments after they are due or Franchisor's commitment to extend credit to, or otherwise finance Franchisee's operation of, the Franchised Business.
L. APPLICATION OF PAYMENTS.
Despite any designation Franchisee makes, Franchisor may apply any of Franchisee's payments to any of Franchisee's past due indebtedness to Franchisor. Franchisor may set off any amounts Franchisee or Franchisee's owners owe Franchisor or Franchisor's affiliates against any amounts Franchisor or Franchisor's affiliates owe Franchisee or Franchisee's owners. Franchisee may not withhold payment of any amounts Franchisee owes Franchisor due to Franchisor's alleged nonperformance of any of Franchisor's obligations under this Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee is late on any payment, Focalpoint Coaching will charge an administrative fee. This fee is equal to eighteen percent (18%) of the amount owed. This fee is intended to compensate Focalpoint Coaching for its increased costs and expenses associated with the late payment.
In addition to the administrative fee, all overdue amounts will accrue interest from the original due date. The interest rate is set at one and one-half percent (1.5%) per month, or the highest commercial contract interest rate permitted by law, whichever is less. Focalpoint Coaching retains the right to automatically debit the franchisee's bank account for both late fees and accrued interest.
The Franchise Agreement specifies that Focalpoint Coaching's acceptance of late payments does not constitute an agreement to accept future late payments. Nor does it represent a commitment to extend credit or finance the franchisee's business operations. Focalpoint Coaching also reserves the right to apply any payments received to any outstanding debts, regardless of any designation made by the franchisee. Additionally, franchisees are not permitted to withhold payments due to alleged non-performance by Focalpoint Coaching.
Prospective franchisees should be aware of these financial obligations and ensure they have sufficient capital and cash flow management strategies in place to avoid incurring late fees and interest charges. Understanding these terms is crucial for maintaining a healthy financial relationship with Focalpoint Coaching and ensuring the long-term success of the franchise.