Can Focalpoint Coaching and its affiliates receive payments, rebates, or other consideration from suppliers based on their dealings with Focalpoint Coaching franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to collect for deposit into the Fund any advertising, marketing, or similar allowances paid to Franchisor by suppliers who deal with FocalPoint Franchised Businesses and with whom Franchisor has agreed that Franchisor will so deposit these allowances. (These payments are different from those which are not designated by suppliers to be used exclusively for advertising or similar purposes and which Franchisor and Franchisor's affiliates therefore may use for any purposes Franchisor and they deem appropriate, as provided in Subsection 8.B above.)
Franchisor may designate a separate entity as Franchisor deems appropriate in its sole discretion to operate and administer the Fund. Any such entity will have all of the rights and
duties as specified in this Section. Franchisor will direct all programs that the Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The Fund may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce Website and/or related strategies; administering regional and multi regional marketing and advertising programs, including, without limitation, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
The Fund periodically may give Franchisee samples of advertising, marketing, and promotional formats and materials at no cost. Franchisor will sell Franchisee multiple copies of these materials at Franchisor's direct cost of producing them, plus any related shipping, handling, and storage charges.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the right to collect advertising, marketing, or similar allowances from suppliers who deal with Focalpoint Coaching franchisees. These funds are to be deposited into an advertising fund.
Focalpoint Coaching can use payments from suppliers that are not specifically designated for advertising or similar purposes for any purpose they deem appropriate. This means that Focalpoint Coaching and its affiliates may benefit financially from arrangements with suppliers based on the volume or value of purchases made by Focalpoint Coaching franchisees.
The advertising fund is controlled by Focalpoint Coaching, which directs all programs financed by the fund, including creative concepts, materials, endorsements, and their placement. The fund can be used for various advertising and marketing activities, such as producing materials, maintaining websites, administering marketing programs, and supporting public relations. Franchisees may receive samples of advertising materials at no cost, and can purchase additional copies at Focalpoint Coaching's direct cost of production plus related charges.
This arrangement could incentivize Focalpoint Coaching to favor certain suppliers over others, potentially impacting the costs and choices available to franchisees. Prospective franchisees should inquire about the criteria for supplier selection and how the advertising fund is managed to ensure transparency and fair practices.