Can Focalpoint Coaching automatically debit my bank account for late fees and interest?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 automatically debit a franchisee's bank account for late fees and interest. Specifically, if a franchisee is late on any payment, they will be charged an administrative fee equal to 18% of the amount owed.
Additionally, all outstanding amounts owed to Focalpoint Coaching will accrue interest from the original due date at a rate of 1.5% per month, or the highest commercial contract interest rate allowed by law, whichever is less. The FDD explicitly states that Focalpoint Coaching may debit the franchisee's bank account for these late fees and accrued interest.
It is important to note that while Focalpoint Coaching has the right to automatically debit for these fees, this does not obligate them to accept late payments or extend credit to the franchisee. The franchisee is responsible for ensuring timely payments to avoid these charges and potential debits.